Commercial Energy FAQ
What are commercial energy contracts?
Commercial energy contracts are agreements between energy providers and businesses, lasting months or years, supplying businesses with the energy their facilities require. Commercial energy tariffs vary, and there is plenty of choice in the market.
How do commercial energy contracts work?
There is an important distinction between domestic energy contracts and commercial contracts. You may notice that commercial energy rates will be lower than those you are offered as a domestic consumer. Domestic consumers tend to buy energy on a monthly basis, whereas businesses purchase energy in bulk, to match the expected energy consumption over the length of the contract.
When’s the best time to switch commercial energy providers?
Switching or looking for a new commercial energy provider can prove more cost-effective, when carried out in advance of your current deal expiring. Your current provider may assume you wish to remain with them unless you explicitly state otherwise, and so they may automatically put you onto an out-of-contract plan, where the commercial energy rates could be much higher.
How do commercial energy deals vary in cost terms?
Deemed-rate and rollover contracts are at the high end of the cost range, and automatically result from not altering your deal before its expiry date. Both variants result in the most expensive level of commercial energy rates.
Fixed-term and variable rate contracts are cheaper, but for different reasons. Once you have agreed to a fixed-term commercial energy contract, you will be charged a fixed price-per-unit for the duration of your contract, with the final costs depending on your energy consumption. A variable rate, once negotiated with your provider, will see its total costs determined by fluctuations in market activity, rather than consumption.
How do commercial energy contracts differ from domestic ones?
A domestic energy contract can seem more generic and you can find more off-the-shelf tariffs that suit household consumption of energy. Commercial energy contracts are bespoke and tariffs will vary, so it is vital to understand your requirements and find the providers who are placed to service them adequately.
Can I get a dual fuel deal in my commercial energy contract?
No, you cannot pay for gas and electricity on the same quote, in a so-called ‘dual-fuel deal’. If you require both gas and electricity from a supplier, you will find they provide separate tariffs on both. Before taking out a new energy contract as a business, make sure to find the gas and electricity tariffs that suit your needs best.
How do I keep my energy bills low?
One of the best ways to keep a lid on energy bills for a business is to become more energy-efficient. Consider installing appliances like energy-saving lightbulbs or making sure your business property has adequate heating, as this can ensure that you waste less energy on heating it.