THE BUSINESS ENERGY EXPERTS

Q: How can you help reduce my business energy costs?

A: By utilising our extensive network of suppliers and our powerful comparison tools, we ensure you get the best rates and terms available; often significantly reducing your utility costs. We provide services to leisure & hospitality, offices, retail, industrial and healthcare industries, across both the public and private sectors and tailor our solutions to meet the bespoke needs of each specific industry.

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Q: How does the business energy comparison / switching process work?

A: We provide dedicated customer support utilising our team of industry experts to help you manage your switch and answer any questions you may have, providing a smooth and effective experience. We firstly begin by reviewing your business energy consumption (you will need a copy of your latest utility bill for this). Once we know how much energy you use, when, and how, we will then put your supply out to tender with our energy supplier network. We work with the standard 'big players' of the UK energy market and can also tender your supply to ‘niche’ energy suppliers that you may not be aware of. We then benchmark and compile the most relevant options in an easy-to-understand overview report. Our expert advisors will then discuss your options and  help you to choose the best supplier for your business based on the current market conditions and your current / future energy requirements.

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​Q: What affects business energy prices?

A: There are a number of factors that cause energy prices to rise and fall:

• Demand: Energy prices dropped to record lows during the first lockdown of 2020 as industrial energy demand plummeted. As things have got back to normal and demand for energy increases, prices continue to rise; pursuant to standard supply and demand economics.

• Global events: If there's conflict, uncertainty or a natural disaster in an oil / gas producing region this will limit production and accessibility which in turn causes energy prices to rise.

• Strength of UK Currency (£): As the UK imports a lot of energy from Europe, the strength of the Euro against Pound Sterling contributes to ongoing energy price fluctations. When the UK economy is strong and the Pound Sterling is strong against the Euro then prices will generally fall; conversely when the Pound Sterling is weak against the Euro, prices continue to rise. The fallout from Brexit has exacerbated the problem alongside continuing political and economic uncertainty in the UK.

• Weather / Climate: Cold weather causes a spike in demand for heating which causes prices to rise and vice versa. Energy suppliers buy wholesale energy in advance which takes into account weather forecasts and are price linked accordingly.

• Environmental Levy / Taxes: Import / transportation costs, Green Taxes such as the Climate Change Levy (CCL) and VAT (see below) also contribute to wholesale energy price fluctuations.

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Q: What type of business energy tariffs are available?

A: There are generally 4 x main types of tariffs available:

• Fixed term: usually last between 1-4 years, during which time the unit cost and standing charge (see below) remains the same

• Blend & Extend: allow you to extend the length of your existing contract with the same supplier, who will then reward your loyalty with lower rates

• Flex Approach: allows you to take advantage of favourable wholesale rates by purchasing your energy for months or even years ahead, usually when costs are low

• Pass Through: splits your bill in two between the wholesale energy costs (fixed) and other elements that make up the unit rates (variable); most suited to businesses that don't require price certainty​.

 

Q: How is my business energy bill calculated?

A: There are 2 x elements that make up your bill:

• Unit Rate: this is how your bills are calculated, expressed in Kilowatt Hours (kWh). The cost will vary depending on your specific circumstances including your business type (opening hours will have an affect on energy consumption), business size (larger businesses typically have larger room for negotiation aka 'buying power'), business location (some regions like Scotland are more expensive to supply than others), your current supplier and the type / length of contract you have (see above), 

• Standing Charge: a fixed daily amount that's paid regardless of your energy usage. This is set by your business energy supplier to cover the cost of physically supplying energy to your premises. The amount you pay will differ depending on the type of business energy contract you are on.

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Q: Are there any additional charges?

A: There are some additional charges to take into consideration when choosing your supplier, including meter costs and transmission charges. VAT is usually charged at 20% however businesses that use less than 33 kilowatt hours per day can pay a reduced rate of 5%. The Climate Change Levy is an environmental tax; businesses that pay the standard rate of VAT (20%) will usually pay the CCL, however if you pay the reduced VAT rate (5%) you will usually not have to pay this charge. Our experienced consultants can talk you through all the relevant charges to make sure you fully understand your options.

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Q: How quickly can you switch me to a new business energy provider?

A: The switch to a new energy provider is typically quick and seamless, with most changes being implemented within a few billing cycles, depending on your current contract and the services selected. Once you have chosen your tariff and signed a Letter of Authority (see below), you can forget about it until the day of the switch. We'll contact your new supplier and they'll take it from there including telling your old supplier that you are leaving. You will then receive a switchover date and contract from your new supplier who will ensure that there is no interruption of supply during the switchover process.

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Q: What is a Letter of Authority (LoA)?

A:This is a legal document which follows a standard format and states that while a third party can gather information, negotiate and submit a Notice of Termination on your behalf, they do not have the right to agree to a contract without your consent. When you use Utilities Care to switch, signing a LoA confirms that you have given us permission to handle the switch between your old and new suppliers, meaning that you stay in full control of the switch until you are completely ready to proceed.

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Q: Can I switch energy suppliers at any time?

A: This will generally depend on your existing contract, unless you are relocating to a new business premises. When your existing contract ends, you'll automatically be placed in your supplier's more expensive 'out of contract' rates or placed on a 30 day 'rolling contract' until you agree a new deal or switch suppliers. Our energy broker experts will be able to advise you of your best options; its always best to get in touch ASAP so we can review your current supplier and advise when you can switch.

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Q: What are the next steps?

A: If you would like a free business energy assessment, please call our broker team on 0800 820 2947 or leave your contact details below and we will get back to you within 24 hours. Our working hours are 9am-5:30pm, Mon - Thurs and 9-4pm on Fridays; however if you have an enquiry out of these hours please leave us a message and the team will prioritise your enquiry upon their return.