Many businesses simply inherit their metering tariff when they move into a business property from the old business, blissfully unaware that other more cost effective tariff structures are easily available to them.
Lets take a recent example of a nursery that many years ago used to be a care home
(this example can be used in many scenarios).
Historically, the care home used a high percentage of electricity at night time (midnight until 7am) for washing and drying bedding together with some food preparation for the following day. The electricity tariff was set to a day/night plan which offered a lower rate during the night with the flipside being a premium on the day time unit rate. Due to the relatively high night to day usage ratio this tariff proved cost effective for the care home.
Once the property had been converted into a nursery there was very little night time electricity usage with 95% used during day time hours. The owner was about to agree a new contract based on the previous day/night tariff structure as they did not realise that other options were available until they contacted us.
An unfortunate fact is that it is not the suppliers responsibility to advise you on the most cost effective options available so if you don’t know what is available then you can never be sure that your needs are being put first.
After a free discussion with Business Renewals we recommended to the nursery that a premium free single rate tariff which provided an immediate saving of over 15% over and above the day/night plan be put into place (with the same supplier).
There are many different types of energy tariffs available to small and medium sized businesses, many of which come at no cost whatsoever to implement and can generate long term savings so make sure to ask before you agree any terms.
If you are unsure about your electricity tariff being the most suitable for your business needs we are happy to provide a free and independent look at the way your tariff is set up to ascertain if there is a better, more cost effective way to procure your contract needs.