Finding the cheapest energy contracts is not difficult if you know how to find the right supplier. The Energy Strategy Delivery Unit (ESDU) provides this information to those companies looking to work with the energy supplier. The aim of these guidelines is to help companies to find the cheapest energy tariffs possible. These are designed for new companies that don’t yet have a fixed supply of gas and electricity, and which need to compare prices to find the best deal.
The price per kilowatt hour (KWh) that a supplier advertises is one of the most important factors in deciding whether a particular supplier is the cheapest. In order to find this out, check their quotation box below. This will display their wholesale costs. The wholesale costs will be arranged in this order: generation cost, installation cost, commission/dvd cost, and other additional charges. If you can make a note of what the suppliers appear to be charging for each of these, you’ll be able to quickly identify the supplier who is the cheapest.
Once you’ve decided on the best supplier for your needs, check whether they are offering a discount. If they are, then there are two ways in which you can get this discount. First, you can ask for an installation cost refund, which can be around 10% of the total cost. In order to qualify for this, you will need to buy either a natural gas or an electricity connection from the same energy supplier, and you must live in the UK.
Check the standing charge for gas and electricity separately. Some suppliers will offer a capped standing charge on certain domestic tariffs. You should only choose these contracts if you understand exactly how the standing charge works. For example, sometimes the standing charge will be capped at a fixed rate while the energy tariffs may vary, and it’s best to know the cap price for the gas and electricity that you receive. This is particularly important if you work out large sums, as a sudden increase in bills could be disastrous in some instances. It is possible to contact the British Gas representative to check if you’re eligible for a standing charge refund, but if you want to be sure of your eligibility, then you should apply online instead.
Compare the wholesale prices offered by each of the providers, and the best way to do this is to use a comparison website. Enter your data and then check prices with some of the top wholesale gas and electricity suppliers available in the UK. The amount of energy and the price of the service that you’re using will appear, along with the current market trends. The difference between the two prices should be highlighted, allowing you to choose the cheapest tariffs available.
Finally, you will usually be required to pay a small annual maintenance fee, which is not included in the energy tariffs that you are given at the start of your contract. The easiest way to avoid this fee is to select a supplier who offers a no obligation quote at the start of your business energy bill. This way, you can work out exactly how much it’s going to cost you and your business each year, and you don’t have to pay any up front fees. This ensures that if you do need to make a claim, you won’t have to pay any extra fees to get a replacement.