There may be any number of reasons why you want to change business energy suppliers. You might, for example, find you’re paying way over the odds for those utilities compared to neighbouring businesses or it could be the customer service of the energy company that isn’t good enough.
Unfortunately, many businesses find themselves locked into a contract that doesn’t work for them or simply don’t consider changing.
The good news is that Ofgem are trying to make it easier for everyone, including business owners, to switch. The bad news is that it’s often not top of the list for many companies. There are usually a lot of other things that take precedence such as improving growth, creating powerful marketing campaigns and generally competing in a crowded market place.
Getting a better deal on your energy contract, however, can save your business money and give you more to invest in that growth.
Business Energy Contracts
Business energy contracts vary between one and five years. Most companies will be on a minimum 2 year contract and you have to wait until that term is nearly up before looking at different suppliers. The problem is that many business owners and managers don’t keep a close track of their contract. Once the initial term is up, a utility company can start charging you what are called out of contract rates, something which tends to hike up the price quite considerably.
Businesses can also think that suppliers are much the same, wherever you go. Actually, this isn’t true. Rates differ and you can pick up good deals if you know where and when to look. You might even be able to negotiate a better contract with your existing supplier, particularly if you use an energy broker who knows the market intimately.
Change your Business Energy Supplier
You can decide to change your supplier if you are currently out of contract, without any penalty. If you are still in contract, however, you may have to pay a cancellation fee. For smaller, micro businesses of up to 10 employees, you can tell your utility supplier you intend to switch but it will not be able to go ahead until the contract is up. For SMEs and larger businesses, you have a 120 day window before the end of the contract to switch your supplier but most utilities still stipulate a 30 day notice period.
If your business is changing location, you can negotiate a new contract before the move. If you don’t, you can end up on less beneficial rates which will cost more money.
Use an Energy Broker
The key to successfully negotiating a good deal is in utilising the best resources. In this case, an experienced energy broker like the experienced team at Supplywise. They’ll be able to review your current contract, look at your individual energy needs and make suggestions to reduce your usage. More importantly, a broker has a deep understanding of the energy market and what the various tariffs and deals mean both now and in the future. They’ll also be able to negotiate a more favourable deal that matches you company better.