How to compare business electricity prices and save money
Comparing business electricity prices may not be the most glamorous of tasks, but it can result in some substantial financial savings.
What’s more, it’s never been easier to assess the commercial energy tariffs offered by energy suppliers across the UK. There’s no need for a painstaking manual review of every single provider - we do all of the leg work for you.
But when you’re presented with a list of different gas and electricity prices - each with their specific terms and conditions - how do you know which deal is right for you?
Don’t be put off by smaller business energy suppliers
For years, the energy market has been saturated by ‘the big six’ providers. Tried and tested and used by millions throughout the UK, they are the first port of call for many people who are looking for cheap gas and electricity.
But as the market broadens and the need for affordable utility prices intensifies, the emergence of smaller energy firms has breathed new life into the industry. More and more companies are now available for consumers looking to find the cheapest energy prices. This is partly due to the work of energy regulator Ofgem, which is keen to ‘level the playing field’, giving these lesser known providers more exposure.
So why choose a smaller electricity provider? And how could they potentially be the best choice for your business?
● Because of their size in comparison to ‘the big six’, smaller suppliers have fewer overheads and are not obligated to pay into certain government initiatives. This means they can relay the savings to their customers, often making them the cheapest option.
● These firms tend to have a smaller customer base, which in many cases can mean that they perform brilliantly in customer satisfaction polls.
● A lot of small, independent energy suppliers only offer one single energy tariff to all customers. While this may not sound like a particularly attractive USP on the face of it, this simplified approach is actually appreciated by many business energy customers. It cuts through all of the complexity of energy tariffs.
How are electricity prices calculated?
There are many factors that can affect how much your business pays for electricity. Because of this, providers work out their tariffs differently. Changes in global gas, oil and coal prices can make a significant difference.
As the weather in the UK is so unpredictable, the demands of consumers can change. For example, if we experience a bitterly cold winter, energy usage will generally increase as the need for portable heaters, fireplaces etc. grows. It’s a simple case of supply and demand - it’s just that it’s (arguably) more pronounced in the energy industry.
The way in which suppliers buy their energy can also impact prices. In most cases, bigger providers purchase it in bulk and well in advance of them selling it. This means that price fluctuations don’t have an effect for weeks, months or even years after they happen.
Regardless of what affects tariffs, you will find a variety of prices available from a huge array of energy companies. This is why performing a price comparison will ensure you get the perfect deal for your business.
Switching energy provider has never been easier (or quicker)
The time it takes to switch has always been a cause for concern for consumers. But thanks to changes made by the Government, energy providers have now made it much easier and quicker to switch.
This has led to a much more competitive market, giving energy companies another way to provide their customers with a better experience. By using our business energy comparison service, you can find the right electricity tariff for you with no fuss. Take advantage of the incredible savings your business could make.