How do I choose a good Energy Supplier and find the right contract?
It can be a minefield when it comes to choosing a good energy supplier for your business, with more energy suppliers to choose from how do you make the right decision? Here are a few simple ways to make the process simpler and easier.
Top criteria for your selection process
- Which supplier is offering the best rate?
In your selection process in choosing an energy supplier, you should look at which supplier has the lowest rate. Having a recent energy bill to compare what you are currently paying for gas or electricity against what the supplier is offering is a great start in your selection process.
- What contract length works best for your business?
Energy suppliers offer a full range of contract lengths. These contracts range usually from 6 months to 60 months as a standard, don’t forget that bespoke end dates can be arranged if you want to look at aligning your contracts. Dependant on the wholesale market sometimes longer term contracts can be more cost effective than shorter alternatives, due to many factors (I will be writing a blog specifically on this subject soon), but don’t forget to factor in your time!
- What contract type works for your business?
There are different contract types varying from fully fixed contracts to partial or fully pass through contracts. Each supplier has slightly different names for each contract so it can be confusing, but the underlying factor is establishing whether your costs are fixed for the contract period or not! Its not to say that either are cheaper parse, you must factor in your consumption when looking at standing charges, those with very low consumption can often be better off with a higher unit rate.
- What terms and conditions are the best?
It might be fine selecting a supplier that offers good rates and the contract length you want, but what happens when it comes to the terms and conditions?
You need to look out for excessive late payment fees, being penalised for over or under consuming the energy consumption you are contracting and other charges that may not be included in your unit rate. If your planning any energy efficiency projects that will reduce your energy consumption drastically then look out for take or pay!
So once you have satisfied yourself with all of the above credentials. Looking at supplier reviews can be a good indication of service levels and will give you the most recent comments and concerns experienced by their current customers.
- Most important of all……Get a team on your side!
To simplify the whole process a good energy broker will be able to provide you with the knowledge needed to make that informed decision and advise you on every aspect of choosing the right energy supplier and contract for your Individual business needs.
As a broker we are very selective when it comes to the energy suppliers we work with, and whilst we work with a full range of suppliers ranging from the big six to some suppliers that only work with brokers, there are still a few that do not meet out strict accreditation process.
We regularly assess our suppliers based on rates, customer service, supplier terms and conditions and general reliability and position in the market. As this is an ongoing process it gives you the peace of mind of only being placed in contracts with reputable companies.
No one wants to be placed into a cheap energy contract only to find 6 months later that the supplier has gone bust, energy prices have gone through the roof and you are left with no alternative other than to sign a new contract at a lot higher rates.
For further information and find out which energy supplier would be a good fit for your business please contact our energy experts on 01158965460.
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