What types of energy tariffs for businesses are available?
Finding the right business electricity tariff for your business's unique needs could help you save money, so it's always worth exploring what options are available to you.
Here are the most common business electricity tariffs that you will encounter when reviewing your energy supplier:
A fixed-rate tariff is when you agree on the rate you pay per kWh for a term between 1 to 5 years. The benefits of a fixed-term contract are that it will protect you against potentially rising energy costs. This is perfect if you know that electricity prices are low and want to lock in the price per unit.
It's also a great way to budget, as you can predict how much energy you will use and work out the costs from there.
Variable-rate tariffs, also known as flexible tariffs, do not lock the customer into an agreed rate per kWh. Instead, your rate will fluctuate with the energy market.
Unlike a fixed-rate tariff, you wouldn't be able to work out your monthly costs - this will depend on the market. This is great if energy costs fall, as you will be paying a much lower rate. However, there is always the risk of prices rising.
Variable-rate tariffs also mean that you are not tied into the contract as you would be with a fixed-rate term. If there is a notice period for leaving, it will usually be around 28 days. We recommend checking any end dates or notice periods before agreeing to a contract.
If you do choose a flexible deal, it is worth noting that you will have to keep an eye on the market in case of any changes that could dramatically impact your energy costs. This can create extra work, so you will have to weigh up your options carefully.
Rollover contracts come into effect if you have forgotten to cancel or renew your old energy contract by an agreed date. They automatically tie you into a new deal with the supplier.
Rather than cut off your supply, your supplier will instead move you to this different rate. These rates tend to be considerably higher than normal rates. If you have been moved on to a rollover contract, you may have to see out this contract until it ends.
It is always best to keep an eye on when your contract is due to end so you can renegotiate your terms or switch suppliers.
Rollover contracts are less common now but can still affect a contract that has not been cancelled following its end.
Deemed rate contracts are very similar to rollover contracts, the main difference being that you can leave these a lot more easily, usually with a short notice period.
You will want to make leaving a deemed contract if you find yourself on one a priority, as you will most likely be paying much higher prices than if you were to switch suppliers or negotiate a new contract with your current supplier.
How do I choose the best business energy tariff?
We've made it easy to find and compare business electricity prices by using our handy comparison tool.
This allows you to compare business electricity prices for your business. In under 60 seconds, we can find the best tariffs based on the information you provide us with.
We work with the best UK energy suppliers. Hence, we are in a position to offer you the best electricity deal we can. Whether you are looking for green business electricity or seeing how much we can reduce your electricity bills, it's easy to use our comparison tool.