Deemed-rate - This also know as an out of contract tariff. This will be a rolling contract with the most expensive rates arranged by the suppliers. Businesses can find themselves on deemed rates if they have not formally agreed a contract with their supplier. Around 10% of micro-businesses are on deemed contracts. It’s vital that they are aware that prices on these contracts are on average 80 per cent more than rates charged in a negotiated contract according to Ofgem .
Rollover contract – This may happen when a business does not negotiate a new contract. The business will be signed in for another year and the supplier will charge their moist expensive rates, so should always be avoided. Sustainable Business Services can negotiate contracts up to 12 months in advance to ensure this does not happen.
Fixed-rate tariffs – The simplest, conversely most common option for most businesses. Particularly popular when market prices are low, enabling lock in of cheap prices for several years that can provide great long-term savings, budget certainty and protection against price increases.
Variable-rate tariffs – Flexible tariffs that move with the market, your unit rates change according to market moves throughout the contract, thus taking advantage of price decreases. A consideration if you come to review costs when the market rates are particularly high, and you do not want to commit long term. These contracts can be cancelled with 30 days’ notice.
Half Hourly Meters – Half hourly electricity readings are mandatory for UK businesses that us at least 100,000 kWh of electricity per year. These meters measure and record consumption automatically through automatic meter readers (AMR). Regulation mandates that these meters are read half hourly, throughout the year.
Multi-Site Meters – Consolidating services has its own internal business benefits through reduced cost of management. Multi-site meters work to support this through taking an additional layer of difficulty out of switching and managing energy contracts. All sites can switch at the same time along with providing you more buying power to secure better rates for your business.
Green Energy Tariffs – Green energy tariffs, sourced from renewable energy sources, reducing dependency on the grid are more commonplace across all suppliers. Green tariffs do not always cost more than standard tariffs and Sustainable Business Services will always present a Green option as part of our recommendations, where available.
How to find the cheapest electricity prices
Energy companies rely on inertia, much like water and insurance companies. There is no reward for customer loyalty. Enticing new customers from their competitors with cheaper deals is often the way to obtain the best market prices.
Being organised, understanding the process and ensuring you, or your consultant is prepared for the contract end date, ensuring you do not roll over is key to keeping costs low. Rollover rates are often some of the most expensive rates offered by suppliers.
What can you do:
Renew direct with your current supplier (typically at higher rates)
Compare across 50+ suppliers with multiple tariff options yourself
Work with an independent utility consultant to find the most suitable, cheapest tariff
The fist two options involve your time and effort to understand, compare and decide upon the best solution. Just using your current supplier limits comparison and negotiating powers. Comparing the market yourself with the multiple suppliers and tariffs available is often time consuming and confusing, when you have other things to focus on.
By entrusting the comparison and review with Sustainable Business Services you can be sure of a transparent market comparison specific to your bespoke needs:
Traditional vs Green Sources
Optimum time / contract type and length
We will inform your current supplier
No disruption to service
With the added benefit of a fully managed renewal or transfer service ensuring your fist bill is inline with the negotiated price.