With a huge range of options available when it comes to business energy suppliers and contracts, it’s no wonder that many small business owners can begin to feel a little overwhelmed when it comes to making sure that they have got the best deal for their company. Your business’s utilities, particularly energy, can easily take up one of the biggest parts of your expense budget for each month, so it’s always good to know that you are not paying any more than you need to be for the service that you are getting. In this post, we’ve gone into a little more detail about the different types of contracts available, and what to do to make sure that you’re getting the best value for money in your UK business.
Fixed Rate Contracts:
Fixed rate contracts lock the customer into one rate for the duration of their contract. If you opt for a fixed rate contract, then you will be paying the same rate per kilowatt of energy each month until you reach the end of your contract period. This can often seem like an ideal option if you’ve found an exceptionally cheap deal, however, it’s worth bearing in mind that the fixed price will stay the same regardless of whether market energy prices rise or fall. This is often a suitable option for small businesses, as it prevents bills from fluctuating and allows them to easily budget for expenses each month.
Variable Rate Contracts:
What you pay on a variable or flexible rate contract will depend on market price fluctuations and third-party charge changes, so if you’re signing up to this type of contract, then you’ll notice that some months may be cheaper than others. Unlike fixed rate contracts, your business will not be paying the same rate per kilowatt of energy. This type of contract is often an ideal choice for companies that have a deeper understanding of the energy that they use and how their bills are calculated. Flexible tariffs allow businesses to buy energy as and when they need it, take advantage of market rates, and plan for highs and lows in energy consumption.
Getting the Best Value:
Many business owners make the mistake of simply going for the cheapest rates in order to cut costs as much as possible. However, whilst it’s certainly worth using business utility comparison sites to find a price that your budget can comfortably accommodate, bear in mind that it’s often worth paying a little bit more to take advantage of additional services and support offered. These can often offer additional benefits to your business that will save you time, money and resources. For example, a growing number of business energy suppliers are offering online services that customers can use to track their usage and bills. For businesses, regular access to this data makes it easier to implement changes when it comes to usage in order to drive bills down in the future.
Finally, don’t forget to check customer reviews and ratings before signing up to a business utility plan.