Choosing the right energy plan for your business is a little more complicated than going for the lowest prices. The wrong decision can also lead to price changes and even more expensive rates down the line, which is why it’s essential that you get it right the first time. Most if not all businesses rely on energy to keep going. However, business electricity prices continue to go higher and higher, making it even easier to accidentally choose a supplier and plan that isn’t the best fit for you.
While this is all about choosing the perfect plan, we also have something for those who are having difficulty finding the ideal supplier. Going to www.utilitybidder.co.uk will help you to compare business energy prices and narrow the choice of supplier. That said, what is in most energy plans, and how will you be able to tell which one is right for you?
Understanding the supply rates
While the choice of electricity supplier provides its own set of challenges, there are still hurdles in the form of the supply rates. Understanding how these rates work is the key to making an informed decision and choosing the best plan for you and your business.
- Variable rates. These are rates that depend on the current market value of natural gas and electricity. That means that customers will be able to take advantage of lower prices when the market dips. However, it also means that you will be subject to market highs.
- Fixed rates. Unlike the variable rates, the fixed rate does not change depending on whether the market dips or rises. This type of stability comes at a price, as fixed rates are generally a little bit pricier than variable rates. However, if the market is prone to higher prices, you’ll be able to save a lot of money in the long run.
- Time of use rates. Certain suppliers also offer this special plan which fluctuates depending on the time of day as well as the days of the week. There are even times when the electricity is free.
- Indexed rates. These rates are like the variable rates. However, instead of following the market it instead follows a specific mathematical formula connected to an index. Understanding this index is essential if you intend to use this plan.
Before committing to any of these plans, make sure that you do enough research and ask your chosen supplier as many questions as you can.
Choosing the overall length of term
Finally, you will need to choose the term of your chosen rates. For business owners, it would typically be a better idea to choose a multi-year plan or a twelve-month plan to guarantee price protection for the length indicated. There are also month-to-month as well as prepaid plans, though their availability will vary depending on the supplier. Understanding both the rates as well as the terms will help you to make the right decision when choosing the perfect plan for your business.