Why switch business gas supplier?
If you’re content with your current business gas provider then you may wonder: why bother switching? Why fix what isn’t broken? Your main prerogative should be that prolific mantra: switch to save.
We’ve consistently found that switching unlocks better and cheaper energy deals. From insurance providers to phone tariffs, across the board the trend still stands that you’ll likely find better deal if you shop around. And it’s no different for business energy.
But there may be other forces at play. As global concern for clean energy sources increases, more companies are assessing their investment in renewable or green programmes. And that extends to their energy supplier: perhaps switching providers might better support your company’s ethos?
You may find some providers are better set up for commercial energy customers than others. Larger companies can often access better bargains due to guaranteed usage, while some providers may only service businesses of certain sizes. While switching household providers can save you hundreds per year, choosing the right business gas provider can save you thousands.
What tariffs are available for business gas?
There are a handful of business gas tariffs available, but fixed-rate tariffs are, by long way, the most commonly used by businesses. Here are the tariffs available:
- Fixed-rate tariffs – these typically last 1-3 years. Your energy supplier will fix a rate you pay for your gas supply, so you know exactly what’s in your business’ outgoings each and every month: great for staying on top of budgets.
- Variable-rate tariffs – The gas market is huge, and wholesale prices of gas can fluctuate. Variable-rate tariffs mean you’re billed with respect to the cost of gas at that time, which is influenced by all manner of global events. So, for businesses it’s harder to plan exact spending: you could grab a bargain, but you could also end up paying over the odds.
- Eco-friendly tariffs – unlike business electricity, business gas unfortunately hasn’t come quite so far in the green space yet – but watch this space! Gas sourced from renewable sources, like plant or animal waste, is currently less ubiquitous but you could strike gold and find a great eco-friendly gas tariff for your business.
- No standing-charge tariffs – tariff prices generally consist of the cost of the energy you consume plus a standing charge: this is the flat fee you pay to actually have access to energy in your premises. But some business energy deals offer fixed-rate tariffs without a standing charge, meaning you only pay for the energy you consume, all at a pre-agreed rate. Consider switching to a provider that offers this if your business has a low gas usage; it’s a great way to save money on your energy bill.
What affects business gas prices?
Gas prices can fluctuate considerably. Long before you look for business energy quotes, gas prices are given a wholesale value; this can depend on anything from global politics to supply and demand. Variable-rate tariffs are directly impacted by these changes, meaning you could see noticeable differences in your unit price each month. Consequently, many businesses tend to choose fixed-rate tariffs to safeguard against increases and unpredictability.
Once you come to compare business gas deals, your quote will be calculated by a range of variables. The location of your business plays a role, as does the size of the workforce and premises. Prices will also vary with what meter you have installed, as well as your tariff type.
Lastly, most suppliers offer both a day rate and a night rate for energy; we advise considering your operating hours to see if there may be a plan better suited to the needs and scope of your business.
How to Switch Business Gas Providers
Once you’re set on switching energy providers, then you’ll need to gather some information to get the ball rolling. Have clear details on your business’ energy consumption, current bill and when your contract is due to expire. Usually you can only begin the switch between one and six months before your expiration date, depending on the provider.
Compare business energy deals and select the best gas deal for your company – you’ll need to call around to get specific quotes. Once chosen, contact your new supplier to get the relationship started! They’ll take care of everything, from notifying your current provider to completing all the administration that comes with a transfer. All you need to do is take a final meter reading for your new provider.
When your current contract expires, you won’t even notice the switch: it’s seamless. You’ll be instantly ready to start enjoying those savings and investing your extra cash back into your business.