Business energy myth buster – 3 myths debunked

Did you know that over half of the UK’s electricity is generated in gas-fired power plants? 

It’s no secret that a global surge in demand for gas has led to a dramatic increase in UK wholesale energy prices over the past couple of months. 

A series of nuclear reactor outages and the fact that a major power cable bringing electricity in from France has closed has exacerbated the issue.

As the weather gets colder and demand for gas increases further, experts are concerned that the situation could worsen. 

Many businesses rely on energy to operate, and most firms require energy in some form or another – whether it's to power their offices or keep their servers up and running. 

According to reports, Business Secretary Kwasi Kwarteng has submitted a formal bid to the Treasury for financial assistance. 

Under the plans, companies threatened with closure would receive loans to stop them closing over the winter and prevent thousands of jobs from being lost.

To help avoid the unpredictability of the energy market, some business owners might be looking to secure a competitive energy tariff now. 

If you’re one of them, you might be wondering whether it's worth the hassle and cost. 

As you’ll see in the debunked myths below, you can secure a new deal in minutes and save money by doing so. 

Myth 1 – It costs more to switch

Some business owners still think it costs more to switch energy suppliers, and it’s better to try and negotiate a better deal with your existing supplier. 

The truth is you can actually save money by switching. 

Many of the most cost-effective energy tariffs aren’t easy to come by, especially if you go directly to the supplier. Instead, try a business energy comparison tool to search for a new deal, and gain access prices that are otherwise unavailable. 

Compare your current supplier’s business energy offer with the ones you find through our comparison tool. The results may surprise you!

Electricity pylon

 Myth 2 – Switching is time-consuming

Times have changed, and although some energy companies are folding or struggling under the strain of the energy crisis, there are still more than there were ten years ago. 

Choice is a good thing. But with dozens of energy suppliers out there, researching and comparing each one can prove time-consuming and complex. 

Fortunately, we can do the hard work for you. 

Our business energy price comparison tool is powered by Love Energy Savings. It enables business owners like you to compare the best business energy deals in the market and switch to a cheaper tariff in minutes.

Let us know a few basics, such as your postcode and energy habits, and we’ll pull up a tailored comparison of gas and electricity deals in your region in just a few seconds. 

 Myth 3 – I need to wait for my current deal to expire 

As long as you’re within 12 months of your current contract end date, we can switch you to a new business energy tariff. Once you’ve agreed to the terms of your new energy deal, the tariff will go live as soon as your current term is complete. 

Businesses often take this approach during uncertain times (such as the one we find ourselves in now). If you’re concerned that prices may have increased by the time your renewal date rolls around, you may want to line up a new tariff today. 

Fixed rate tariff 

Fixed energy tariffs come at a fixed cost for the duration of your contract, which can be anywhere from one to five years. This means you’ll pay the same amount each time. Fixed rate tariffs offer businesses security and deals are often more competitive.

Variable rate tariff

Variable rate tariffs change in line with the energy market. 

So, if market prices fall, you can expect to pay more, and vice versa. In this sense they carry a higher risk than fixed rate tariffs. 

Unfortunately, small businesses aren’t covered by the energy price cap, which is the maximum charge a supplier can bill households for their default tariffs. Compare business energy options today to see if you could save money.