Landlord - Electricity bills. Do nothing or move onto Fixed rate?

jord3008

Hello,

I would be grateful if anyone could assist with my dilemma.

I am a private landlord and I pay the electricity bills for the communal areas of my properties. 

My tariff details at present are as follows:   Standing Charge - 14.00p   Normal Charge - 21.060p per kwh (Total annual cost £413.12).

As it has been mentioned on the television, Martin's advice is to do nothing with regards to the renewal of electricity bills. However, I do not know if I am correct in saying but it may not apply in my case?

My electricity provider, E.on, has offered several options based on the annual usage of 1719 kwh:

Option 1) Fixed Business Electricity Plan - 1 Year Baserate (Standing Charge - 48.00p   Normal Units - 57.75p per kwh) Estimated annual cost £1167.92

Option 2) Variable Electricity Plan - Baserate (Standing Charge - 78.00p   Normal Units - 57.75p per kwh) Estimated annual cost £1277.42 - E.on have stated that if they do not hear from me then I will automatically be placed on this tariff.

Option 3) I called E.on by telephone and the best tariffs they could offer me on 07-12-2021 are as follows: 

Standing Charge - 56.00p   Normal Units - 22.6p per kwh (1 year) - Estimated cost of £593.89 per year

Standing Charge - 56.00p   Normal Units - 20.6p per kwh (2 year) - Estimated cost of £558.51 per year

Although it has been mentioned to do nothing with regards to electricity renewals, would I be wrong in this case to accept Option 3 as it appears to have the lowest annual estimated cost? Despite it being around £145.00 more expensive than my current tariff? 

I would appreciate any clarification and help on this matter. Thank You.

QrizB

"Martin's advice is to do nothing with regards to the renewal of electricity bills" is specific to domestic accounts where the current Ofgem capped rates are substantially less than the cost of supplying electricity.

The Ofgem cap however does not apply to business accounts. Your supply is a business account. Business account holders are expected to be astute enough to be able to pick an appropriate tariff from those offered on the market.

Personally, based on the info you have supplied, I would be inclined towards Option 3 too.

Robin9

I reckon your option 3 is good - I'm a much heavier user and just taken a 3 year £1.59 s.c 23.68 kWh (with Total Gas and Power)

Robin9

If you thought the domestic market was crazy !

Was quoted terms last week with an acceptance of Tuesday.  Supplier has now withdrawn. Not quite sure what happens now

jord3008

Thank you both for your help.