Businesses must keep overheads and costs to a bare minimum so that the remaining capital can remain utilized to fund more valuable business operations. Most times, companies are paying over-priced rates for utilities and are not even aware of it. A utility bidder can help you select the ideal energy supplier to satisfy your business’s energy needs.
Here’s a guide to understanding the thought process that goes behind selecting the best energy supplier for your business.
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How to Switch to a New Energy Supplier?
You can only shift to a new energy supplier when your current energy contract is close to expiring. At this point, you should begin searching for multiple options and start researching various suppliers and their rates. If you don’t prepare beforehand, you will be left with no other choice but to continue with your current supplier and pay the same over-priced charges.
In case you are unsure about the time your contract will end, don’t fret. Your energy provider will contact you for a contract renewal, one to six months before your contract ends. It’s the cue to start exploring your options.
You should start with shortlisting the best energy suppliers in your area and proceed to compare their rates with your current contract. If the rates are lesser, switching would be beneficial for you and would allow you to save a massive amount of money.
Once you have decided, let your current energy supplier know so that he sends you the final bill. You can now let the new supplier take care of the switching process.
However, it is crucial to keep in mind that there is a penalty fee for business energy contracts if you change your mind last minute and want to cancel the contract. So, this is a huge decision that should be made with proper consideration.
What is the Duration of Shifting to a New Energy Supplier?
After you’ve made the decision and formed an agreement with a new supplier, it takes around six weeks for the official contract to remain documented and all switching procedures to be completed.
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What Is Smart Metering?
A smart meter is an electronic device that sends hourly updates of your company’s power consumption to the supplier over the internet. Electricity and gas have separate gas meters.
The most significant benefit of having a smart meter is that you no longer have to worry about inaccurate reporting of power units and incorrect billing prices. You can monitor the power consumption at all times. Moreover, the supplier does not have to come to your property to read the meter and would instead get the meter details over the internet.
In addition to this, you can monitor times of peak energy consumption. Many business tariffs have varying rates for evenings, late nights, and weekends. You can conveniently align your power usage times with this information, and hence, reduce billing prices.
How to Choose the Ideal Tariff?
There are two types of available tariffs: fixed-term tariffs and variable rate tariffs.
As the term suggests, fixed tariffs involve a fixed amount of payment for the whole term. No matter the price fluctuations in energy rates. You will remain required to pay the fixed rate agreed upon in the energy contract. One primary advantage is that you will remain protected against any increase in rates. However, it is essential to mention that fixed-term tariffs exit fees are pretty high. And most tariffs do not have any exit plans, so you’ll have to complete the whole term.
In variable rate tariffs, rates depend upon the prices in the energy market, so whatever fluctuations that occur in the wholesale energy market will also apply to your energy rates.