As a business owner, there are a lot of very important decisions that you’re forced to make. Choosing your utility supplier might not seem like an important decision, but it truly is! Whether you’re starting a new business or considering changing suppliers, you’ll be dealing with the current energy crisis.
In today’s environmentally conscious world, many businesses are actively seeking ways to reduce their carbon footprint. When choosing a gas provider, exploring renewable energy options is essential. Some suppliers now offer renewable gas contracts, also known as “green gas,” which is produced from organic sources like biomass or biogas. By opting for a green gas contract, your business can significantly contribute to sustainability efforts and showcase your commitment to the environment.
Choosing to sign a contract with the best supplier for your business can be the key to ensuring that your utility bills don’t skyrocket. The big question is what you should consider when shopping for a gas supplier.
The best place to start if you already have a supplier is to make sure your business gas provider is giving you the best rate. If you feel like you can get a better rate somewhere else, then it’s time to switch providers.
Consider Your Business Needs
Now, the best thing to do before you start shopping for a new supplier is to make sure you’re well aware of what your business needs. You need to look at the size of your business and what the gas would be used for.
Your location, or the locations, of your business, may also dictate which gas suppliers and tariffs are available to you. If you have multiple locations, a multi-site contract might be the most affordable option.
However, not all energy suppliers offer multi-site contracts, so your options might be limited. While you can’t get dual fuel contracts for business use, some suppliers may offer better rates if you choose them for your electricity and gas needs.
Tariff
The type of tariff you’re on will also affect how much you pay your gas supplier every month. There are two types of tariffs available for gas contracts: fixed-term contracts and variable contracts. The best tariff for your business depends very much on your business needs.
Fixed
With a fixed tariff gas contract, your standing charge and unit price will remain the same for the duration of your contract. This means that the amount you pay for your gas supply will depend on how much you use.
This is a great option as you can calculate how much gas you’ll use in advance. It also means that you won’t be affected by any fluctuations in the wholesale price of gas. You will know exactly how much you need to pay for gas for the duration of your contract – which could be up to four years.
Looking to the future, fixed contracts will typically come with a hefty cancellation fee if you decide to cancel your contract early. You’ll also need to make sure you renew or terminate your contract within a certain time frame to avoid being put on a rollover contract.
A rollover contract will mean that your gas supplier can charge you their standard rate, which is typically high, for a full contract term. It’s important to keep track of the important dates with this contract so you’re not caught by surprise and can avoid unnecessary fees.
Variable
A variable tariff is less safe of choice than a fixed one. With the variable tariff, your supplier can change the unit rate and standing charge from month to month. Fluctuations in the wholesale market will likely affect how much you’re paying for your utilities.
This means that your bills can increase every month even if you’re still using the same amount of gas as you were the month before. At the same time, this does mean that you might also benefit from fluctuations in the market and have to pay less if the market price is good. If you don’t use much gas or own a small business, the risks might be worth it cost-wise.
Looking to the future, this contract is easy and painless to get out of. These contracts are flexible, so you can cancel and switch providers whenever necessary.
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Final Thoughts
When looking into a gas supplier, make sure you’re considering your current and future needs. The size of your business and the expected growth are the biggest things to consider, followed closely by the kind of contract you choose. Each type of tariff comes with its own set of pros and cons; it’s about accurately deciding which type is best for you.
Choosing the right business gas provider is a significant decision that can impact your operational costs, environmental impact, and overall satisfaction as a consumer. Assess your business needs, explore renewable energy options, and carefully evaluate contract terms and customer support before making a final choice.
By conducting thorough research and comparison shopping, you can find a gas supplier that best fits your business requirements, setting the foundation for a successful and sustainable future.
