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2 Oct

Why Firms Need to Look Closely Commercial Energy Supply

by Simon Thompson
 
  • Find a commercial energy quote
  • Understand commercial energy prices
  • Switch commercial energy suppliers
  • Reasons for switching to a new energy supplier
  • The energy supplier switchover process

 

With all organisations needing to keep an eye on their overheads, it makes sense that sourcing a cheap commercial energy supply will make for a sound business proposition.

Indeed, for any business wanting to save money on their energy costs, knowledge really is power and there is no doubt that by finding a great energy deal can help pay dividends, particularly for small businesses.

However, finding the correct type of business energy tariff is an important part of the process which means firms will need to understand how the commercial energy market works to enjoy the best deals.

Having said that, many firms, whether they are large or small, will be too busy with their day-to-day activities to spend time carrying out the research so it will probably pay to speak with those who understand the market and have access to the latest deals and offers which means speaking with the friendly D-Energi team.

Find a commercial energy quote

The first step for all firms is to find a commercial energy quote that meets their needs and beats their current offering.

It will soon become apparent that there are lots of commercial energy suppliers around with a dizzying number of products and offers available; it is a difficult task to contact each of them to find out if they have something that will meet your needs.

This is where using a commercial energy comparison website may pay off because with a few details the website can then analyse a wide range of deals.

There are pros and cons for using these energy sites but the most attractive is that they will return an offer that will show whether your current deal is a good one or not.

The main downside is that these commercial energy comparison websites may not be accessing the entire market so you may potentially be missing out on better deals and offers.

It will also become apparent that after speaking with the energy provider that the price being quoted on the comparison website bears little or no resemblance to the price being quoted. That’s because the energy provider will need to offer a bespoke deal to meet your firm’s specific needs.

Understand commercial energy prices

It’s also important the firm that is looking for a cheaper energy supply will need to understand commercial energy prices and how they are made up.

Essentially, the bill consists of two parts; the contract unit rate which is how much the firm is paying per unit of energy, measured in kWh, and it’s this that is the biggest difference between energy quotes.

The unit rate will reflect your business’s circumstances and how much energy you are likely to use and even your geographic location.

The second part is the standing charge which is a fixed daily cost that the energy supplier will use to cover its costs for maintaining and repairing facilities to supply energy to your premises.

However, when comparing potential new energy suppliers, it is important that the standing charge is examined closely since a new supplier may offer a lower unit rate but have a higher standing charge instead – so there are no ‘real’ savings being made.

Switch commercial energy suppliers

Another important question that all firms will need to answer is when can they switch commercial energy suppliers?

Unfortunately, firms will need to wait until their current contract is due to end before they can switch suppliers. It’s a difficult and potentially expensive process to break your energy contract mid-term.

Also, if your firm has never switched suppliers previously then you may have been automatically rolled over onto a ‘deemed’ contract which means you’re probably paying much more for your energy needs than you need to.

Reasons for switching to a new energy supplier

However, it’s not all about lowering overheads for firms, some organisations may also need to switch suppliers if they are moving premises or expanding and need a new energy supply. Again, expert advice may be necessary and in these instances, the D-Energi team can help.

It also needs to be appreciated that the government is keen for firms to switch energy suppliers on a regular basis since this will encourage competition in the marketplace and it is this competition that will help drive down prices while improving levels of customer service.

Unfortunately, around four in every 10 firms have never bothered to switch their energy supply so they are probably not on the best deals.

In addition, many firms will be tempted to remain with one of the ‘big six’ energy suppliers in the UK simply because they have heard of the provider though the best deals tend to be from smaller business energy suppliers.

The energy supplier switchover process

Also, some business owners may believe that the energy supplier switchover process is complicated and time-consuming but this would be a mistake since the switchover itself is a seamless transition between suppliers.

The experts at D-Energi can help with the paperwork and ensure that this process does proceed without a hitch.

 

As mentioned previously, the easiest way of understanding how the commercial energy market works, and accessing help to find a cheaper supplier before switching, is to speak with the D-Energi team as they have the experience in helping firms both large and small access cheaper commercial energy deals.

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