How Are Business Gas and Electricity Contracts Supposed To Change?
If you are in the business of supplying gas, it makes sense for you to know about the different business gas suppliers available. Domestic gas prices can vary substantially from time to time and finding a reliable supplier that meets all your needs can be difficult. Finding the right gas supplier for your business is an important decision, so take your time to do your homework before you commit.
Domestic gas prices
are set by the gas network which all UK local businesses use. These are called “binding”. Quick, and easy No commitment or long-term commitment is required. Get quotes instantly for your entire business electricity usage. In most instances your local business gas supplier comes under a “bunding” contract and leaving your current contract before it comes into effect can actually cost you a large leaving fee. If you think about it, why would anybody want to leave their current supplier, but even more importantly, why would they want to go to a supplier who could actively try and decrease their contract length?
Electricity tariffs can also vary considerably from time to time
and if you think about it, there are several potential reasons why you may wish to switch to a new supplier. Switching to the new business gas suppliers can save money. You may even find it allows you to earn more. By comparing gas and electricity prices you can see which company has the better deal for your business. The biggest reason to change suppliers is to save money; however, you should be careful not to sacrifice your current gas or electricity contracts in the process.
Many small to medium-sized businesses (SME)
use domestic gas and electricity. These businesses typically generate very little electricity or gas, or neither of them. But in addition to being small to medium-sized, many SMEs have high overheads. And the high overheads mean that the businesses must take on large deposits of fixed assets, such as equipment and supplies. To keep operating at a loss, the owners of these SMEs will typically have to sell off some of their assets – either to raise capital or to repay debts.
This means that business energy tariffs
are particularly affected by the economic climate. That’s not a surprise. When the economy is struggling with high unemployment, high inflation, and low demand, it naturally drives up the cost of domestic gas and electricity. But it is important to remember that the cost of living will remain relatively constant, provided that economic conditions do not change. So if you were looking to switch gas and electricity suppliers during a period of rising fuel bills, you will probably be better advised to wait until the economy recovers.
Now, while prices are likely to rise again in the coming year
it is unlikely that they will remain at current levels for an extended period. And while it may be hard to weather the storm around the energy market, the fact that many businesses have already switched gas and electricity contracts is also good news. More competition means that there are more flexible contracts available to SMEs, making it easier for them to get the best deals. As competition increases, more businesses will be able to benefit from dual fuel energy suppliers.