Buying business energy isn’t the same as buying it for your home and the main difference is that households can choose from a range of pre-determined tariffs from suppliers – such as dual fuel, fixed, or green tariffs. Commercial energy deals on the other hand, are tailored to meet the exact needs of individual businesses, taking into account factors such as size, location and the type of industry they’re in. Other differences between commercial and domestic energy deals include:
- Cooling off periods – unlike domestic deals, business energy deals don’t come with a 14-day cooling off period, so you need to be confident that the plan you have in place represents value for money.
- Contract length – business energy deals generally last longer – up to five years with some fixed term contracts, whereas domestic contracts usually last between one and two years. If you don’t have a contract in place (either as a domestic or business user) you’re likely to pay a lot more for your energy compared to those that do.
- Ability to exit your contract – not only can domestic energy users cancel a contract within the cooling off period, they can technically leave at any time – subject to any conditions and payment of cancellation fees. Business energy users can’t cancel contracts and have to stay with their supplier until the agreement reaches its end date.
- Fixed rates – business energy tariffs are usually fixed for the length of the contract. Domestic energy prices can vary (unless bill payers have agreed a fixed tariff) depending on the wholesale price, supplier costs and tariff type.
- Flexibility – commercial energy deals are more flexible in the sense that they’re based on use and business owners can often agree mutually beneficial deals. Domestic users on the other hand, are limited to the energy tariffs available on the market.