When is the best time to switch my gas and electricity supplier?
The commercial energy market is volatile and ever-changing. Suppliers regularly update tariffs and add new plans to reflect this. It is not advisable to allow contracts to roll on year on year. You could end up paying a significantly higher tariff than the market rate. Keeping on top of your energy bills, shopping around and actually switching supplier can seem like a lot of hassle. Especially when you have a million and one other things to worry about. But trust us, it’s definitely something worth planning into your business calendar if you would like to see a better bottom line.
How do I know if it’s time to switch supplier?
It’s easy to let the cost of utilities slip to the back of your mind. However, carving out some time to check your energy bill at least once a year could pay off in significant cost savings.
Here are some indicators that it could be time to think about switching:
You’re on an out-of-contract rate
You may unknowingly be paying an out-of-contract rate if your energy contract has come to an end, and you didn’t take steps to renew it. Out-of-contract rates can be as much as 50% more expensive than your standard tariff rate.
A recent investigation by the Competition and Markets Authority (CMA) found that 45% of small businesses were paying out-of-contract rates.
The rates you pay are not competitive
The market rates change regularly, and supplier offerings do too. New competitors frequently enter the market, driving further competition. The wholesale cost of energy constantly fluctuates. There are plenty of reasons that your current tariff with your current supplier may be out of date, and as a result, more expensive than it needs to be.
The task of comparing the kWh rate and standard charge across multiple suppliers can be a time-consuming endeavour, but often a worthwhile one. Also, keep in mind that you can consult an energy broker such as Eneco Consulting to do this for you.
You haven’t looked at new and smaller suppliers
It can often seem much simpler to go for a big-name supplier than spending the time researching smaller, unknown suppliers. However, you could be missing out. Smaller and start-up suppliers can offer excellent sign-up deals, often promote greener energy and can also offer a more personalised and responsive service.
When can I change energy supplier?
Your cancellation terms should be clear on your existing contract. Usually, you’ll only be able to switch when your contract comes to an end. If you choose to switch or cancel before this time, you may incur a fee.
Most business energy contracts do not offer a cooling-off period. This means that you probably won’t be able to change your mind once you have signed the agreement. So make sure that you are completely happy with the terms before signing.
How long does switching take?
It’s worth keeping in mind that switching business suppliers often takes a little longer than with domestic suppliers. This is because most domestic suppliers are signed up to the Energy Switching Guarantee, which promises customers hassle-free switching within 21 days.
For business, the process can take 4-6 weeks. It can take even longer if you are still under contract with an existing supplier or you don’t provide all the details needed for the switch.
Our energy consultants at Eneco Consulting can help you switch to the best energy provider for your needs. We will handle the process from start to finish ensuring a smooth transition. We can even, with your consent, terminate the contract with your current supplier on your behalf.
