SME Business Energy

Where business is concerned, book management plays an important role. This role becomes an even more crucial element in the overall running of your business when you are a non-profit organisation. As a small business owner it is imperative that you keep a close watch on your expenditure – which of course includes your energy bill.

In order to reduce your costs and ensure that you are not paying far too much for your gas and electricity, you must secure an energy deal that is suited to your needs. You must only pay for what you use. You might be surprised to discover how easy it is to settle for a contract that leaves you out of pocket. SwiftSwitch are of course here to alleviate this burden and take care of the delicate negotiation process but we also understand that it’s nice to have a little read in your own time.

Below is some very useful information about business energy contracts.

THE CONTRACTS

A business energy contract is a documented agreement between you and your energy supplier. Contracts can be agreed upon verbally or in the form of a signed paper contract.

Fixed-term Contracts

Fixed term business energy contracts offer small businesses fixed rates per unit of gas and electricity used. This will be on top of the mandatory ‘daily standing’. With a fixed-term deal both of these prices will remain the same throughout the entire duration of your contract.

Pros

This is a popular choice for small businesses because as long as your usage remains the same your bills will too. It enables you to forecast accurately for the duration of your contract.

Another advantage is that you will not have to fork out for any out of contract rates – these are expensive rates that suppliers charge before you enter into a contract. Having a fixed price will protect you from fluctuations in the market.

Cons

Unless you arrange a new contract within the six months preceding the end of your existing contract, you will face being transferred straight over to a more expensive out of contract rates, or a fixed term rollover contract. Both of these contracts can be up to 2-3 times more expensive than fixed term rate contracts.

SwiftSwitch will of course endeavour to keep your costs reasonable, and could help you to reduce them too by switching you on to a better deal – but you must be wary of the 6 month rule!

To ensure you always avoid this expensive eventuality, as part of our service SwiftSwitch will call you before your contracts come up for renewal and help you to search the market for more affordable deals. This will free up your time and allow you to focus on more important aspects of your business.

Are you microbusiness?

According to the European Union you are a small business if you have 50 employees or less.

To be categorised as a microbusiness you have to meet one of these criteria:

  • Use less than 293,000 kWh of gas or 100,000 kWh of electricity per year
  • Have 10 employees or less
  • Your annual turnover must not exceed 2 million euros

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We would love to hear from you. If you want to save money, time and hassle on your utilities, get in touch and have a chat with one of our energy experts.

You can call us on 020 7701 5189 or email us at hello@swiftswitch.co.uk