Why compare business energy tariffs?
Not all business energy tariffs are created equal. If your business isn’t on the right type of business energy deal, you’ll definitely be overpaying for gas and electricity.
If you’ve never compared business energy deals and switched before, your supplier will have placed you on its more expensive ‘out of contract rates’, which can be twice as much as contracted rates.
What are out of contract rates?
Out of contract rates are a default tariff that your supplier uses when:
- Your current contract has ended and you haven’t arranged a new one with your existing energy provider or another supplier.
- Your switch to another energy supplier has been delayed, meaning there’s a gap between the end of one contract and the beginning of another.
The only way to avoid paying out of contract rates is to sign up to a new energy deal, either with your current supplier or a new one.
The simplest way to get an energy deal that meets the unique demands of your business is to let the tech-powered experts at Bionic do the leg work for you. We work closely with a selected panel of trusted energy suppliers, to make sure you get great rates and outstanding service.
And, unlike brokers and price comparison websites, Bionic uses smart technology to speed up the energy price comparison process, meaning we only need your business postcode to compare business gas and electricity tariffs and help you switch to a better deal.
Our experts will guide you through the whole energy comparison and switching process, but it always helps to have as much information to hand as possible in advance, including an idea of the type of tariff you want to switch to.
Before you start your comparison, it’s worth knowing that there are different types of business gas and electricity deals available, here are your main options:
Fixed term business gas and electricity tariffs
A fixed term tariff usually lasts between one and four years, during which time the unit cost and standing charges stay the same. Although your bills will still vary depending upon how much energy you use, the actual rates you pay are fixed for the term of the deal.
Fixed term deals are the most popular type of energy tariff for businesses, as they are an effective way to protect against price hikes, and the fixed rates can help with budgeting.
Switching with Bionic means you’ll never have to worry about being automatically rolled onto more expensive rates at the end of the term - we’ll keep an eye on your contract end dates and find the best deal for your business, year-after-year.
Blend and extend tariffs
These deals are a bit more complex than fixed rate deals, as they allow you to extend the length of your current contract with the same supplier, who will then reward your loyalty with lower rates.
This type of deal can help you cut the amount you pay for gas and electricity, and could be a good fit if your happy with your current supplier, but you’ll probably be able to get even cheaper rates by switching to another supplier.
Flex approach tariffs
If you run a larger businesses, it might be worth bulk-buying your energy in advance, so you know how much you’ve paid when it comes to using it. On a flex approach contract, you can take advantage of favourable wholesale rates by buying your energy for the months or years ahead, usually when costs are low.
Although this can save money over the long term, it can be a risky strategy that can see you out of pocket if you’re caught out of contract when energy prices are high.
Pass through tariffs
A pass-through tariff splits your bill in two between the wholesale energy costs, which is fixed, and the other elements that make up the unit rates, which vary. This means that things like Transmission Network Use of System (TNUoS) charges, National Grid levies and Feed-in Tariff charges can all change up to four times every year, the idea being that the supplier passes these non-commodity costs direct to you and the risk that these may increase over time.
These tariffs are more suited to educated buyers who don’t need as much price certainty.
What to consider when choosing an energy deal
Whichever type of tariff you choose, you’ll need to bear in mind that business energy suppliers don’t offer dual fuel deals - even if you agree a gas and electricity deal with the same supplier, these will still be two separate energy contracts.
And consider that the rates you pay will depend upon a number of factors, including how much energy you use, where your business is located, and its financial situation - a poor credit score could see you paying higher rates, as your business is seen as a higher risk.
The quickest and easiest way to find the best business energy deals is to speak to the tech-enabled human experts at Bionic. We can find the best business gas and business electricity tariffs for your business in a matter of minutes - to get started, let us know your business name and postcode at Bionic.co.uk, or give us a call on 0800 086 1326.