Choose an energy supplier
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The privatisation of the gas and electricity industries has
dramatically changed the way that businesses buy energy. The market has been
opened up to competition, encouraged by the regulatory watchdog Ofgem (Office
of Gas and Electricity Markets). Considerable savings can be made. With the wealth of suppliers on the
market, you should regularly evaluate your current energy contracts and decide
whether your business can reduce costs, increase efficiency and improve risk
management by changing suppliers. How easy is it?The process of switching
suppliers is relatively easy. After all, the end product is the same - it's the
same gas and electricity whoever your supplier is. Small businesses known as
designated customers also enjoy many of the safeguards that domestic users
have.Most difficulties that arise are to do with billing. However, with
suppliers vying for your business, you should not be charged for moving over.
In fact, the biggest consideration will be finding the cheapest option and the
best level of service. Planning and adviceMany small businesses are
missing out on potential savings of thousands of pounds because they think that
it is too time consuming to go through the process of gathering quotes and
comparing suppliers. However, with a small amount of planning and impartial
advice you can benefit from big savings!Identify your energy needs and your current levels of gas and
electricity consumption before you invite potential suppliers to quote. In
order to evaluate the quotes you will need to have some knowledge of market
prices.
Ofgem provides
impartial advice, while
BuyENERGYonline can manage the
process for you and get you the best quote. Find the best priceYour levels of consumption
will affect the price. With the opening up of the market, suppliers are tending
to specialise within markets, so some suppliers may prefer to deal with bigger
companies. Additionally, suppliers do offer different rates in different parts
of the country.Some energy companies don't distinguish small companies from domestic
users, because if you are running a small office your usage may be equal to or
even less than a domestic customer. You may also want to consider 'bundling'
your utilities from the same supplier; this may result in a 'dual-fuel'
discount. Some payment methods are cheaper than others, so you need to choose
the method that suits you best. The contractIf you decide to change suppliers
you will be asked to sign a new contract. You should check what your existing
obligations are with your current supplier before taking on another
company.Consider the future objectives of your company; if your business is
set for high growth avoid signing a long-term contract as your needs are likely
to change.
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