What To Do When Business Energy Price Rises?
The Big Six companies have recently increased their energy prices and SSE is the last to raise its charges. This is no good news to many of its patrons especially since they dominate the home and business energy market in the United Kingdom. Meanwhile, out of all the six energy companies, Npower was criticized as the “hammer blow” for homes.
As for the largest among the Big Six, British Gas has decided to freeze its prices until August. After which, it is expected to increase its rate as well. Now, with these devastating news at hand, how can customers deal with the business energy price increase?
Getting The Best Deal
Before the business energy price rises, the best thing to do perhaps is to get the best deals. Although the difference between the best deals and standard tariffs have become closer, it is still best to take advantage of it now than never. Last year, the cheapest deal is almost £226, but now, it’s just £137 less than the standard tariff’s cost.
Instead of shopping around for a new contract, knowing more about the current energy plan and the amount of energy consumed is more important. The customer can do this by basing on their previous bills or asking the necessary details directly to the supplier.
Basically, only variable tariffs allow switching without any exit fees while fixed price deals charge once the customer leaves before the contract ends.
Negotiate With The Current Supplier
Before switching to a new supplier, it is best to communicate with the current supplier. Negotiate for a better deal by calling and asking for a counter offer. If in case the current supplier declines, you may check on the new potential supplier if the switching outweighs the expenses.
Best Fixed Deals
Obviously, fixed price tariffs are the best deals since the same rate will be paid despite the market’s movement. However, even this tariff is on the verge on increasing.
For example, the average fixed rate last year on the month of April is £745, however, it has risen up to £784 in September. Then, this year, it is already £900.50.
To find out the best deals available in a specific area, using a switching tool or energy comparison website is helpful.
To avoid penalties or paying for an exit fee, the customer must comply with the energy company’s terms and conditions. Meanwhile, Ofgem requires all of the suppliers to notify their consumers about the end of their contract within 42-49 days before its due. Once the customer received the letter, they can switch without any fee.
Choosing Best Variable Prices Over Best Fixed Rates
While traditionally, fixed rates are cheaper, the recent difference between it and the variable rates has narrowed. With this in mind, the customer may opt for a variable rate and hope that the market would drop more than the price of the fixed rate. However, since price increase is in the market trend, it may not be the best time yet.
For variable tariff members, the energy supplier may notify each customer for at least a month before the price increases. This means that the customer has enough time to switch to a new cheaper contract especially since no exit fee is required.
Smaller alternatives such as Flow, Avro Energy, Octopus Energy, Bulb, Toto Energy, and Economy Energy can be considered. Unknown to many, these alternatives offer rates that are at par with the Big Six or better, lower than their rates. Moreover, the switching is quick and easy therefore if the customer is certain about the switch, the smaller alternative can guarantee a hassle-free change.