Look long-term for the best energy deals
Businesses are being urged consider energy deals that will be better in the long run, rather than settling for short-term deals.
British businesses have been urged to consider energy deals that will be better for the company in the long run, rather than settling for short-term deals.
Energy Advice Line has advised that companies could be better off opting for longer-term fixed-price business electricity contracts instead of cheaper 12-month deals. Although these deals are generally more expensive in the short-term the savings could be significant in the long run as energy prices are expected to keep on rising.
Julian Morgan, managing director of the UK’s leading business electricity price comparison and switching service, said most businesses tend to be lured in by short-term deals because they appear much cheaper on paper compared to the two or three year contracts. “But they could be losing money by doing this,” he said.
Research by the comparison site found that 75% of customers went for 12-month contracts in the first quarter of 2012 because they offered the cheaper rate of 9.58p/kWh for the quarter.
“But because business electricity prices have risen by 15% in that time, customers who locked into these cheapest deals would have been better off paying a premium and opting for longer-term contracts,” Mr Morgan said.
“These customers are now coming back onto the market because their 12-month deals have ended to find that business electricity prices are now 15% higher.”
Customers who would have taken a two-year contract at the start of 2012 would have paid 6.7% more for their electricity than if they had taken out a 12-month contract. However, as energy prices have increased by 15% between now and then, this would have been recouped with the added assurance that the rate will stay constant into the future.
Author:
BizSpace
BizSpace is the UK’s leading provider of regional flexible workspace. For over 20 years we have been providing offices, studio space, industrial units, workshops, warehouses and storage facilities to a wide range of businesses in convenient regional locations across the country. We are owned by Sirius Real Estate, a commercial property operator, that is supporting us on a journey of significant growth.
More BizSpace News
Blog
The Office ‘Icks’ of 2024: Survey Reveals Workplace Habits That Annoy UK Employees the Most
A recent BizSpace online poll of 2,000 UK office workers asked the question: what’s the one office habit that gets…
Find out moreResources
An Analysis of the UK’s Business Landscape: Best and Worst Locations for Businesses in the UK 2024
Introduction The business environment in the UK is dynamic and diverse, with different regions providing different opportunities and difficulties for…
Find out moreBlog
Finding a Small Industrial Unit or Workshop to Rent
Let’s be honest with each other, finding a ‘perfectly sized’ industrial unit for your business isn’t exactly fun. It’s time-consuming,…
Find out more