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The most compelling reason for running a business energy comparison is that it could save your business money.
If you’ve moved into a new premises, let your old contract expire without arranging a new one or you’ve never run a commercial gas and business electricity price comparison, then it’s likely you’re overpaying. It’s imperative to compare business gas and electricity quotes and switch deals as soon as you can.
Unfortunately you can’t simply compare business electricity prices online as you can for domestic energy. In order to compare business electricity prices and gas tariffs, you’ll need some know-how and plenty of time. This is because business energy deals are designed on a bespoke basis to reflect their differing needs.
To get the full picture of what’s available, aim to compare business electricity and gas quotes from at least 10 or more different suppliers. It’s important to compare business energy deals from across the market, from big six to small independent companies. While some suppliers will let you compare business electricity prices online, negotiation plays an important part in securing a great contract so it’s better to run a business energy comparison by phone. As dual fuel contracts aren’t available for business customers, you’ll need to compare business electricity and gas quotes separately.
Once you’ve gathered enough quotes, compare business electricity and gas unit costs and standing charges to see which has the best offer. While cost will obviously play the biggest part in your decision, service is also a very important consideration when you compare business energy deals. Interruptions to your energy supply could lose your business money in the long-term so it’s critical to compare business gas and electricity deals thoroughly and be confident that the contract you sign offers great service as well as a great price.
Before you compare business energy deals, it’s important to be aware that suppliers take several factors into consideration:
Business size, number of employees and annual energy consumption: the bigger your business, the more energy it uses. Higher consumption means that large companies can negotiate preferential deals when running a commercial gas and business electricity price comparison.
Business nature: businesses that operate outside of standard hours such as during the evenings and at weekends will be offered cheaper deals when running commercial gas and business electricity price comparisons.
Business location: if you compare business electricity prices and gas costs across the UK, you’ll see that they can vary by as much as 20% with businesses in Scotland paying the highest prices and the Midlands benefitting from the cheapest rates. Compare business energy deals, and you’ll see that companies in rural areas pay more for their energy than their city counterparts.
Contract length: when you run a commercial gas and business electricity price comparison, you’ll see that the longer the contract, the cheaper the unit price and the higher the standing charge. It’s important to bear this in mind when you compare business gas and electricity deals.
Suppliers: businesses can’t avail of combined electricity and gas contracts which means you’ll have to compare business gas and electricity separately. However, you may get a discount for choosing the same company for gas and electricity, although you’re unlikely to be offered this if you only compare business electricity prices online.Outside factors such as natural disasters and political turmoil can all also affect business energy prices.
While you might not see it as a separate itemised cost when you compare business electricity prices online, Value Added Tax is charged on business gas and electricity at a rate of 20%. But if your business uses less than 33 kWh and 145 kWh of gas per day or operates in an institutional, religious, academic or leisure industry setting, you could be eligible for a lower rate of just 5%.
The Climate Change Levy (CCL) is a governmental tax designed to encourage businesses to cut their emissions. It’s charged on a per-unit basis and renewable energy is no longer exempt.
When you compare business electricity prices and gas tariffs from different suppliers, you shouldn’t see a change in the amount you’re charged for VAT and CCL.
To find out more about VAT, CCL and how to lower your energy costs, call Property Price Advice today on 0800 980 2096 and speak to one of our energy advisors about running a business electricity and gas comparison.
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When you’ve decided what you want to do, we’ll set up your new contract and leave you to get back to running your business. Easy.
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