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Since June 2017, it has been forbidden for suppliers to lock businesses into ‘automatic rollover’ contracts for their business electricity or dual fuel supply. This means you have or will soon have the flexibility to compare commercial utility rates and switch to a new tariff at the end of your contract without issues – even if you’re switching provider.

Are You on Good Commercial Utility Rates?

There is a huge difference between the best and worst business energy tariffs available to the same premises.

You might be:

  • Paying extra for perks or services you don’t actually use
  • Still on a tariff which is no longer competitive
  • Paying for separate electricity and gas tariffs when a cheaper dual fuel alternative exists
  • On a ‘deemed contract’ after taking new premises or because your last contract has elapsed.

Deemed Contracts & Commercial Utilities

Deemed contracts are the industry term for situations where there’s no formal, mutual agreement but the supplier is providing power. They’re most common when you move into new premises and start using power but allowing a contract to run out without getting a new one can also see you on a deemed contract.

A study by Ofgem suggests that the price of your utilities can be up to 80% higher on a deemed contract than on a formal agreement.

There is one silver lining, however – on a deemed contract, you have the right to switch to another supplier for any reason and at any time, regardless of the usual restrictions. You may not be forced to serve a notice period or charged with a termination fee for doing so.

Commercial Utility Rates Comparison

Even if you’re not on a deemed contract, research has shown that most businesses can save up to 40% on their commercial energy bill by comparing rates before selecting a new tariff. For major commercial organisations, this is an absolute must!

To put that number in perspective, a study by the Carbon Trust suggests that reducing your energy bill by 20% results in the same profit as increasing sales by 5%.

You can start by filling out a form like this one. You’ll be presented with a range of quotes for commercial utility tariffs offered to businesses like yours. That immediately gives you a clearer picture of how your current tariff measures up to the industry.

By reviewing the details – price, perks, and any other services – of the tariffs on offer you can find the one that fits you best. Make sure to take your time over this. Remember what 20% savings can represent! It’s worth spending a little longer to improve your company’s bottom line to that level.

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