There are 11,000 different energy tariffs for small businesses, depending on your supplier, postcode, credit score, consumption, length of contract etc. However prices aren’t published which makes shopping around a real chore (not to mention what damage it does to your ‘credit footprint’), brokers aren’t regulated so tend only to offer the tariffs that reward them with the greatest commission. The suppliers themselves are saddled with the world’s worst reputation for customer service and are masters at locking businesses into expensive contracts by only offering the chance to switch in narrow ‘renewal windows’ that quietly open and shut mid contract. So here are our top ten tips for getting on – and staying on – the best business gas prices.
1. Understand Tariffs
Commercial gas prices for small businesses consist of a fixed unit rate, ranging from around 2p to 6p per ‘kilowatt hour’ (kWh) and usually a standing charge (from 5p to £1 per day). Commercial gas prices are also subject to two types of tax, firstly the Climate Change Levy (CCL) which has been revised several times since it was introduced in 2001 but for commercial gas currently stands at 0.164p/kWh and secondly via VAT.
2. Know Your Supplier
If, for example, you are new to a property and don’t know who your current supplier is, try Exoserve (0870 608 1524) which is jointly owned by the five major gas distribution networks (National Grid Transco, Northern Gas Networks, Scotland Gas Networks, Southern Gas Networks and Wales & West Utilities). Alternatively Make It Cheaper can usually find out for you while you are on the phone (0800 970 0077) and give you a business gas and electricity price comparison at the same time.
3. Locate Your MPR
You will also need to know your 10 digit meter point reference number (MPR) which is usually printed on a bill or, again, is available by calling Make it Cheaper who can look it up for you. This number can unlock information about your consumption, your supply area and what the cheapest business gas prices are available to you at the time of your call.
4. Contract End Date
Before you can switch to the cheapest commercial gas prices, you will need to serve notice on any outstanding contract you have in place. Unless you are out of contract (eg new to property) you’ll need to do this in writing well ahead of your contract end date. Either call your supplier and ask when this date falls or use the free Make It Cheaper contract checking service which will establish your current contract business gas and business electricity positions on your behalf.
5. Open Renewal Window
Once you have your contract end date, you will be able to work out when your renewal window opens so that you give the right amount of notice. Be warned though, this can be as much as 120 days before your contract is due to expire. Our Window Checker or one of our phone based advisors can help plus provide you with a template notice letter to send to your supplier.
6. Get Impartial Quotes
With 11,000 tariffs and the difference between the cheapest and most expensive commercial gas prices being threefold it makes sense to get some help. Armed with the right information about your business (usually all contained on a bill from your supplier), you can get quotes over the phone. Use a price comparison service if you don’t want to shop around and protect your credit score from the potential damaging ‘footprint’ caused each time you request a quote. They must, however, meet two important criteria: total impartiality and rates from across the whole of the business energy market.
7. Find Your Consumption
One important variable to determine the best business gas prices for you is your Annual Quantity, or AQ. This is an estimate of future consumption of commercial gas at your property, based on historical consumption and is calculated by the distribution network, National Grid Transco. Again, we can get this figure for you while you are on the phone to us.
8. Choose Contract Length
In addition to your AQ, other variables that determine which commercial gas prices each business is eligible for include: geographic area, payment method, company credit score and the length of contract you choose from one, two or three years. As with a mortgage, the rates go up for longer fixed periods but will give you greater certainty in a time of wildly fluctuating wholesale prices.
9. Verbal Contract
If you would like to accept a business gas or electricity quote, you can usually enter a verbal contract which is a five minute script read to you over the phone with questions interspersed to make sure you have fully understood. These contracts are deigned to make your life easier, rather than trick you into ageing a contract you didn’t want. Steer clear of anyone who doesn’t make it abundantly clear to you that they are entering you into a verbal contract and recording the conversation.
10. Stay Savvy
Staying on the best rates relies on being in position to switch again at the end of a contract – ie having served notice. As such we will get back in touch during your renewal window to advice on dates and the best available business gas prices going forward. None of this costs you a penny, not even the phone call and our advisors are at your service Monday to Fridays 8.30am to 6pm.
Author Resource:
Make It Cheaper, the UK's leading independent price comparison and switching service for business electricity & business gas. Contacts For interviews, images or comments contact: Jonathan Elliot Marketing Manager http://www.makeitcheaper.com 0800 970 0225
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