It's always hard for a startup or small business owner to keep their overhead costs under control. Energy bills are one of these costs that can be surprisingly high and hard to predict. Getting the best energy deal isn't just about keeping the lights on; it's a smart move that can have a big effect on your bottom line, freeing up money to put back into growth, new ideas, and hiring new people. This article will tell you everything you need to know to get the best energy deals for your UK-based business.

We'll talk about why small businesses are worried about energy costs and how to compare the best energy deals. You will learn about the different kinds of tariffs, how to get better rates, and useful ways to cut down on your overall consumption. By the end, you'll have a clear plan for how to cut down on your business's energy costs.

Why Energy Costs are a Critical Concern for SMEs

Every pound matters for new businesses and small to medium-sized businesses (SMEs). Small business owners often have to do a lot of different things at once, so they may forget to take care of their utilities. This is different from big companies that have separate teams for buying things. But forgetting about your energy contract could cost you a lot of money.

High energy costs cut into your profit margins right away. A sudden rise in prices can mess up cash flow, making it harder to plan for other important costs like payroll, marketing, or inventory. The energy market in the UK has been very unstable in the past few years, which has led to bills that are hard to predict and often sky-high. This instability is a big risk for a new business.

Also, being on the wrong tariff could mean that you are paying a lot more than you need to. When a business's first fixed-term deal ends, it is automatically put on expensive "out-of-contract" or "deemed" rates. These rates are usually the provider's most expensive and don't guarantee a price. You can avoid these extra costs and take charge of a major business expense by actively looking for the best energy deals.

How to Compare Best Energy Deals Effectively

It's harder to compare energy deals for a business than for a home. The way the market works is different, and the information you need may be different, too. Following a structured plan will help you get through the process and get the best deal.

1. Gather Your Information

You need some important information from your current energy bill before you can start comparing. This is what lenders and suppliers will need to give you an accurate quote.

MPAN and MPRN:

Your electricity Meter Point Administration Number (MPAN) and your gas Meter Point Reference Number (MPRN) are unique numbers that identify your supply points. You can find them on your bill.

Current Supplier and Tariff Name:

It helps new suppliers understand what you're moving away from.

Contract End Date:

It is very important. You want to switch because your current contract is about to end, and you don't want to pay early termination fees. Most suppliers let you make a new deal up to six months in advance.

Annual Consumption:

The most important thing for an accurate quote is how many kilowatt-hours (kWh) of energy you use each year. You can usually find this information on your annual statement or on recent bills.

2. Understand Business Energy Tariffs

There are different types of business energy tariffs, each of which is best for a certain need.

Fixed-Term Tariffs:

These are the most common and are the best choice for most small and medium-sized businesses. For a set amount of time, usually between one and five years, you lock in a set price per kilowatt hour (kWh) of energy. It keeps prices from going up and makes it much easier to plan your budget. The bad news is that you won't gain anything if prices go down.

Variable-Rate Tariffs:

The price you pay for each unit changes with the wholesale energy market. When prices are low, it can be helpful, but if prices go up, it puts your business at a lot of risk. They are flexible, but you can't always count on them like you can with a fixed deal.

Deemed and Out-of-Contract Tariffs:

If you move into a new place without signing a contract, you'll be charged a "deemed" rate. If you don't switch or renew when your fixed term ends, you'll be charged a "out-of-contract" rate. Both are usually very expensive and should be avoided.

Green Energy Tariffs:

These tariffs make sure that some or all of the electricity you use is matched with purchases of renewable energy. It is a great choice for businesses that care about the environment and can also help your brand's reputation.

3. Use Comparison Services and Brokers

You can get in touch with suppliers directly, but it takes a lot of time. Brokers and business energy comparison sites do the hard work for you.

Comparison Websites:

You can enter your business information once on these sites and get quotes from a lot of different suppliers. They make it easy and quick to see what's out there.

Energy Brokers:

A broker offers a more personal service. They will talk to you about your business needs, get quotes for you, and handle the process of switching. It can be very useful for businesses that have more complicated energy needs. Make sure to ask how they are paid, because most of them get a commission from the supplier, which is included in your rate.

Negotiating Better Rates and Terms

Business energy prices aren't set in stone like they are in the home market. There is often room to negotiate, especially if your small business is a little bigger or your contract is up for renewal.

Start Early

Don't wait until your contract is about to run out. Start looking for suppliers or brokers and doing research 3 to 6 months before your renewal date. It gives you time and power to find the best deal without feeling rushed.

Have a Benchmark Price

Use a comparison site to find out what the best rates are right now for a business of your size and consumption. It gives you a price to work towards in your negotiations.

Don't Be Afraid to Haggle

When your current supplier offers to renew your contract, don't just say yes. Tell them that you have quotes from other providers that are just as good. To keep your business, they will often make a better offer.

Leverage Your Loyalty (or Lack Thereof)

If you've been a loyal customer, ask for the best energy deals based on how long you've been a customer. On the other hand, if you're ready to switch, let them know. The fear of losing a customer is a strong tool for negotiating.

Practical Tips for Managing and Reducing Consumption

Getting the best energy deals is only half the battle. The least expensive energy is the energy you don't use. Taking steps to save energy can save you a lot of money in the long run.

Conduct an Energy Audit

To begin, figure out where your energy is going. You can do a simple walk-through audit on your own by looking for clear signs of waste, such as old, broken equipment, bad insulation, or lights left on in empty rooms. If you want a more in-depth look, you might want to hire a professional to do an energy audit.

Invest in Energy-Efficient Technology

You can reduce you bill by investing in energy-efficient devices and technology.

LED Lighting:

One of the quickest and most effective ways to lower your electricity bill is to switch from regular incandescent or halogen bulbs to LEDs. LEDs use up to 80% less energy and last a lot longer.

Efficient Equipment:

When you need to buy new office equipment, kitchen appliances, or machinery, look for ones with high energy-efficiency ratings. The cost up front may be a little higher, but over time, the money you save on your bills will pay for it.

Smart Thermostats and Controls:

Install smart or programmable thermostats so that you only heat or cool your home when you need to. Zoning controls can also help because they let you set the temperature in different areas separately.

Foster an Energy-Conscious Culture

Your employees can help you save energy more than anyone else.

Educate Your Team:

Simple reminders to turn off lights and equipment when you're not using them can help a lot. Tell everyone about your goals to save energy and celebrate when you reach them.

Power Down:

At the end of the day, push for a "shutdown" policy that makes sure all non-essential computers, monitors, printers, and other equipment are completely turned off, not just left on standby.

Optimise Heating and Cooling:

Set clear guidelines for thermostat settings. Changing the temperature by one degree can lower your heating bill by as much as 10%.

Final Words

With the best energy deals, you can take charge of your business's energy costs, and it will pay off. It helps your organisation stay open longer, protects your cash flow, and makes it more profitable. To begin, find your last energy bill and note the date your contract ends. Set a reminder for six months before your current deal ends to start looking for a new one. Take that time to look at different suppliers, get quotes, and get ready to haggle. In the meantime, use the low-cost tips above to start cutting back on your energy use right away. You can make sure your business is getting the best deal for its needs by being proactive and strategic.

Are you looking for the best energy deals for your business? Just contact us for a perfect plan.