Even though you are planning to hire an expert like a utility broker to help handle your business energy transactions, you should know about the types of business energy rates you can avail yourself of. Your awareness of your business utility rate or tariff is vital. Depending on the tariff you choose, your costs can increase and decrease from time to time, although there are still fixed options. We’ve provided some information that you should know about business energy rates.
Business Energy Rates
Business energy rates are the price you pay per unit of energy. Each energy supplier offers different rates. Aside from their marketing strategy to offer lower prices to attract clients, there are other factors that may affect the rates that they offer you. It’s important to take note that every rate is tailored to the client’s company or business. Before your supplier provides you with their quotations, they will nedd to know your company, its size, your usual consumption rate, the rates of your past supplier, and, of course, your budget. They will then analyse using this information that plans that fits perfectly to your needs.
These are the type of tariffs or plans that they can offer:
Fixed-rate
With a fixed-rate tariff, your energy costs or the price per unit is fixed monthly or annually, how often you want to pay, during the entire duration of your contract. Having a fixed tariff is beneficial when the costs of energy increase in the market, and your rate would not be affected.
Variable-rate
On the other hand, the variable tariff is a type of plan where the price per unit can either increase or decrease depending on the energy market. This means that if the prices dropped, you could definitely save more money, for you will be paying lower rates.
Out of contract rate
Out of contract business energy rates are applied to your bill if you fail to renew an expired contract or switch to a new supplier on time. These energy rates should be avoided since they can get as high as 80% of what your usual rate actually is.
Hire a utility broker to help you
If you ever have a hard time understanding business energy rates, how they are acquired and work, do not hesitate to reach out to experts like utility brokers. A utility broker or energy consultant knows everything about business energy. One of their responsibilities is to assist their clients in getting quotations from multiple energy providers. They will help you understand everything that goes into the transaction, and they can take full responsibility in processing your renewal or switch. Hire a utility broker to avoid getting into out of contract rate tariffs.
Remember that when going into the business industry, knowledge is your power. If you want to be able to navigate around, make sure that you know what you are doing. Simple information like these can already help you make sure that you are not getting ripped off or receiving the right services you paid for.
