Business energy deals for 2022

kickoffinbiz

Hi,

We’re a micro business and are currently with total energies for gas, paying 3.31p/unit with no standing charge.  Our fixed deal comes to an end in January.  Our only options with the current supplier (and they all seem similar) is to go on the SVR which is currently a frightening 12p/unit plus a £2.00/day SC or fix a new deal for 3 years at 7.3p/unit no SC or 5.7p with £2.00/day SC.  Both deals would mean we will more than double our usual spend per year on gas. 

What are others doing in the same predicament? Are you sticking with SVR in the hope the rate will substantially drop during 2022 or fixing in a high rate deal for say 3 years knowing it’s going to cost almost double but not as crazy as SVR?

Martin Lewis’s advice of “do nothing” can only apply to domestic energy where there are price caps of 4p/unit for gas and 21p/unit electricity to safeguard.  Energy for commercial properties, even micro businesses like ours does not have the benefit of a price cap 

Thoughts or advise would be greatly appreciated 

thanks 
Helen 

QrizB

The wholesale cost price for gas is currently around 7p/kWh so I'm not surprised to find that business tariffs have risen. You do have two more months before your current fix excpires so you might want to wait and see what you're offered in January, rather than switching now!

From the tariffs you've offered, and assuming you're planning to stay in your premises for 3+ years, I'd personally look at one of the fixes. Which is best will depend on how much gas you're using, averaged over the year:

• Less than 125kWh/day, the 7.3p no SC tariff is cheaper
• More than 125kWh/day, the 5.7p with £2 SC tariff is cheaper

125kWh/day is 45600kWh/yr, almost as much as four average homes.

kickoffinbiz

Thank you, comments appreciated.
Same predicament for electric! Current deal runs out in July 2022.  Fix deal ahead now or wait?

I think it’s incredibly unfair there is no price cap for business.  Where could prices end? 

QrizB

kickoffinbiz said:

Thank you, comments appreciated.
Same predicament for electric! Current deal runs out in July 2022.  Fix deal ahead now or wait?

Unless you're being offered a really good deal, I would wait; July 2022 is a long way off yet.