Business electricity rates - too good to be true?

ChasingtheWelshdream

Hi, apologies if this should be in the small business section, I wasn't too sure.

I am currently on deemed rates for my first new business premises. I have been looking into contracts and my current provider's rates would be more than the deemed rates. I am a low user  >1000kw per year so the standing charge would be high.

I have since been offered a contract by a broker which is half the price, but it seems so much lower than others I am unsure if it is too good to be true.

I have been offered 58p standing charge (58p exactly) and 24.98p/kw. This is on a par with my domestic rates so I am sceptical and trying to pour over the contract. 

My concern is that the broker is basing the contract on usage data from the previous occupants. This is twice my usage and despite me providing accurate readings over the last 2 months, the broker doesn't seem to have recorded this anywhere on the contract.I  worry this could come back to bite me.

 They also tell me there are no penalties if I end my tenancy and have a generic address on the contract, rather than my actual address. Eg "Town Industrial Estate" rather than "No. 3, Town Industrial Estate".

Does anyone have experience? Should this ring alarm bells?

Robin9

Sounds OK  - I'm paying a little over 25p /kWh  but a s/c of £1.61    (granted that I am a much bigger user and my present contract goes back to last Autumn)   Ring around the suppliers yourself and see what you are offered.

Get that no penalties put in writing -  and ensure that your proper address is used.

ChasingtheWelshdream

Thanks, that's a little reassuring. It is the standing charge that is killing me at the moment - £1.02 per day when I am only at the unit 2 days a week. I have been told by others that I can have a higher standing charge/low unit rate but there is no advantage for me over deemed rates. As I am only at the unit 2 days per week, the standing charge is my priority to lower if I can. 

Nobody comes close to that 58p the broker quoted.  My concern is the broker may have used incorrect data to what I have actually supplied, so the price is more favourable based on the previous tenant. They said on the phone that is what they need to do, but I am concerned what the energy company would do when they notice I am a lower user.

ChasingtheWelshdream

Quick update: It looks like I have been unfairly cynical. I have found the same rates the broker quoted using my own usage figures.. Albeit I don't want a 2 year contract so that needs looking at. I am not confident in the paperwork I have been given, but I think I have jumped the gun with thinking there was a catch.

Which leads me onto whether we are on the best domestic tariff as I always assumed commercial electricity would be much more expensive. 

Robin9

What domestic tariff are you on ?   The SVT or a fix from within the last couple of years ?

ChasingtheWelshdream

Octopus Flexible

61.19p standing charge 
24.51p/kw

We recently had a smart meter fitted and I keep meaning to look at options. Now seems a good time!

Ectophile

Don't trust anything a salesperson tells you.  Ask for a written copy of the contract, and read every single word of it.  Look for sneaky clauses that lock you in to that broker for a long time.

Having read the contract, ignore anything the salesperson promises unless it matches what's in the written contract.

chickenwings89

Yes, those are definitely things worth questioning.

The rates seem pretty good, but the vague contract details—like incorrect usage estimates and a generic address—seem a bit off. Especially if your usage doesn’t match what the supplier expects.

If the contract isn’t tailored to your business’s energy needs or your address isn’t clearly listed, you could run into billing disputes or issues if you move premises. It’s wise to double-check everything and get written confirmation on early exit terms.

Spoonie_Turtle

Necrothread alert (although it's *only* a year old, some are much older)!

ChasingtheWelshdream

Although, I am still here and am actually in the process of signing up for a new contract right now actually. :-D

As an aside, I actually did better than the tariff I quoted in my OP. I ended up with a year of zero standing charge 24p(ish) p/kwh. Alas, I only fixed for 12 months and am now looking at an increase for my next contract. Meh.