Switching energy retailers is one way to save money on your energy bills. You can research to compare and find the best energy deal that you need for you and your business.
When you switch energy, you enter into a contract. Some energy suppliers offer a Cooling Off Period for Business Energy. It is the period that protects your business from penalty fees, just in case you change your mind. However, most business energy suppliers do not have this option as they regulate on a fixed-term basis.
Here are all the things you need to know about energy switching.
What is the energy cooling-off period?
The energy cooling-off period is fourteen days to change your mind and cancel an energy service. This cancellation is without any consequences. This period gives you the freedom to stop your energy order within two weeks after the day of switching.
The energy cooling-off period is necessary because:
- It protects you
- It gives you a full refund
- You do not need to state your reasons
- It does not affect your statutory rights
- You can use the time to consider different options
- Ensures your access to rates and deals that will benefit you
The cooling-off period is the right time to think and weigh your energy choices. Here are some tips you might need to know when deciding:
- Choose an energy supplier with the best price
- Pick the energy supplier which gives the best value for your money
- Weigh the best customer service
- Check for the reliability of the energy provider
- Study the terms and conditions of the contract
- Compare energy deals that are on the market
Can you switch energy suppliers after the cooling-off period?
You can switch energy suppliers anytime you want. With fixed-term deals, a switch after the cooling-off period will entail exit fees.
The period you can switch your energy supplier without a penalty is within the switching window. The switching window composes 49 days before the contract expires.
Can you change your mind?
There is no wrong with changing your mind after signing up for an energy contract. You have the entitlement to decide on what you think will drive the most benefit for you.
Though changing your mind is not prohibited, it is only limited to the cooling-off period to have it free from charges. You need to research and study every energy deal on the market to see what gives you the highest benefit.
Comparison and energy switching process
Here are the following steps on how you can compare and switch energy:
Step 1: Energy prices comparison
When comparing energy prices, you will need:
- Energy billing
- Resources for energy comparison
Step 2: Switch your energy supplier.
When you switch your energy supplier, you will need the following information:
- Company name of your current supplier
- Name of your current energy tariff
- Annual energy costs
Step 3: Find tariffs and energy suppliers.
There are a lot of comparison websites that are available on the web today.
There are two basic types of a tariff, this includes:
Variable energy tariff
This tariff changes when there is a change in the supplier’s rate. Variable energy tariff is flexible and does not tie you with the energy contract.
Fixed energy tariff
A fixed energy tariff is a payment of a fixed price. In this stable tariff type, you are contract-bound.
Your guide to comparing energy deals
Choosing the right energy deal will help you save money. Here is a guide on how you can compare energy deals that are available on the market:
Your energy, your choice
When looking for the right energy deal, you should know that the choice is yours. There are identical offers from different energy suppliers. Always remember that you should choose what you think is best for you.
Think of how much you can save.
Calculate the different offers from energy suppliers. Compare the savings amount and see what will help you save money in the long run.
Compare the whole market.
Do not just compare the familiar energy suppliers. You should widen your options and start your comparison from the whole market.
Know the benefit period and discounts you can get
Since you are choosing what is the best deal for you, knowing the benefit and discounts you can get from your energy supplier will help you decide.
Do you have green options?
You will need an energy supplier that values your support for the environment such as saving on AC electricity through the usage of window tint. Look for energy deals that are sustainable and environmentally friendly.
Know the energy supply limit
Different energy deals that are available have a limit. It is good to compare the limitations of the energy deals. Other energy deals have limits on tariffs and rates. Decide based on what makes you save more.
How does business energy differ from domestic energy?
Here is a comparison of how does business energy differ from domestic energy:
Business energy’s contract term varies. The contract can last up to four years. On the other hand, the domestic energy contracts have no end date.
Business energy requires you to stay within the duration of the contract. In a domestic energy contract, you can switch supplies whenever you want.
Most business energy suppliers do not offer a cooling-off period. Domestic suppliers have a 14-day cooling-off period.
Value Added Tax (VAT)
Business customers pay 20 percent energy VAT while domestic customers pay only 5 percent energy VAT.
Can you switch business energy suppliers?
You can switch business energy suppliers even with a fixed-term contract. You can still switch business energy due to the following circumstances:
- You have not signed a contract for a new energy deal
- Your business energy contract expires
Can you get out of your business energy contract?
You can get out of your current business energy contract by termination. Termination is necessary because all energy suppliers will automatically enroll you in a new contract at a higher price.
You can get out of your business energy contract through the following steps:
Step 1: Find out your contract’s deadline.
In the United Kingdom, business energy contracts usually range from twelve months to three years. Yet, not all energy contracts are the same. It is necessary to know your deadline to find the best time when you can get out of your business energy contract.
Step 2: End the contract
If your current energy is ending, your energy provider will inform you thirty days before the end. If you want to end the contract, serve a notice of termination as a standard process to terminate your current contract. You can process the termination of your business energy contract through electronic mail and letter.
Short-Term vs. Long-Term Energy Contracts
Short-term energy contract
Short-term energy contracts last for one year and below. The term could be six months, three months, or monthly basis. The advantages of a short-term energy contract include:
- More opportunities to find energy suppliers who offer lower rates
- Flexible energy contract
Long-term energy contract
Long-term energy contracts last for one to five years. The term could be twelve months, twenty-four months, or thirty-six-month basis. The advantages of a long-term energy contract include:
- Higher long-term savings
- A more stable rate of energy supply
- Saves you time in comparing energy rates