Businesses must navigate complex gas pricing and find the most cost-effective solutions in today's ever-changing energy landscape. With a myriad of suppliers, tariffs, and variable rates, comparing business gas prices can be an overwhelming experience. By knowing the gas market, businesses can compare and improve their gas costs, resulting in significant savings.
Understanding the Factors Influencing Business Gas Prices
Before embarking on a price comparison journey, it's crucial to grasp the factors that influence business gas prices. These factors include:
- Business Size and Consumption- Large businesses with higher gas consumption typically can secure lower unit rates compared to smaller businesses with lower consumption. This is because of the amount of gas that these businesses use. For example, large businesses with a half hourly meter can usually benefit from more competitive pricing.
- Contract Type- A Fixed-rate tariff can provide businesses with price certainty over a fixed period. Whereas, variable-rate tariffs fluctuate with market prices. Your business needs to choose a contract that will suit you at that time. For example, if energy prices have been predicted to rise then signing a variable rate tariff is only going to lead to you paying higher energy bills in the long run when prices rise. With the current market volatility, we have seen in the UK over the past couple of years it
- Location- Geographical location plays a role in gas prices due to variations in distribution costs and infrastructure. The location of our businesses affects how much standing charge they will pay. If the region of your building is remote and densely populated then you will usually pay more. This is because there are fewer buildings and homes to power in that area. Whereas, places where there are lots of buildings to power such as a city centre usually pay less because of spread out costs.
- Standing Charge- This fixed fee is charged regardless of consumption and covers the supplier's administrative costs. As mentioned above the standing charge may vary depending on factors such as your location.
- Additional fees- Some suppliers may impose additional fees for early termination, meter readings, or environmental initiatives. Any extra charges you should be made aware of on your bills. Some businesses will get caught by extra charges imposed by their supplier. One way to avoid this could be to sign your contract through an energy broker or consultant. At Resolve Energy, we will ensure that the businesses we work with know exactly what payments they will have to make throughout their contract.
Comparing Business Gas Prices: A Step-by-Step Guide
- Gather Information- Collect your business's annual gas consumption, contract end date, and current supplier information. This information will be used to find what prices are best for your business at the date you will need your next contract to start.
- Utilize Comparison Websites- Employ online comparison tools that aggregate data from various suppliers, providing a comprehensive overview of tariffs and prices. Comparing lots of different suppliers will give you different price options from various suppliers so you can choose the best options for your business.
- Consider Third-Party Brokers- Engage energy brokers who specialize in business energy procurement, offering personalized advice and negotiation services. At Resolve Energy we have a team of energy experts who procure energy contracts for our clients. By signing your energy contract through Resolve, you will get your very own account manager who will compare and procure energy for you as well as
- Contact Suppliers Directly- Reach out to potential suppliers directly to inquire about their latest tariffs and negotiate the best possible deals. Finding information from suppliers although effective can be time-consuming. By doing this you can also miss out on savings you could get from a broker being able to negotiate a better price.
- Evaluate Estimated Annual Costs- Compare the estimated annual costs provided by different suppliers, considering not only the unit rate but also the standing charge and any additional fees. Evaluating how much you will spend together with each supplier makes sure you are choosing the cheapest tariff overall.
Additional Considerations for Business Gas Price Comparison
- Factor in Green Energy Options- Consider switching to green energy tariffs to reduce your carbon footprint while potentially benefiting from government incentives.
- Evaluate Payment Options- Choose payment terms that align with your business's cash flow and budget.
- Negotiate Effectively- Leverage your bargaining power and consumption volume to negotiate the best possible rates with suppliers.
- Review Regularly- Regularly review your gas tariff and compare prices to ensure you're always on the most cost-effective plan.
Comparing business gas prices in 2023 requires diligence, understanding, and strategic negotiation. By following these guidelines and staying informed about market trends, businesses can effectively optimize their energy expenses, contributing to overall cost savings and financial stability. Remember, the energy market is dynamic, so continuous evaluation and proactive engagement with suppliers are key to maintaining a cost-effective gas supply.
If you're looking to save money on your energy bills then why not get in touch today? The relationships Resolve Energy has developed with over 24 of the UK’s biggest business energy suppliers allows our energy experts to source the best business energy rates available for your company right when you need them. Request a free quote today and start saving money on your energy.