You would think deciding on power for your company would be as simple as flicking a switch. Right, power? Turns on the lights, maintains the warmth of the coffee, and keeps the servers alive. But compare providers and—bam—you’re neck-deep in business electricity tariffs, time bands, and lingo that sounds like it came from a forgotten corner of a science textbook.
Most small companies, to be honest, receive a raw deal. Either they are habitually stuck renewing the same old contract or too busy looking for savings. Not too far off. You are not alone; so, relax. But you are losing money on it.
Like basic vanilla, fixed-rate plans are Safe, dependable, seldom exciting. You know what you are paying, but you will be stuck watching from the sidelines while others save if market prices decline. Conversely, variable rates are more like roller coasters—some exciting drops but lots of unanticipated stomach-turns. If your use moves to the rhythm of seasonal trends, think about something with some freedom. Simply said, unless you have a cushion, never gamble the farm on erratic pricing.
There is then the sneaky things. One of quiet killers are standing charges. Some providers brag about low prices, then subtly charge you everyday just for holding the contract. Multiply it by 365 and you suddenly have teeth for that “bargain”.
green rates? admirable concept. Still dig though. Some suppliers charge for renewable energy and plaster on a leafy emblem. Others, meantime, really support it with real investment in greener energy sources. Ask where the energy comes from if you find that kind of stuff important as many others do. Not exactly where they claim it does.
And with regard to the exit fees? You change providers, and shortly afterward you find a farewell invoice with a passive-aggressive goodbye. Some ideas are more clinging than those of a first date inquiring about marriage. Even if the fine print is little and bothersome, read it.
Stay sharp in your wits during the comparison dance. There are several sites with exaggerated ad boards. Others toss random numbers like candy without explaining their computation. Look for instruments for usage history. Actual approximations. And most certainly, unvarnished reviews. Someone alleging their meter was possessed and billing them for four lives of electricity speaks to nothing except “red flag”.
Oh also related to contract length. It’s a toss-off. Lock in too long and you may be stuck should prices collapse. Go short; you blink and will find yourself back at the comparison table. Choose depending on the level of stability in your company. High expansion? Never lock in. level and consistent? Go for the long run, perhaps.
Comparing business electricity offers is ultimately rather similar to boot shopping. Up until you wear them for a month and discover half give you blisters, they all seem similar. Be finicky. Inquiry is important. And don’t hesitate to switch if your finances—or your feet—begin to hurt.