This is an important factor to consider when switching your business energy provider. To get the best deal, look for a new tariff during the spring and summer months when your business energy usage is lower. The reduced usage during these months will be reflected in your new deal, helping drive down your energy costs.
Plan Ahead: Don’t Wait Until the Last Minute
One of the biggest mistakes business owners make is leaving the search for a new business energy provider until the last minute. This can result in your current deal renewing, often at a higher cost. Start searching for a new deal a few months before your current contract ends. This will give you enough time to compare and find a more affordable tariff for your business.
Watch Out for Early Exit Fees
If you find a deal that offers a cheaper tariff than what you're currently paying, it's tempting to switch right away. However, before making the move, check whether your current business energy provider charges an early exit fee. If you haven't read the small print, you may end up worse off due to these additional charges.
Using a Business Energy Comparison Website
When looking for a new business energy provider, a business energy comparison website is a great place to start. It allows you to compare a wide range of quotes quickly, saving you time and effort compared to contacting suppliers individually. These platforms make switching easy and efficient.
Consider Contract Length Options
Before you sign a new energy deal, consider the contract length. Whether a 12, 24, or 36-month contract is best for your business will depend on your financial situation and the state of the energy market. Each business’s needs vary, so it's important to choose the contract length that aligns with your future plans.
Fixed vs Variable Tariff: Which is Best for Your Business?
A key decision when switching your business energy provider is choosing between a fixed or variable tariff. Fixed tariffs offer stability and predictable costs, while variable tariffs fluctuate based on the market. Consider your business's needs: does it require stable costs or can you handle the uncertainty of a variable deal?
Timing Your Switch to Maximise Savings
Chris Shaw, CEO at Utility Bidder, shares advice on the best time to switch your business energy provider: “Although it’s difficult to pinpoint the exact figure, many UK businesses have closed due to rising energy costs, especially in industries like hospitality and pubs. Business owners don’t have the safety net of a price cap like consumers do, which makes finding the most affordable deal crucial.”
“Before making the switch, businesses should factor in peak energy periods, early exit charges, and tariff options. If your business has higher energy usage in autumn and winter, it may be more cost-effective to switch during the spring and summer months when your energy consumption is lower,” Shaw added.
