Each year there are more and more gas suppliers launched in the UK. With many going bust, it can be hard to find a company that suits your needs and comparing suppliers can be overwhelming.
Did you know that over 50% of UK customers are supplied by one of the original big suppliers?
Well, according to a recent Which? satisfaction survey, all of these big suppliers were in the bottom seven of the 25 energy suppliers in the list. So many people may be getting poor service by sticking with the big companies. This just shows there is a reason why you should be shopping around.
But how do you find the best company? How do you sort the better suppliers from the rest? This guide will give you all you need to know about comparing gas suppliers.
Standing Charge Tariffs Vs Non-Standing Charge Tariffs
A question that many people ask is whether it is better to be on a standing charge tariff or a non-standing charge tariff. This depends on your requirements and needs.
The benefits of standing charge tariffs are that they will more than likely have a lower unit price. An advantage to being on a non-standing charge tariff is that you’ll only pay for the energy you use.
So, if you aren’t using gas for a long time, you won’t be charged anything. For standing charge tariffs, a daily fee is paid even if you don’t use any gas.
Even though the unit cost will usually be higher, it can be reduced when a certain amount of gas has been used. This can be cost-effective to businesses with more than one location or site. Deciding what tariff to use is dependent on how frequently you use gas.
An example for a site in Edinburgh, using 50000kWh a year, for a new contract starting in June 2020:
| Contract Length (months) | Unit Rate (p/kwh) | Standing Charge (£ per day) |
| 12 | 2.7 | 1.62 |
| 12 | 3.88 | – |
| 24 | 2.62 | 1.71 |
| 24 | 3.87 | – |
| 36 | 2.64 | 1.85 |
| 36 | 3.99 | – |
Does The Tariff Suit Your Requirements?
When comparing gas suppliers, you should check that they offer tariffs that suit your current needs, as well as having other tariffs available if your needs change. Usually, there are three types of business energy tariff, they are:
- Fixed Tariff – these are for typically a 1 to 5-year contract under a fixed rate per kWh.
- Variable Tariff – depending on wholesale prices, energy rates can go up or down.
- Flexible or Rollover Tariff – a monthly rolling contract that uses variable rates.
The majority of energy suppliers will be able to offer all three tariffs, along with other special deals. Some may only offer one contract, so it is important to research what is available as well as the contract matching your energy requirements.
What Are Their Customer Reviews?
We all love good customer service. This applies to gas suppliers too.
Having good customer service is essential for business energy. As stated above, some of the biggest energy suppliers actually rank as the worst for customer service. Having a good relationship with your gas supplier makes the process much less stressful, with queries being resolved in a short space of time.
Trustpilot is usually a good website to use when comparing energy companies. Customers actively leave reviews, both good and bad to give a gauge of the service you’ll expect from different companies.
It is worth noting that unhappy customers are more likely to leave a review than happy customers. Check out more recent posts, as some energy suppliers have recently invested into better customer service.
Are They A Green Company?
Is green, renewable energy important for you? Based on statistics, it is for customers.
According to a study by Vestas, it was revealed that 85% of consumers want more renewable energy. Not only this but 49% would pay more for products made with renewable energy.
For a greener company that can help to drive more customers, you can see the fuel mix for all energy suppliers in the UK. Thanks to the Fuel Mix Disclosure, energy suppliers are required to supply a breakdown of where their fuel comes from and how green it is.
There are a few suppliers that offer 100% green suppliers, some offering less. Be careful, as some energy companies are labelled as ‘green’ without any set definition of what their ‘green’ means.
Do your part for the environment, research and keep green credentials in mind. Customers will be more likely to use a business that is supplied by green energy.
Is It Easy To Switch?
Did you know that six million customers switched energy supplier in 2020? Also, it may come as a shock but on average, half a million customers moved to a new supplier every month in 2020. These statistics from EnergyUK show that customers change energy suppliers often.
But many choose to stick with their energy supplier, most finding the switching process to be too complicated.
Some energy suppliers make switching easier than others. As we stated before, you could be saving a lot of money when switching. It is recommended to research how easy companies make it to switch when deciding which supplier to use.
Most energy suppliers use the same basic strategy, however, how they handle switching is dependent on their internal process. Check out reviews to see what other customers’ experience was when switching supplier, as well as seeing estimated time scales on the supplier website.
Do They Have A Good Complaint Handling Record?
Great prices are amazing, but being able to resolve issues is invaluable. Different energy suppliers offer different levels of customer service.
Ofgem offer statistics on how well energy companies resolve complaints. Complaints can be very frustrating, especially if it takes time and causes delays to your business. You want complaints to be fixed as soon as possible, with some energy suppliers doing this better than others.
Are Their Energy Contracts Scalable To New Requirements?
We all want our business to grow, right? For business growth, having a scalable energy supply is key.
When your business grows, this also means more energy is needed. It can be a good idea to use a supplier that is happy to renegotiate your rates. If not, you may be stuck with higher prices which can cause pricing issues.
Typically, the more energy you use, the lower your price per kWh is. However, if you’re trapped into a contract with a company that isn’t willing to negotiate, they have no obligations to offer you cheaper rates before your contract ends.
Of course, sometimes business growth can be unexpected and some energy companies may be unclear about renegotiating deals. It is recommended to view the supplier’s cancellation and exit fees before agreeing to a contract.
If you do see the business growing, but the energy supplier won’t renegotiate, then having lower cancellation and exit fees can save you a lot of money if you decide to look elsewhere. Even if you don’t see a growth in energy requirements, it’s good to plan ahead and know there is a cheap way out.
Other Benefits Worth Looking Out For
With energy companies fighting for your business, many offer benefits which could sway you into using their business. Check out these benefits and see which suppliers offer them:
| Benefit | Explanation |
| Energy And Broadband Deals | Being able to bundle together your gas contract with other utilities can save you a lot of money. Having everything in one easy monthly bill can also save a lot of time and stress by having it all in one place. |
| Smart Tariffs | If you have a smart meter installed, you may be offered a discount. Some companies also offer better prices for energy used at specific times of the day. For variable tariffs, you may find suppliers that alert customers when energy prices fall, giving them an advantage to cheaper prices. |
| Online and Smart Home Technology | Having the accessibility to monitor energy online or via an app can save you lots of money as well as reduce energy wastage. Many companies have user-friendly websites that offer online customer support teams and energy monitoring. Having the ability to see different sites energy usage can drastically help your business. |
| Boiler Insurance and Cover | Some suppliers will offer boiler cover and insurance to attract new customers. This can save you a lot of money if something happens to your boiler. Various companies even offer call-out repair services if have issues or if your boiler breaks down. |
| Innovative Energy Deals | Having innovative energy tariffs could suit your requirements better. Rather than using the standard tariffs which are based on a daily standing charge and unit rate, innovative energy tariffs differ. These deals are based mostly on smart meters. |
| Tracker Tariffs | Wholesale energy prices are given straight to the customer, making how much you pay for gas a lot more transparent. Whenever wholesale prices drop, savings are passed on to the customer, however, the same goes for when the prices increase. Each supplier offers different deals for tracker tariffs. |
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