Even for the most experienced of entrepreneurs, business energy contracts have the potential to be very confusing. Due to the increasing energy prices and with energy forming a large part of many businesses spending, it is important that they are on the correct contract. Being on the wrong one can potentially be disastrous for a business – costing them much more than it should do.
In order to help clear this up for businesses up and down the country, we have put together this useful guide on how to understand energy contracts.
Moving into a new building or buildings
The process of moving into a new office or warehouse can be a long and drawn-out one, with many different things to consider, including a new business energy contract.
Before moving into a new workspace, it is important that businesses give their energy supplier a minimum of one month’s notice of the move, supplying them with the address of the new premises in the process. This helps to speed up the process of switching energy suppliers. However, where this is still not fast enough, there is something called faster switching. To find out what is faster switching, visit the link.
Putting together an energy strategy
In order to effectively manage costs, businesses should create an effective energy strategy. This is because the price of energy can fluctuate, along with usage quantities and so it is a cost that needs to be managed strategically.
An effective energy target will aim to minimize risk, whilst also simultaneously improving the resilience and value of the business as a whole. Most businesses do not have a specialist person looking after these types of things so it is either left to whoever is in charge or managing the utilities, or failing that the owner themselves.
However, if an entrepreneur does not feel up to managing this task all by themselves, there are a wide variety of procurement specialists that exist who can help you with this exact thing. They will get to know a business, understand what its needs are, and then obtain several quotes on its behalf, all whilst keeping things in line with the strategy.
Choosing the right energy contract
As previously mentioned, it can be difficult to determine which exact energy contract is best for a particular business. This is why it pays to do some in-depth research, as this really can help to make a difference in regards to using less energy and saving money.
Business energy contracts are different in that business owners have to search around for individual quotes from both electricity and gas suppliers. These are then put together and named dual fuel packages. There are some suppliers out there that will offer a preferential deal in order to secure a contract for both of these utilities.
When making the right choice on what contract a business decides on, it is important that the correct amount of research and due diligence is done. Failing to do this could be a costly mistake.
