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New business premises? Remember to fix your energy contract

Most business premises have an electricity supply but not all of them are connected to a gas supply. If you are moving in to new business premises check that your property has a gas and electricity supply before you actually move in and fix your energy contract.

If your new property isn’t connected to the gas network then there may be a charge for getting you connected. It’s important to ask the landlord before you decide which building to take on. If the landlord doesn’t know how much it will cost to get connected then you can ask an energy supplier or a company such as who will be able to help.

Reconnection fees

The building may have been connected to a gas or electricity supply in the past but it’s been disconnected for various reasons. For example, if the previous tenants didn’t pay their energy bills then an energy company will sometimes disconnect the supply. If this is the case and the supply has been disconnected then you may have to pay a reconnection fee and a deposit. This applies even if the disconnection was not related to anything you have done.

Deemed contract rates

If you take over the premises and simply use the energy supplier that’s already in place then you may end up paying deemed contract rates which are described in the article: Business gas rates and tariffs explained. These tend to be higher than the rates you would be paying if you compared the latest prices. For this reason you should compare prices as soon as possible so that you’re not paying more than you should be.

If you have a date when you will be moving into your new premises then you can compare prices and sort out your new energy contract before you actually take over the premises. All you will need is evidence of your tenancy agreement and proof that your business is real.

Compare energy prices

Business energy prices are dependent on a number of factors as explained in the article ‘Business electricity rates and tariffs explained‘ with location being one of those factors. The size of the building is also a factor so it’s vital to remember to compare prices to ensure you get the most suitable deal for your business. What might have been right for the previous tenant may not be the right deal for you.

Energy audit

To ensure your energy bills are as low as possible it is a good idea before you actually move into the property to do a quick energy audit to see if there are any savings to be made. For example, does the building have low energy light bulbs? Would it be possible to install motion-activated lighting? Would the lighting be improved if the windows were cleaned? Do you want to generate your own electricity by installing solar panels? Take a look at the article: Investing in energy saving: 7 ways to cut your bills for further advice.

When you’ve fixed your energy contract and you move into the building the first thing you should do is take a meter reading at both your old premises and your new one. Let your old supplier know the meter reading and where you’ve moved to so that they can send you an accurate final bill.

Once you move into your new property there are many different ways of reducing your business energy bill – take a look at our energy saving tips to see what else you could do to save energy.


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