With the aftermath of lockdown and the looming recession businesses everywhere are looking for ways to cut costs however they can. Yet many are overlooking one of the easiest ways to save money – by finding a cheaper business electricity supplier.
But fear not, Wildfire Energy is here to help. We’ve put together a few tips for finding cheaper electricity rates that could save your business hundreds of pounds.
Start by talking to your current supplier
You wouldn’t believe how many businesses are paying the highest possible amount for their electricity simply because they committed the cardinal business sin of not setting up a new contract after their last one ended.
When your contract finishes and you don’t renew it or switch to another supplier you’re automatically moved to what is known as a deemed contract, which is often the highest rate you can pay for your electricity. Shockingly, around 10% of micro-businesses are currently on this kind of contract and many of them don’t even know it.
If it’s been a while since you last spoke to your supplier or you’re not sure what type of contract you’re currently on, make sure you give your supplier a call when you finish reading this blog post. Ask them what rates your business are on so you can find a suitable contract for your business.
Remember there are two main types of business electricity tariffs:
- Fixed-term tariff: This is when the rate you pay for your energy stays the same throughout your contract, which means you’ll be paying the same price per energy unit (or kilowatt hour ) no matter how much electricity you use. If you generally use the same amount of electricity every month (for example if you have a small office) then you’ll pay around the same price every month.
With fixed-term contracts, you get the stability of rates that don’t fluctuate, but you’ll usually have to stick with that supplier for at least a year or pay a fee if you decide you want to switch before your contract ends.
- A variable rate tariff is when your business electricity rates can go up or down depending on what your supplier decides. Changes usually occur when the electricity wholesale’s price shifts but this isn’t always the case.
While a variable rate contract is more flexible than its fixed-term counterpart, it’s also a lot riskier. You can end up paying a lot more for your business electricity month on month but if your supplier reduces their rates then you can save money too.
The type of tariff you choose will depend on how much stability you need when it comes to your business electricity and how much flexibility you’d like if you decide to terminate your contract.
We suggest you find out as much as you can about the price with your current supplier and search the market.
Which leads on nicely to our next point…
Cheaper isn’t always better
I know I know, you clicked on this post because you want to find a cheaper business electricity supplier. Be careful though. Even though an electricity supplier might look cheaper upfront, you can often end up paying a lot more in not just money, but time.
Try to do a little digging on the different electricity suppliers that are available for your business and look out for hidden fees or costs that might start adding up later on.
If you’re stuck in your current fixed-term contract and you don’t want to shell out extra cash by ending your contract early, you can still reduce your business electricity bill while you wait out your contract.
By reducing your electricity consumption
Because the cost of your bill is largely dependent on the amount of electricity you consume, an easy way to start cutting costs when you’re still within your contract is by finding ways to reduce the amount of electricity your business is using.
For a lot of businesses, especially those that consume a load of electricity every day, (like salons for example), this can seem like an easier said than done scenario but believe us it can be achieved.
Even the simple act of making sure all your equipment is switched off at the plug before you head off for the night can help you save pennies that can quickly turn to pounds.
That way when you’re finally ready to switch to a cheaper supplier you’ll end up saving even more.
If you’re feeling completely at a loss about how to reduce the amount of electricity your business consumes, completing a business electricity audit is another fantastic option. An expert will visit your business, assess how you use electricity then make suggestions about how you can reduce your costs and by how much.
This will not only help you to save money on your business’ electricity bill but will also have the added benefit of allowing you to run a greener business.
Speaking of green…
Green energy is quickly becoming one of the cheapest options for business electricity, and as we all fight the good fight against climate change, using sustainable energy will continue to rise.
In fact, according to Forbes, renewable energy is now one of the cheapest ways to generate energy. As the cost of sustainable energy continues to plummet, these savings will inevitably be passed on to businesses like yours.
So if you’re environmentally conscious or you want to save a little extra on your electricity in the long term, then you can switch to a 100% sustainable supplier, and rest assured that you’re doing your bit to reduce your business’ carbon footprint.
So there you have it, four ways to find a cheaper business electricity deal.
If all of this sounds like it’s too much hard work, we completely understand. One of the most frequent reasons businesses give for not switching electricity suppliers even when they know it will save them a tonne of money, is the belief that it’s more effort than it’s worth.
But it doesn’t have to be.
At Wildfire Energy, we’re all about helping businesses save on their electricity, and have made the process as simple as possible, so you don’t have to worry about sifting through dozens of quotes online. Our services are free too. Contact us today for a free and easy way to find a cheaper electricity supplier. Call 0345 466 7722 or email us on firstname.lastname@example.org.