Small businesses can often be on the receiving end of huge energy bills. But did you know that with just a single, simple action, you could save yourself and your business a substantial amount of money year on year.
Many small business owners are unaware that when signing a business energy contract, there is an automatic renewal clause. This clause will tie you into a higher tariff for the continuation period, the cost increasing sometimes as much as forty percent higher – that’s 40%!!
The way to avoid this is to provide a written notification of termination, no later than 8 weeks before the expiry date. Once you’ve got confirmation from your supplier, you now have the chance to gather some quotes and compare prices, and with your termination date coming up, providers will be going out of their way to get you the best deals they can. Remember though, that quotes from energy providers for businesses are only valid for the day that they are given so act fast and grab the best deal you can.
You can always consult a registered energy broker, who can get you the best prices on business gas and electricity. Using a broker is simple. It’s not quite the same as using a price comparison service, as the broker will have an expert knowledge of the industry, and will broker deals with suppliers directly. Avoid price comparison websites, which are usually all automated. A specialist broker will be able to explain to you the nuances of the each tariff that they’d recommend, and the different ways in which you can save money. Alternatively, phone the supplier directly, as the salesperson is authorised to give you a much better deal than you could ever get online.
My top 5 tips:
Direct Debit is the cheapest payment method.
Group buying can be a cheaper option for you, if you use a lot of energy.
Using a provider who uses 100% renewable energy can make you exempt from the climate change levy but be careful, it might not always be the cheapest option!
Check your tariff now against other suppliers – you’ll be surprised how much cheaper some are
Sign up during periods of low demand, like summer; you’ll get the best prices.
Next week, I'll be bringing you part 2, with more things that you can do yourself, to save you money on your business energy bills.
James is a blogger and digital marketer, as well as a family man & dedicated father.