Want to compare business electricity tariffs? Here’s our handy tariff guide
It’s a given that as a business you’ll need to have an energy supplier and factor in the cost of energy to your overheads. So it makes sense before committing to a supplier that you compare business electricity tariffs and tariffs for gas supply too.
Before you sign on the dotted line for a new supplier, take a moment or two to read this handy guide to tariffs, so you better understand the system imposed by the energy suppliers. As they say knowledge is power!
And once you’re familiar with the system, why not take advantage of a free energy price comparison from the team here at Commercial Energy Group? You could save up to 30% on your business energy bills.
Fixed price energy deals explained
Let’s look first at fixed price energy deals. In a nutshell, a fixed energy plan allows you to set the level you pay for a determined amount of time. The benefit for your business is that you are protected from any price rise pressures that affect the energy sector; after all, energy prices are subject to UK and worldwide market pressures and can vary widely.
Of course, the counter argument is that prices could fall during your fixed tariff period, and you wouldn’t be able to benefit from any price drop.
Ask yourself, would it be better for your business to be on a fixed tariff or be subject to a variable tariff? Again, when you compare business electricity tariffs the results will inform your decision.
It’s important to remember that it is the cost of each kWh (kilowatt hour) that remains fixed – your monthly bill will still vary as it will reflect the amount of energy you have consumed. The more you use, the more you pay.
The amount of money you pay will be worked out by your supplier based on the amount of energy you are expected to use. But if you’re regularly using more or less energy than calculated, the supplier may suggest a rise or fall in your monthly payment.
So, fixed rate deals protect you from price rises and offer security and, knowing what your energy costs will be, help you to budget. They can often be cheaper than a variable rate deal, so are becoming increasingly popular. The longer your fixed rate contract, the more secure you’ll be. But beware. Should you find a better and want to switch early, you are likely to be charged an exit fee.
Variable energy tariffs explained
A variable rate tariff is also known as a standard tariff. If your current deal has expired this is the default tariff you will be put on until a new contract is agreed (or you switch supplier), or you may even had opted for this tariff in the first instance.
If you are on a variable energy tariff you have to bear in mind that the cost of your energy could rise at any time, depending on market forces. Equally, the cost could fall. When looking to compare business electricity tariffs this is an important factor to take into consideration.
In the current climate, with governments pushing energy providers to offer greater levels of ‘green’ energy, which at the moment come at a higher cost, the chance of the variable tariff rate increasing is quite high.
The plus side is that if you leave your variable plan you won’t face any early exit fees, as is usually the case if you leave a fixed rate tariff ahead of the contract expiry period.
Capped energy tariffs explained
This is where your energy price is capped at a pre-agreed amount and you will never pay beyond this maximum. This protects you from large price increases, but is unlikely to be the most cost effective plan for you and will certainly carry an early exit fee.
What is a dual fuel tariff?
Here, you receive your electricity and gas from a single supplier, who should offer a good discount to receive the bonus of providing you with two utilities instead of one. But make sure you can’t get a better deal by having two separate contracts with two separate suppliers. Again, the team at Commercial Energy Group can find the best deal for you.
What is an online tariff?
These can be cheap and cheerful but are all operated via computer-based account management, so if you want paper bills, or to speak to a human being in customer services, this probably isn’t the option for you.
Economy 7/Economy 10 tariff explained
These are great if you have a predictable pattern of energy use, as the cost you pay is reduced during defined off peak hours, usually for seven or ten hours a day. However, beware: peak hours are usually charged at a higher rate, so you have to be certain of you pattern or energy use.
Can I pre-pay on a pre-payment tariff?
Here, you pay in advance for your energy before you use it, and you will also need to use a pre-payment meter. This does give you control and with pay-as-you-go you have no nasty surprises in a monthly bill. However, this is often a more expensive option.
Tell me about green tariffs
These are tariffs charged for energy that comes all or in part from renewable sources, such as wind or solar power. They are usually charged at a higher rate, but on the plus side the green credentials can help a business with brand reputation, gaining traction with clients, and supporting a CSR (Corporate Social Responsibility) policy.
Tell me about green tariffs
This has to be a matter of choice following a detailed assessment of your individual circumstances.
The team here at Commercial Energy Group will take everything into account if you ask us to carry out a free energy price comparison, and we’ll advise you on the best deal for your business.
If you want to chat more about different energy deals, or ask us to compare business electricity tariffs and gas tariffs, why not get in touch with the team at Commercial Energy Group? Call us today on 0333 305 2303.