Every business needs to be concerned about how much they are paying in utilities. Despite various business expenses and tax credits that can be claimed towards energy bills, simply making a few wrong decisions can see your bills sky-rocket. There around 70 energy providers in the UK and this has its plus points (a larger market in which to browse) and its negative points (70 different types of sales speak to delve through while trying to find the best deal.)
One of the first decisions to make is whether you want to be on a fixed or variable tariff. Under the fixed scheme your bills will have a maximum price that they cannot exceed but the price per unit is likely to be higher than on a variable tariff; so if you use less than the maximum price it is possible you will be paying too much. Variable tariffs have no fixed cap but they are prone to fluctuate in price and this makes budgeting a bit of a guessing game. If you are running an office with lots of computers that are on all day then a fixed tariff is probably the best choice but if you are out of the office for most of the day then consider a variable tariff.
Another tariff consideration to make is “duel fuel”. Many suppliers will offer discounts to businesses that buy both their gas and electricity from them.
If you are considering changing supplier then you should research as many tariffs and packages as you can. Only when you know exactly which tariff you want should you contact a supplier. Consumer awareness charity Which? carried out a survey recently which showed that a number of people in the UK were not being offered the best value packages when they called to switch supplier. Michael Wood, managing director of The Economy Radiator Company, agreed with these sentiments saying “Many of my customers have also echoed the findings of Which?” adding “The best way to check energy tariffs is to use the online comparison sites.”
The type of fuel you use for heating can make a huge difference too. Gas is generally cheaper for heating but if you are heating electronically it can cost an awful lot to replace your current system with gas central heating. If you are currently heating your premises electronically you can save money by purchasing more effective radiators; electric heaters with good thermostats don’t need to be on as long and therefore use less electricity. The installation of solar panels can also save money on electricity bills and there government incentives for installing them.
In these times of austerity getting the best value from your energy suppliers is vital and any extra money saved will surely contribute towards your businesses productivity.