Small business electricity enquiry

Ch1ckenlady

Apologies if this query has been answered before but I have a query.

We are a very small business and our electricity (3 year fixed deal) contract, presently with a main provider, is due for renewal next year. We can start renegotiating with them in November 2013.

We've always kept tabs on readings and updated the provider on a 3 monthly basis so all bills are accurate.

We are 100% electricity unfortunately. There is no gas supply to the premises.

We're being approached by several utility 'brokers', keen to sign us up to new deals. Clearly, we're being cautious!

Questions:

1) are we best to make our own enquiries at the appropriate time to potential new providers (these companies which are approaching us say they don't charge us but how do they make their money?)
2) would another fixed deal be best
3) I have been told that Smartmeters will soon be compulsory for businesses and was offered a 'deal' which had a free Smartmeter - what are peoples opinions on this?

Thank you for your time. All advice would be welcomed.

Wywth

Ch1ckenlady wrote: »

Apologies if this query has been answered before but I have a query.

We are a very small business and our electricity (3 year fixed deal) contract, presently with a main provider, is due for renewal next year. We can start renegotiating with them in November 2013.

We've always kept tabs on readings and updated the provider on a 3 monthly basis so all bills are accurate.

We are 100% electricity unfortunately. There is no gas supply to the premises.

We're being approached by several utility 'brokers', keen to sign us up to new deals. Clearly, we're being cautious!

Questions:

1) are we best to make our own enquiries at the appropriate time to potential new providers (these companies which are approaching us say they don't charge us but how do they make their money?)
2) would another fixed deal be best
3) I have been told that Smartmeters will soon be compulsory for businesses and was offered a 'deal' which had a free Smartmeter - what are peoples opinions on this?

Thank you for your time. All advice would be welcomed.

http://www.moneysavingexpert.com/banking/small-business#cheapest

I think the issue with smart meters at present is there is no agreement on how they should work, so if you change supplier later, you may need a new smart meter.

I suggest you wait until an agreed smart meter design is established.

dogshome

Compulsory Smart Meter installation will happen at some time in the future, but as Wywth says, heaven knows when

You seem to be switched on so far as Small Business utility contracts go, but visit Ofgems web site and enter microbusinesses into the search panel - Ofgem have at last have brought some rules as to how business utility suppliers must behave.

So far as Fixed Price contracts are concerned, search the Domestic comparision sites to get an idea of forward prices. It's unlikely you find any offers that go as far as 2017, but at least it gives you a target price to aim for

Neil_Jones

Electricity tariffs for business works in an entirely different way to the domestic market. They tend to be fixed term contracts for one thing, typically three or five years and require some ridiculously long notification of termination.

The Make It Cheaper link on the above linked page is good; as where I work we have used them for electricity and business insurance.

Most of them make money from the supplier as a commission if you like for switching people.

bob_bank_spanker

Neil_Jones wrote: »

Electricity tariffs for business works in an entirely different way to the domestic market. They tend to be fixed term contracts for one thing, typically three or five years and require some ridiculously long notification of termination.

The Make It Cheaper link on the above linked page is good; as where I work we have used them for electricity and business insurance.

Most of them make money from the supplier as a commission if you like for switching people.

Three or Five years? Commission?

Contact the suppliers directly, you'll almost certainly get better rates. Business energy brokers are no better than prostitutes (BES ad nauseum), if one is prepared to negotiate face to face you will get a bespoke contract on your terms.

spiro

For busineses what has been mandated is an AMR meter (automated meter reading) these are a halfway point between dumb and smart.

Utilityman

I must confess to being a little hurt at our industry being referred to in such derogatory terms. My employer has been in business for the best part of 2 decades with an enviable reputation in the area.

There are thousands of customers who appreciate the time saved in finding the next deal, not to mention ensuring they don't miss deadlines and forensic examination of previous bills to spot the very many mistakes that have resulted in over payment, often by several thousands of pounds which we've been able to help recoup.

Of course there is a charge involved, built into the energy bill or a fee. This can avoided by contacting the several suppliers, learning the various phrases that the industry indulges in, rates, and tariffs, decide, apply, sometimes rejected start again and repeat every time the contract ends. I would argue that you are better off concentrating on your business, delegate such matters to a reputable broker who will ask questions you might not consider.:o

MillicentBystander

I'm sure many micro/small businesses actually use less fuel than some households so how come the minimum contract terms imposed are so ridiculous and anti-competition?

bob_bank_spanker

Utilityman wrote: »

I must confess to being a little hurt at our industry being referred to in such derogatory terms. My employer has been in business for the best part of 2 decades with an enviable reputation in the area.

There are thousands of customers who appreciate the time saved in finding the next deal, not to mention ensuring they don't miss deadlines and forensic examination of previous bills to spot the very many mistakes that have resulted in over payment, often by several thousands of pounds which we've been able to help recoup.

Of course there is a charge involved, built into the energy bill or a fee. This can avoided by contacting the several suppliers, learning the various phrases that the industry indulges in, rates, and tariffs, decide, apply, sometimes rejected start again and repeat every time the contract ends. I would argue that you are better off concentrating on your business, delegate such matters to a reputable broker who will ask questions you might not consider.:o

I appreciate your argument, however this is a money saving forum. For many businesses energy is their most significant overhead, so it is worth their time keeping costs to a minimum and going direct.

For anyone with a modicum of intelligence, it's really not that difficult. Many of the largest corporations in the UK tender directly to companies for their energy supply, with all the various meter types, flexible rate requirements and assorted complications you would expect. They don't need a broker, so why would joe bloggs running a chippy?