Published on 01/11/2018
Calculating and keeping a close eye on cash flow is essential for any small business. But energy costs are often taken as a given, with no focus on reducing this significant outlay. This is especially important for start-ups, where every penny counts. Besides just saving money, a move towards energy efficiency can help make your business more sustainable and environmentally-friendly.
Although all businesses plan for energy costs, they are often seen as a fixed expense that’s just a fact of life. But with a market that seemingly rises year-on-year, it’s important to spend time searching for the deal that will save you the most money. There are a number of issues that you can run into, should you just accept the contract you are given when moving into a new commercial space.
Negotiating a new contract is a relatively simple and quick task. But almost 40% of businesses have never done it. They simply allow the contract to renew at an increased rate every year, or even worse, move onto a default tariff with significantly higher rates.
Moving in to a new property can be stressful and checking your new gas and electricity contract is usually pushed to the back of the queue. Don’t make the mistake of assuming that everything is ok because the lights are working.
Find out who your supplier is straight away and instruct them to put you onto a fixed contract. If you do not know your supplier, contact a broker and have them negotiate a new deal on your behalf. If you don’t find out, you’re likely to be paying more for your energy than you need to.
You will be sent periodic reminders when your current tariff is up for renewal. These should be checked carefully as your rates may increase when compared to your current billing. Before undertaking any automatic renewal, you should contact a broker or other energy suppliers directly.
Switching your business energy account takes no action on your end after confirming your new supplier and giving your current supplier written notice. There will be no disruption in supply or any physical changes to be made in your property. Your new supplier will take care of everything from their end.
You cannot have two business energy contracts active at the same time. If you have told your current supplier that you are terminating, you must have a new supplier lined up to take over the supply. If not, you may be placed on an out of contract rate. This will be much more expensive than your current tariff.
HUB can help you to reduce your business energy bills. Get in touch today to find out how much you could save.