A lot of businesses want to keep their energy costs low. Unpredictable business electricity rates can cause problems with budgets, especially for companies that use a lot of energy. Businesses can not only lower their financial risks by being proactive, but they may also be able to save a lot of money. Below, we give you useful tips on how to get the best electricity rates for your business this year.

1. Understanding Business Electricity Rates and Contracts

A full understanding of your electricity contract is at the heart of keeping your energy costs down. Business energy contracts are usually very different from residential ones, so knowing the details could help you avoid surprises later on.

Get Electricity at Affordable Rates

Fixed-Rate vs Variable-Rate Contracts

With a fixed-rate contract, business electricity rates stay the same for the whole time the contract is in effect. This choice makes it easier to plan your budget because you know how much it will cost. But you won't be able to take advantage of price drops in the market.

Variable-rate contracts, on the other hand, change based on the prices of electricity at the wholesale level. It can be a good time to save money when prices go down, but it also puts your business at risk of price spikes.

Tip: Before picking a contract type, think about your business's energy needs and how much risk you're willing to take. Fixed-rate contracts are often a safer choice for companies that use the same amount of electricity all the time.

Length of Contracts

Electricity contracts can last anywhere from one to several years. Short-term contracts give you more options, but if business electricity rates go up, they could end up costing you more in the long run. Long-term contracts, on the other hand, keep prices stable but lock you in for a set amount of time, even if rates go down.

Tip: To avoid expensive 'rollovers', when a supplier automatically puts you on a high-rate default tariff after your deal ends, check your current contract. Mark the end dates of contracts and look over the terms for renewal early.

2. Comparing Suppliers for Business Electricity Rates

A single search for "business electricity suppliers" shows how many different choices there are. One of the best ways to get competitive rates is to compare suppliers.

Use Online Comparison Tools

Business energy comparison websites make it easier to find what you're looking for. You can see the business electricity rates from different suppliers side by side on these platforms, depending on the size, location, and energy use of your business.

Contact Suppliers Directly

Talking directly to suppliers can lead to custom deals that are perfect for your business. It can often lead to discounts that aren't available on regular comparison sites.

Tip: Don't forget about third-party energy brokers or suppliers that aren't as well-known. These companies often have new packages that are perfect for small businesses or niche industries.

3. Timing the Market

Electricity prices are always changing because of demand, wholesale costs, and events in other parts of the world and knowing how the market works can help your business get better deals when signing contracts.

Monitor Price Trends

Business electricity rates usually go up in the winter because people need more heat. When demand settles down in the spring or early autumn, signing contracts can often get you lower rates.

Lock in Rates Early

A lot of companies wait until the last minute to renew their contracts. Suppliers often take advantage of this urgency to stop negotiations. Start looking over your contract at least six months before it runs out.

Example: A small manufacturing company in the UK can cut its electricity costs by 25% by renewing its contract in early September, before rates go up in the winter.

4. Leveraging Energy Consultants

Energy consultants can be helpful partners if figuring out how to deal with the complexities of business electricity seems too hard. These experts are good at finding ways to save money, negotiating on your behalf, and making it easier to buy energy.

How Consultants Bring Value

• Market Knowledge: Consultants can get real-time market data, which lets them lock in rates when they are good.

• Tailored Plans: They can look at your business's energy use and suggest contract structures that fit with your operational goals.

• Better Negotiations: Because they have connections in the industry, they can often get better terms from suppliers than agencies that don't have any professional experience.

Tip: When looking for a consultant, look for ones that have clear, performance-based fee structures. It makes sure that their interests are in line with lowering your business electricity rates.

5. Implementing Energy Efficiency Measures

Cutting back on your overall use of electricity is one of the best ways to deal with rising prices. Businesses win because efficiency improvements lower costs and help them reach their sustainability goals.

Invest in Sustainable Technologies

Smart thermostats, LED lighting systems, and high-efficiency appliances are all relatively cheap investments that will save you money over time. For industries that use a lot of energy, installing renewable energy sources like solar panels on-site can be even more helpful.

Conduct Energy Audits

An energy audit finds areas of your business that are not working as well as they could. For instance, you might find that an old HVAC system uses a lot more energy than a newer one would.

Example: A hotel in the UK can save 15% on its electricity bills by completely upgrading its lighting and putting timer systems in place for the lights in shared hallways.

Engage Employees

Encourage workers to do things that save energy, like turning off equipment when it's not in use or lowering the thermostat when it's not in use. A lot of little changes add up to big results.

6. The Role of Renewable Energy

At first, renewable energy options were more appealing to businesses that cared about the environment. However, they have become more useful for companies that want to save money in the long run. Many suppliers now include renewable sources in their prices, and these prices are often competitive with those of traditional sources.

Advantages of Renewable Energy

• Price Stability: Changes in fossil fuel markets have less of an effect on renewable sources.

• Environmental Impact: Using green energy is in line with what customers want from environmentally friendly businesses.

• Possible Incentives: Depending on where you live, your government or local council may offer money to encourage the use of renewable energy.

Tip: Look at Renewable Obligation Certificates (ROCs) to see how green the supplier's energy really is when you're looking into renewable options.

Final Words

Electricity costs a lot of money for every business, but it doesn't have to be a problem. You can take charge of your business electricity rates by learning about contracts, comparing suppliers, timing renewals, hiring expert consultants, and putting energy efficiency first. These steps will not only keep your business safe from sudden price changes, but they will also give you the power to make smart, cost-effective energy choices.

The sooner you act, the sooner you'll not only save money but also feel better about your business. Take charge now and make the future more energy-efficient and financially stable.

Want to get a quote now? You can connect with us for customised electricity plans.