Business Energy Contracts – What You Need to Know
Although most home solar energy systems last between three and five years during their initial phase of setup, business energy contracts tend to be longer. Whereas most residential energy contracts are typically for a one or two-year term, business energy contracts tend to be between five and ten years long. If you want to change vendors during this period of time, it can be very difficult. While you’re in a contract with your current provider, you will find it difficult to transfer to another provider while your current contract is still in effect. Therefore, it’s best to get into a solid contract before your business energy bill goes through the roof.
When you start a new business energy contract
you should find out what your tariffs are going to be. Make sure you ask for a standard rate and not a “bundle” rate. If you sign up for more than one provider, you may also be subject to multi-rates. While this may save you money initially, it could be harder to adjust your monthly bills if the prices from your suppliers go up. Instead of trying to guess what your suppliers will charge you, simply ask your provider whether they offer a standard rate or multi-rate program.
When you get a business energy contract
you could receive a fixed price for both gas and electricity. With these contracts, the price you pay is essentially the same for both gas and electricity. While this sounds like a better deal overall, if your gas prices go up, you’re stuck paying more money for gas. On the other hand, if your electricity prices go up, you won’t have any alternative but to pay the higher electricity prices.
When looking for good business deals
consider asking your local energy suppliers if they are offering any micro business contracts. The micro-business contracts usually last between five and twelve months, during which time you’ll be able to buy an average of two mains gas and one off-grid electric bill each month. The prices offered on these contracts differ, so it’s best to do a little bit of comparative shopping before deciding on what type of contract to buy. You’ll probably find that with enough looking around, you can find better deals than you would by going straight to your current suppliers, but it can still be worth the effort to find out whether your potential energy suppliers will be willing to offer you something better.
Your business energy contracts
may also include a commercial electricity contract. These tend to be much shorter than your normal domestic contracts, lasting between three and fifteen months. With these contracts, you only switch your supplier when you need to switch, instead of having to stay with your current supplier all the way through the duration of your contract. These tend to be more expensive than normal contracts because the amount of time it takes to change energy suppliers is longer, but if you use a lot of electricity in a short space of time (such as if you work in a factory that uses a lot of electricity to keep everything running), they could actually save you money over the long term.
One of the easiest ways to save money with energy business contracts
is to change your supplier every few years. If you change your supplier at least one time during your contract period, you’ll end up with a small saving on your monthly bills. Some companies charge a small fee for this, and it’s certainly worth looking into how this works. Some contracts don’t specify a cooling-off period at the start of your contract, so if you switch then the company you were using will send you a letter saying that they’re terminating your contract and sending you off to a competitor. If you were on a cooling-off period at the start of your contract, the company you were using won’t be able to tell you this and you’ll have to pay the whole remaining bill.