How to choose the right business energy tariff or contract

business energy tariff

Switching energy provider is easy and many energy suppliers will let you move to a new energy contract when your existing contract ends. The quicker your business moves onto a cheaper contract, the sooner you start saving money. But it’s important to choose the right business energy contract to suit your business needs.

Choosing the right business energy tariff or contract can seem confusing with different options for how you pay for your energy, commitment to certain contracts and other factors to consider.
However, while individual contracts vary between suppliers, there’s generally two main types of contract to choose from: fixed rate and variable rate.

Fixed rate

With a fixed rate energy plan a customer agrees to be locked into one ‘fixed’ rate for as long as their contract runs. So, no matter what happens with energy price rises or price drops in the market, the price per kilowatt stays the same.

Fixed rate energy plans often suit businesses that want to try to keep their energy bills stable. Longer fixed terms are generally more expensive, but they offer longer protection against future price rises.

Variable rate

With a variable rate, the price is adjusted depending on changes in the market and third-party charges. It’s a bit like what happens with a variable rate mortgage, where the price paid can change.

Variable rate energy plans often suit businesses that don’t want to be tied into a longer-term contract. They could suit newer businesses, or commercial landlords who want a flexible contract during any void periods on their commercial properties.

Variable tariffs provide complete flexibility if you don’t want to commit to a fixed term contract. They also offer the freedom to move onto a different contract at any time or even switch to a different supplier.

Our expertise

All new and existing British Gas business customers can access a range of fixed or variable energy contracts that span from 30 days to 36 months – where access to certain products was previously restricted to new customers.

Head of Sales for British Gas Business Phil Manock explained:

By listening to our customers, we know they have higher expectations from their energy supplier nowadays – they want better choices as well as great prices. We used our expertise as the UK’s number one energy supplier for businesses to build a package of energy options that meets the needs of our individual customers and is fair and open to all.

Our business customers can choose the peace of mind knowing prices won’t change for three years, or the flexibility of a shorter-term commitment through our 30-day rolling energy plan. Regardless of where they are in their energy journey we’re here to support them.

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