Once you know what type of tariff you need, it’s time to get some quotes and compare them. Before you start, it’s best to get an up-to-date meter reading so you can get the most accurate quotes.
Whatever you do, don’t make your decision based on the annual estimate alone. When giving you an annual estimate, different suppliers may include or exclude different costs. The real trick is to compare small business energy prices like-for-like. To do this, here are three cost areas you'll want to look at.
Ensure that fixed really is fixed – check the flexibility of the non-energy costs (sometimes called pass through costs) such as Feed in Tariff Levy (FiT) or Capacity Market charges
If, like most small businesses, you opt for a fixed contract, be sure to check the conditions around non-energy costs. Some suppliers don’t fully fix this cost and you could end up with extra charges mid-way through your contract.
Know what’s included or not – check the Climate Change Levy (CCL) and VAT
Some suppliers don’t include these in their quote because certain businesses and organisations (for example charities or some businesses based in a residence) are entitled to exemptions or partial exemptions. So be sure to adjust your comparison of the total costs to compare like-for-like. EDF Energy has a handy guide to CCL and VAT if you want to find out more.
Factor in discounts and extra charges
Some suppliers, including EDF Energy, offer discounts for paying by monthly Direct Debit. This can be an easy way to shave a few pounds off your bill.
On the flip side, some suppliers may charge you a premium for paying by cash or cheque, so always account for this in your small business energy plan.