Searching for business energy quotes can be time consuming and frustrating. But with the recent hike in energy prices, it’s even more important to ensure you’re on the right tariff.
Here are some things to consider when choosing a new business energy deal.
When choosing between multiple business energy quotes, price is naturally going to be an important factor. But cost alone isn’t always enough to determine whether you’re getting a good deal. So if you have a number of quotes that are similar in price, the following factors may help you narrow down your choices:
- Does your company have a carbon emissions target? If so, which of the tariffs are most likely to help you meet your goals?
- Is your chosen supplier in a financially stable position? When suppliers go out of business, customers can end up on expensive out-of-contract rates.
- Does the supplier charge for smart meter installation?
- Do all the quotes you’ve received provide a true cost comparison?
A true cost comparison is the process of comparing quotes based on all charges, not just the cost of your actual energy.
Sometimes, when you receive a quote, the initial cost breakdown will only include commodity charges. In order to make a fully informed decision, you’ll need to factor in both commodity charges and non-commodity charges.
Commodity charges relate to the cost of your energy. This will be shown in the form of both a unit rate (the cost of each kWh of energy you use) and a standing charge (a daily amount that stays the same regardless of how much or little energy you use).
Non-commodity charges, on the other hand, relate to the cost of delivering your energy. Even if you’re on a fixed-rate tariff, non-commodity charges can change. It’s important to factor them in when comparing business energy quotes.
Domestic energy customers can hop onto a price comparison site and have a number of quotes within minutes. However, the process for obtaining business energy quotes is usually a bit more complicated. For a start, energy prices are subject to regional variations, so if you have more than one site, you’ll need a bespoke quote that takes into account all your locations.
Online price comparison tools also display pre-loaded indicative prices, so when you come to selecting your preferred tariff, the deal you wanted may not materialise.
This leaves you with two further options – contacting individual suppliers yourself, or using a third party consultancy to find you the right tariff. A consultancy will do the legwork for you, which, given the complex nature of the business energy procurement process, could save you a significant amount of time. They may also be able to negotiate with suppliers on price, and will use their knowledge of the market to pinpoint which of their suppliers is most likely to meet your needs.
Many suppliers will take a couple of days to come back with prices, by which time the other quotes you’ve obtained may be out of date. If you’re using a consultancy, they can quickly refresh all quotes, so you know you’re looking at up-to-date figures.
To find out more about the benefits of procuring your energy through a consultancy, check out our Business Energy Procurement Guide. If you’re looking to switch your energy, or simply want some advice on your options, get in touch.