If you have a business, then there's no doubt that electricity is one of the main expenses on your budget. Whether you're a small company or a large enterprise, it's important to keep track of how much money you spend on energy and ensure you're getting the best deal for your needs. The following guide will help explain how to choose the right energy provider for your business and its needs:
Compare prices and plans
When comparing prices and plans, it’s important to look at all the details. In addition to the price and contract length, check out the plan details and restrictions. The more features a plan offers, the higher its cost will be, but you may find that some of those advantages are worth paying extra.
There are several things to consider when choosing an energy provider:
- Service quality: Whether you live in an urban or rural area, finding a provider that offers reliable service is important. If your home is in an area where power outages are common, be sure to choose a company with a record of keeping its customers up and running during storms and other emergencies.
- Customer service: If you have questions about your electricity plan, it’s important to find a provider that offers helpful customer service. Call the company to learn more about its policies and procedures before signing up so that you can avoid unpleasant surprises later on.
What do you need for your Usage?
Before you start looking for a new energy provider, make sure you know what type of usage you'll need. The amount and frequency of your usage will help determine how much energy you need to buy, how often it needs to be delivered, and the type of equipment needed.
This is because each company has different pricing structures depending on how much electricity or gas they sell. Companies can also offer special deals for businesses that use large amounts of energy per month by charging less per unit than for those who use less.
How do you want to pay?
When you’re looking for an electricity provider, you might find that there are several options to choose from. You may be able to pay monthly or quarterly, and your energy company might also offer other options. But if you want one of the best deals on your business’s electricity supply, there are some things to keep in mind when deciding how often and when you make payments:
- Monthly plans let you set up automatic payments so that your bills are paid off at regular intervals. This can help with budgeting and prevent late fees from building up, but it also means paying more over time than if you used a quarterly or annual plan.
- Quarterly plans allow businesses that don't use their full-service capacity all year round (like restaurants or offices) not only to save money but also avoid excess charges which would occur under other payment plans, such as monthly instalments where less than 100% utilization is common during winter months due seasonal fluctuations.
What is the contract length?
The contract length is the duration of your agreement with your energy provider. Options include 1 month, 3 months, 6 months and 12 months. Typically, 12-month contracts are the most popular option for businesses because they provide a predictable monthly cost that can be used to plan your finances more accurately. Some companies offer shorter contracts (1 or 3 months), which may be more suitable if you want to test out a new supplier without committing too long.
However, be aware that shorter contracts usually come with higher prices per unit than longer ones – so you may find yourself paying more overall if you opt for a 1-month deal instead of staying on an annual basis!
Which reference tariff should I use for comparison?
When doing a business energy comparison, you should use the same reference tariff for each comparison. This is the price you pay for your electricity, and it’s calculated by your supplier.
They should all be using the same reference tariff as this is a standardised price which should be the same for all suppliers. It’ll also reflect your location and business size (demand).
For example, if two companies have different pricing structures, but one is offering a lower price than another, they may both appear to be cheaper but actually, only one is correct when compared on an equivalent basis.
What are other key features to compare?
Other features to compare include billing and payment options, the flexibility of contract, technical support and customer service.
Since a business can't go without power for long, there are two things to consider when looking at providers: how much you'll pay as well as how easy it is to make payments on time. It's also important to ensure that the provider offers a variety of payment options so that you don't have any problems paying your bill each month. If possible, look for companies that accept online payments or offer automatic bill pay options to make the process seamless for both parties involved.
When considering a new energy provider for your business needs, be sure to ask about early termination penalties if needed before signing any contracts or agreements with any companies offering services you're interested in using with your business' electricity supply needs.
How green does your business need to be?
The first step in choosing the right energy provider is to decide if you want to buy renewable energy directly from a supplier or through a green energy marketer. Both have their pros and cons; it’s really up to you which route best fits your business needs.
If you choose to buy renewable energy directly from a supplier, you’ll be able to negotiate the best price for your business. However, this option requires more legwork since you’ll have to research different suppliers and find one that offers green energy in your area.
With so many options out there, it can be tough to choose the right energy provider. But with the tips we’ve shared here, you should be on your way to finding a provider that will work for your business and meet all its needs.