Many small business owners are unaware they could be make huge savings on their energy bills just by taking a few simple steps. There are a number of things you can do to lower your business energy bills and here is a quick guide to get you started:
The first step is to check your business energy contract thoroughly. If you have taken out a business contract, you normally have an 8-week/56 day termination period before it expires. If you fail to do this, it can lead to a price hike as high as 40% and automatic renewal into the next contract. Once you have sent a formal notice of termination of your contract and received a signed confirmation and verification of termination on the expiry date, you can move onto step two.
Step two is to begin gathering quotes. Suppliers will bend over backwards to offer you the best deal to get you on board. It’s worth considering getting your contract in place over the summer months as often this is the time you can get the cheapest offers on electricity prices. Be sure to review your rates if you haven’t done so for a while. Prices are usually fixed, meaning that if the wholesale price of energy chances, your business energy bill shouldn’t. The result is that you will continue to pay less even if the energy price rises, but you could be paying more should the price of energy fall.
Business energy quotes are only valid on the day that you get them. So you may like to set aside an entire day to make these phone calls. Don’t expect your supplier to notify you of when your contract is due to expire and automatically renew, it is unlikely they will. So make sure you’re organised and prepared.
Alternative Savings on Business Energy Bills
When your contract has expired, or if you have just taken on a new tenancy you will be automatically put onto ‘deemed rates’. These rates, unsurprisingly, are excessively high. Start phoning around for some quotes quickly because you will be able to bring down the price as much as 70%. Paying on direct debit can save you an additional 2% or so too. Another benefit to paying on direct debit takes the strain off small business owners who might not have the time to spend queuing up in a post office to pay the paper bill.
If you’re a big energy user you may want to look into group buying as it is a great way to save money. You may require some expert advice to help get you the best price. Buying from suppliers who only use renewable energy sources make you exempt from paying the Climate Change Levy (CCL). The downside is that these tariffs may not be able to offer the lowest rates possible for your business.
For more information or advice, speak to Power Experts today for more ways a small businesses can save money on their business energy bills.