Business Energy Switching : How Is Business And Domestic Energy Different?
If you have a small-to-medium-sized business, the cost of gas and electricity is likely to put a major dent in your monthly expenses. This is especially the case if your business is based on manufacturing or production and uses a lot of power.
But every type of business wants to pay as little as possible for its energy bills. And that means searching the market for the cheapest supplier and tariff. Find out everything you need to know about doing this with our Q&A.
Q. How is business and domestic energy different?
A. Energy supplied to businesses comes through the same wires and pipes that service our homes and also comes from the same energy providers. That’s the ‘Big Six’ (British Gas, EDF Energy, E.ON UK, npower, Scottish Power and SSE) as well as a growing number of smaller suppliers, which help to keep the market competitive.
But there are some differences in the way you pay for energy as a business. Typically, you will enter into a fixed-term contract with your supplier, which can be as long as three years. During this time your energy price won’t change. At the end of the contract you can choose to switch supplier, negotiate a new deal with your existing supplier or roll onto its variable tariff – although this is an expensive option.
If you move into a commercial property and start using power without agreeing a contract, you’ll be automatically placed on the supplier’s ‘deemed’ contract which, according to energy regulator, Ofgem,…