It is crucial to find a supplier that offers competitive rates when searching for a supplier for your company. In most cases, these costs depend on the type of energy provider you choose. Some suppliers provide fixed rates, whereas others offer variable rate rates. The kind of contract you select will determine the amount you pay each month for electricity.
Standing charge
It is essential to look at the prices and providers for commercial electricity if your business requires power. If you’re looking for an energy contract for the first time or you need to renew an existing one it is essential to get a competitive deal. This is best done during the renewal window, that is between one and six months prior to the date the contract expires. You may also wait for the renewal offer from your current supplier, which will give an opportunity to compare.
Contract length
The duration of your electricity contract will have a major impact on the price of electricity for your company. For instance, a 24-month fixed price contract could be more affordable than a 12-month one. A longer term contract can also protect you against rate increases in the second year. Talk with a sales representative to determine the most suitable length of contract for your company.
Variable rate tariffs
Variable rate business tariffs are contracts in which the unit rate is determined by the market. For instance, if the business is using electricity, the energy company will tell you the cost they will pay per kWh, but this price may not be exactly what you pay. The company is not bound to honour that price. Prices tend to rise during colder weather seasons due to the an increased demand.
No cooling off period
You should ensure that your electricity provider does not offer a cooling-off time in the event that you decide to change your business’s electricity provider. In some cases, switching providers could lead to a 250% increase in cost. If compare business electricity is the case it could be worth paying more to receive better customer feedback.
No late termination fees
An Early Termination Fee is among the most unsavory aspects of a contract. These fees are usually charged to you by the payment processor in the event that you decide to end your contract before its term is over. While they are generally fair and are often necessary in the event of early termination, they can leave you with a large cost.