Switching from the existing energy supplier's standard tariff to a cheaper tariff energy deal is a quick and easy way to cut the cost of your business electricity and gas bills. To get the best business energy deal in the market, make sure you compare the business energy prices regularly and then switch.
With effect from April 2020, the charge on standard variable tariffs has been lowered to £1,162/year. Though the energy price cap is likely to keep prices low for customers, the best option to save more money on business energy bills is to switch energy supplier or move to a better deal.
It is known that the price cap and prices are revised by Of gem twice a year and mostly prices go up. But this time, price cap has been decreased and customers can save a lot by switching energy suppliers and to a cheap fixed deal.
Now, the question arises when can I switch energy supplier without penalty? In this article, we will explain how you can easily switch energy suppliers without exit fees or penalty charges and save a lot of pounds on your business energy bills.
If your business energy deal comes with a penalty fee or early exit fee before your contract ends, then you have the option of avoiding the penalty or exit fee by making sure you switch energy supplier once your contract has 49 days or fewer left to run. As per Of gem rule, business energy suppliers cannot charge an exit fee if you switch within a 49-days window. The rule states that energy suppliers in the UK can’t charge exit fees to their customers if the contract is within its final 49 days. This is normally the suitable time to switch energy suppliers. This means, even if your contract has a penalty fee attached, you can still leave your current energy supplier during the last 42 – 49 days of your contract, without being charged.
Cheap energy tariffs don’t last forever and if you stick with your business energy provider, you could pay a huge amount of money for energy. Stay on top of it with this guide.
You should ask yourself a couple of questions before you switch energy suppliers:
- When Can I Switch Energy Supplier Without Penalty Or An Exit Fee?
You can switch energy suppliers whenever you want without paying a penalty or exit fee if you are on a standard variable plan. However, you will be charged an exit fee if you are on a fixed term plan. If you are not sure about the exit fees and attached penalty information, give a call to your supplier and get the information.
But there is a small window on a fixed term plan i.e. 49 days window. You can switch energy suppliers without paying an exit fee or penalty if your contract is due to come to an end or within 49 days before your contract ends. This is the perfect window in which switching energy supplier process becomes easy and penalty-free. It’s worthy to keep an eye on when your current contract is about to get over if you are on a fixed term plan. If you face any trouble with your energy supplier regarding the 49-day window, highlight them to the Ofgem rules and regulations.
- Who Is My Business Electricity And Gas Provider?
The very first thing you should be aware of, who is your business energy supplier? This information can be collected online and you will also come to know the kind of tariff you are on. Once you have the information about your business energy supplier, you can ask your tariff details and further good deals. There are possibilities that you are on a default tariff if you have not switched energy suppliers in recent years. That means you are paying too much for your business energy.
- Am I On A Fixed Or Variable Tariff?
While switching energy supplier, this question matters a lot because you can switch to a new business energy supplier at any time without penalty if you are on a standard variable tariff. But there is an exit fee if you have a fixed-term energy deal, and you want to leave the contract before the contract ends. This exit fee or penalty can be as high as £60 for dual-fuel consumers.
- Profit-Loss Balance Sheet
Sometimes it is worthy to cancel the business energy contract with the energy suppliers who are providing very high-fixed term tariffs. Better to pay the penalty or exit fee and switch energy supplier as per the most competitive deal. You calculate and do your sums; for example, find the most competitive deal for your business and subtract the exit fee/penalty and then finally you come to know how much you could save by switching supplier. If the difference is really good, make the switch without giving a second thought.
- Should I Stay With My Current Supplier If They Offer A New Tariff?
One more aspect comes in when you switch to a new tariff with your current supplier.Sometimes your energy supplier waives the penalty fee entirely. From this point of view, it makes financial sense. You can always give a call to your energy supplier and let them know your long-term deal if there is no penalty fee.
- Can I Avoid Fees Altogether?
Some energy suppliers don’t charge an exit fee or penalty. Many small energy suppliers offer contracts with no fees just to be competitive in the market and make someplace in front of bigger suppliers. You may also find that some energy suppliers will allow you to move between their own deals without charging exit fees.
Switch Energy Providers With Business Energy Switchers
Switching to a business energy supplier is easy and hassle-free. Business Energy Switchers is always there for your assistance. We compare business energy prices from the UK’s leading providers to beat your existing renewal price and make sure you get the best possible deal. Save money on your business energy bills by switching your energy supplier without penalty at the right time. Switch business energy suppliers near the end of your contract. We bring you the best business energy deals that could save you hundreds of pounds a year. Simply visit our website at www.businessenergyswitchers.com and get the quotes online. Time to decide whether to switch or not to switch... Stay tuned for more updates and articles.