Although it is possible to cancel a business gas contract early, you should always speak with your supplier first. Most business contracts will involve an early exit fee which is often much higher than for domestic deals.
You can secure a new deal up to 12 months before the end of your current deal when your renewal window opens. This means if you find favourable rates when you compare business gas prices, you can lock those rates in early.
There are a few differences between a domestic and business energy contract. First of all, business energy contracts are much stricter, and the exit fees are much higher.
A business energy supplier will purchase the exact amount of gas and electricity they’re expected to need for each business energy contract. As the energy consumption is much higher with businesses, the energy supplier would lose money if businesses cancelled early without paying.
It is much easier to switch domestic energy as the consumption is much lower, and contracts tend to be rolling after a fixed-rate deal has ended.
Your business credit score can impact the suppliers available, your tariff type, and unit rates.
A credit rating scores your business on a scale of 1-100. The higher your credit score is, the better. Businesses with a high rating are judged to be in a stronger financial position.
Businesses with a score of 40 or more are likely to have access to cheaper energy deals. You credit score will be calculated on a variety of factors including:
The size of your company and number of employees.
Whether you have failed to keep up with your bills.
Your successful and unsuccessful finance applications.
The credit history of your company directors.
A lower credit rating can limit your options when switching business energy suppliers. Some energy suppliers won’t accept businesses with low credit scores. Whilst others may limit the tariff options available to you.
Energy suppliers who accept businesses with low credit scores may take other steps. This can include:
Looking for ways to reduce your overheads? Corporate Utilities offers better business energy rates and tariffs. Our consultative approach gives your business access to an exclusive energy comparison service for business gas, electricity and water. We work with the UK’s most trusted suppliers to ensure you get the best deals for your business.
Do you know whether you’re overpaying your business gas, electricity or water bills? Would you like to switch to a cost-effective, green and sustainable energy supplier? Find out how we can help you reduce your bills and increase your profit margin.
