On the surface, switching to a new supplier is simple. However, deep down, there is so much involved. There are steps to be followed. Getting these steps right is very important. Still more, simple mistakes can cost your business. That’s why the information in this guide is all you need before making a switch.
What You Should Have
Before making a switch, you need to have the right information. Ensure that your latest bill contains the following information:
- Current supplier
- You need the name of your current supplier.
- gas tariff
- You will need to have the current tariff and the payment method you have been using
- Meter information
You will also have to produce the meter number, unit rate, and how much you have been consuming annually.
What To Expect After Switching
Your new supplier will go through this information and make a response. The response is aimed at confirming the changeover. In the response, you will be supplied with the agreed costs, dates, as well as payment method. Don’t proceed before ascertaining the correctness of these details. It’s very important.
Don’t interfere with your direct debit. Wait until your previous supplier sends you the final bill.
Business Gas Versus Domestic Gas
Most businesses tend to purchase gas in bulk. Still more, they have longer contracts. This makes business energy rates cheaper than their domestic counterparts. However, it’s important to note that business and domestic gas are subjected to a VAT of 20 percent and 5 percent respectively. Also, the usage and business size play a key role when it comes to determining the rates. For instance, large businesses (with a consumption of 55,000kWh) can benefit from half-hourly based metering.
Factors Affecting Business Gas Prices
Global gas prices keep on fluctuating. There are several factors that contribute to these fluctuations. Common ones include:
Wholesale prices—How is the wholesale industry doing? If wholesalers settle at a higher price, the price of electricity for business will be higher.
Supply and demand—The law of supply and demand applies to gas. If more people or businesses want gas, the prices will be higher.
Currency prices—How strong is the local currency? A weak local currency means that you will pay more to get the same amount of gas.
Fees and levies—How much does the regulator charge? What are the levies from the government? A caring government will lower the levies and pass the benefits to the customers.
Fixed Pan Is Better
If you don’t want these fluctuating prices, choose fixed-rate tariffs for your business. You will pay a constant amount throughout your contract, irrespective of the fluctuations in the market.
The Bottom-Line
Switching a gas supplier isn’t all about changing your supplier. It goes beyond this. It also involves getting the right rates. It has to do with choosing the best prices or tariffs. You need to have all the paperwork done. You should read the contract carefully. In a nutshell, you should have the right information before switching your current supplier. The above guide will help you get it right before making the switch.
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