Is it Financially Worth it to Switch Energy Supplier for Your Business?

With anticipated price hikes ahead of us, the only way you can save yourself from big bills is to do your homework when it comes to energy suppliers. The impending increase is due to the concerns over French nuclear power sources and gas restrictions in Russia. Consequently, many people may consider changing their providers for the special offers or bonus figures that companies pull out of their hats. However, the decision of changing your energy supplier or the type of energy you use should be well studied in order to be aware of all the factors that go into play. 

If you are worried about losing your supply in the process, you shouldn’t. But when it comes to whether it’s financially worth it or not, then time and effort should be put into researching the best energy supplier that can save you money and the hassle of common problems. 

Here is how you can decide if switching energy suppliers is worth it.


Determining your needs

First and foremost, before deciding on whether it’s better to change suppliers or not, determine whether you are satisfied with your electricity and gas services, or if you would prefer a dual fuel contract that can cover you both services by the same company. Once you determine your needs, there are some questions that you need to answer before you start comparing different energy providers. First comes the location you are based in, followed by your meter numbers. Both answers will limit your search. If you don’t know your meter number, you can find this type of information on your bill receipt.


How to switch suppliers?

After you have calculated how much you usually pay, and how much you could save up through different suppliers, you can then make the decision. In order to switch suppliers, you will need a copy of your most recent bill or your current contract. If you are not sure how to find the perfect provider, seasoned account managers at Energy Seek recommend using online comparison tools for businesses to decide on the best supplier for their needs. Comparison tools are a great way to save you the time and the hassle of choosing the most suitable option for your business or domestic needs. You will only need to provide basic details of your current contract, location, and contact details. That said, online tools can provide you with several energy quotes. You can then select the most suitable deal that will help you save the most.


When is the best time to switch providers?

There are a few situations that can compel business owners to think that they need to change their energy supplier; yet, choosing the right time to make your move might be tricky depending on your situation.


If you’ve had the same supplier for a while 

Energy suppliers usually offer “new customers” deals that you can make use of. However, these deals usually expire after a certain period of time, usually from 12 to 18 months. If changing into a standard tariff is far more expensive than what you have to pay as a new customer, then it’s time to consider another supplier’s offer.


Before your contract ends

Regardless of the type of deal you have, whether it’s a new customer’s deal or a long term contract, it’s bound to come to an end. Take into consideration that changing suppliers can take up to 28 days. You should change suppliers a few weeks before your contract terminates. That said, your energy provider should give you a notice with a period that could reach up to 49 days before the end of your agreement, and this is to leave room for customers to decide whether they want to renew the contract. 


If you are not on a fixed-term tariff 

Changing your current plan to a fixed-term tariff, especially before the winter, could save you a lot of money. In cold weather, people tend to spend more on electricity bills compared to the summer.


When rumors arise about a price increase 

Usually, before any price increase, rumors will surface beforehand. Even if one provider has raised their prices, other suppliers will most often follow in their footsteps. This is when you should start comparing quotes to find the best deal that suits your needs. 

Determining your preferences and needs will help you limit your search when you are considering a new supplier. You will need to determine the type of energy supply you need, as well as price, flexibility, or other services that you care about. The move of switching suppliers, if calculated and well-considered, will save you from spending more money than you should.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.