Introduction

Switching business energy suppliers can seem like a daunting task for small and medium-sized enterprises (SMEs). However, with rising energy costs and an increasingly competitive market, finding the best deal can significantly impact a company's bottom line. In this guide, we will walk you through everything you need to know about switching energy suppliers through a broker, ensuring a smooth and cost-effective transition.

"Many SMEs overpay for energy simply because they don't switch suppliers regularly. Working with a broker can save businesses up to 40% on their energy bills." – Energy Savings Trust

Why Should SMEs Consider Switching Energy Suppliers?

Cost Savings

One of the biggest reasons SMEs switch energy suppliers is to cut costs. Energy prices fluctuate, and staying on a default or out-of-contract tariff can lead to unnecessarily high bills. Many business owners don’t realise that energy suppliers often place businesses on a "deemed" or "out-of-contract" rate if they fail to renew their contract, which can be up to twice as expensive as negotiated rates.

Better Customer Service

Some suppliers offer better customer service than others. If you're experiencing poor response times or billing issues, switching to a more reliable provider can improve your overall experience. Many SMEs struggle with inaccurate billing or long wait times for issue resolution, so ensuring a supplier has a strong reputation for customer service is crucial.

Tip: Look for suppliers with dedicated business support teams that provide direct customer service.

Sustainable and Green Energy Options

Many businesses are now looking for ways to reduce their carbon footprint. By switching suppliers, SMEs can choose a green energy plan that aligns with their sustainability goals. Governments and regulatory bodies are increasingly encouraging businesses to adopt renewable energy sources, and doing so can also improve a company’s brand reputation.

Understanding the Role of an Energy Broker

An energy broker acts as a middleman between businesses and energy suppliers. They help SMEs find the best deals by analysing tariffs, negotiating rates, and managing contracts.

Benefits of Using a Broker

• Market Expertise: Brokers have access to the latest market rates and trends.

• Time-Saving: They handle negotiations, contract renewals, and paperwork.

• Customised Solutions: Brokers tailor energy plans to suit business needs.

• Access to Exclusive Deals: Some brokers have access to special rates not available directly to businesses.

• Risk Management: Brokers can help businesses hedge against price fluctuations.

Key Energy Terms SMEs Should Know

kWh (Kilowatt-hour)

A measurement of energy consumption. Understanding your kWh usage helps in choosing the right tariff.

Standing Charge

A fixed daily fee businesses pay regardless of their energy usage. Some suppliers offer no-standing-charge tariffs, which may be beneficial for low-usage businesses.

Fixed vs. Variable Tariffs

• Fixed: The rate per kWh remains constant for the duration of the contract.

• Variable: The rate fluctuates based on market conditions, which can lead to savings or unexpected price hikes.

Rollover Contract

If a business does not switch before the end of its contract, some suppliers automatically renew the contract at higher rates.

Green Energy Tariffs

Energy sourced from renewable sources like wind, solar, and hydroelectric power.

Understanding Business Energy Meters

Types of Business Energy Meters

Choosing the right energy meter for your business is crucial to managing costs effectively.

• Standard Meters: Traditional meters that require manual readings.

• Smart Meters: These automatically send readings to suppliers, ensuring accurate billing and eliminating estimated bills.

• Half-Hourly Meters: Required for large businesses consuming over 100 kWh, providing automatic readings every 30 minutes.

• Multi-Site Meters: Ideal for businesses operating across multiple locations, simplifying billing under one contract.

Tip: SMEs can benefit from installing smart meters to improve energy efficiency and reduce administrative burden.

Step-by-Step Guide to Switching Business Energy Suppliers

Step 1: Assess Your Current Energy Contract

Before switching, understand your current contract, including:

• End date and notice period

• Any exit fees

• Current tariff and unit rates

Many business owners unknowingly get locked into expensive rollover contracts due to missed renewal deadlines. Keeping track of your contract terms is essential to avoid unnecessary charges.

Step 2: Compare Energy Suppliers

Using a broker or comparison service, research different suppliers based on:

• Price per kWh and standing charges

• Contract length and flexibility

• Customer reviews and service ratings

• Renewable energy options

Tip: Check the supplier’s track record for billing accuracy and service reliability.

Step 3: Get a Tailored Quote

Energy brokers can provide customised quotes based on your business size, energy usage, and requirements. Some suppliers offer flexible contracts with benefits like fixed pricing, which helps businesses manage costs more effectively.

Step 4: Review and Sign the New Contract

Once you've selected a supplier, review the contract carefully. Ensure there are no hidden fees and that the contract terms align with your business needs.

Step 5: Notify Your Current Supplier

Your broker may handle this, but it's essential to inform your current supplier of your switch and confirm any final payments. Some suppliers require a notice period, so it’s important to check your contract details.

Step 6: Smooth Transition to Your New Supplier

Most switches happen within 21 days without any disruption to your energy supply. Your broker can help ensure a seamless process.

FAQs About Business Energy Switching

How are business energy rates determined?

Business energy rates depend on various factors, including market conditions, business size, location, and contract type.

What happens if I don’t switch suppliers?

You may be placed on an expensive rollover or out-of-contract tariff, significantly increasing your energy costs.

Can I switch suppliers if I have an outstanding balance?

Some suppliers allow switching with an outstanding balance, while others require full payment before switching.

How long does the switching process take?

Most switches are completed within 21 days, but this can vary depending on contract terms and supplier processes.

Will my energy supply be disrupted during the switch?

No, the switch happens seamlessly without any downtime in your energy supply.

Conclusion: Is Switching Right for Your Business?

Switching business energy suppliers is a strategic move for SMEs looking to reduce costs and improve efficiency. By working with a broker, businesses can streamline the process, secure better rates, and make informed energy decisions.

Next Steps: Speak to one of our experts today to explore switching options tailored to your business needs.