Can I have a business energy contract if I work from home?
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One of the main differences between business energy prices and domestic rates is that business energy rates fluctuate. Why?
Unlike domestic energy prices business energy prices can alter every day – and even several times a day sometimes. This doesn’t happen often but it’s not unusual and can explain why you’re offered different prices the following day.
Energy suppliers don’t just buy energy in advance. Much of their energy is bought as and when new contracts come in. But wholesale energy costs can change every day a bit like the stock market. Global events and supply and demand impact on any changes that may occur meaning wholesale prices can change a number of times each day. If a supplier buys energy on the wholesale market in the morning the price they pay can be different from the one they pay if they buy energy in the afternoon. If these changes are significant a supplier may withdraw prices and introduce new ones. It doesn’t happen often but it’s possible for price changes to occur several times a day.
Suppliers also buy their energy in advance which is why it’s important to let them know how much energy you use each year. They need to have a rough idea of how much energy they will need to supply in two or three years’ time. When energy suppliers buy their energy they have to not only try to predict how much energy they will need in three years’ time, but also the cost of that energy in three years. This also obviously impacts on the prices you are offered.
Energy suppliers buy energy on the world market so events across the world can affect prices on a day to day basis. For example the Japanese tsunami a few years ago resulted in Japan shutting down all their nuclear reactors for a time and moving to gas fired power stations. This meant a greater demand for gas on the wholesale markets and an increase in prices.
Political unrest can also impact energy prices. The current situation in Ukraine means that any sudden changes in international policy can affect how much suppliers have to pay.
The weather can also influence wholesale energy prices. Last year we had a fairly warm winter and as a result gas reserves remained high and gas prices low. However, if there’s a cold winter and everyone turns their heating on full, more gas is used, demand increases and so prices go up. But when you’re buying energy in advance it’s impossible to know if the weather’s going to be good or bad in two, three or four years’ time, so impossible to know if prices are going to go up or down.
Business energy bills are made up of largely wholesale costs so this volatility in the wholesale energy market can explain why prices fluctuate from one day to the next. It makes comparing business energy prices difficult and is why it’s a good idea to use someone like SwitchMyBusiness.com. Our energy experts will be able to advise you on the most suitable deal for your business and they will know the state of the current market – whether prices have just gone up or if they have just dropped so you can make an informed decision on your new energy contract.
But there will always be the chance that once you’ve made your choice and agreed a contract that the next day someone else will offer you lower prices. It’s just the same as when you buy a new pair of shoes and go to the same store the next day and they are on sale at half the price. It’s impossible to know exactly what will happen in any given situation but by comparing prices you know you’ve done your best to ensure your energy prices are as low as they can be.
You can read more about business energy on our electricity page.
"Very easy. Bea Luseni very efficient & knowledgeable."This review was posted by Alan Duffy on the 31st of March 2017
Super helpful and easy to work with
"Recommend this company in a heartbeat - Nicole Borneuf was super easy to talk to, was not pushy in the slightest, very helpful and replied with all my questions very professionally and did all she could to help. I had to deal with a few companies to sort my business energy out, all but Nicole were too pushy for my liking and I refused to follow through with them. Thank Nicole - you are a credit to your company, thank you for making the stressful energy change so easy."This review was posted by Mia Drew on the 29th of March 2017
An Extremely Competent Company
"Switch my business has not only helped my SME secure a good energy deal for the second year running but Jessica swiftly found a alternative supplier for me when I was let down on the day of switching by the new contractual provider I had chosen some 4 months previously. Being suddenly out of contract and without provider is everyone's energy nightmare. Greatest thanks."This review was posted by S McMillan on the 29th of March 2017
Helpful, friendly and we saved lots of money!
"Jessica Purnell was helpful and friendly, she made the whole process easy and simple AND we saved lots of money thanks Jess"This review was posted by Melanie Baker on the 23rd of March 2017
Quick & Easy
"Kabibi was very helpful and the whole process was very efficient. The one small reservation I had was that I was phoned up by Kabibi almost immediately having received my online quote - which wasn't enough time for me to finish reading the quotes! Fortunately she was able to assist me in a greater savings on both Gas & Electricity, and so as long as the switchover is seamless I will remain very happy with the service."This review was posted by Amanda Brown on the 21st of March 2017