Business Electricity Comparison - A Manufacturers Checklist

05 April 2017

Business Electricity Comparison - A Manufacturers Checklist

One way you can save money as a manufacturer is by doing a proper business electricity comparison when it’s time to renew your contract. Follow this checklist to ensure you get the best deal.

Before You Start

  • Check the date your current contract finishes and check the termination terms
  • Get an understanding of your current electricity use by looking at the contract you currently have and the amount you actually pay (this will be on your bills). You can also get details of how much electricity your business uses by looking at your bills.
  • Get an understanding of how and when your plant uses electricity.
  • Think about your electricity use in the future – will there be any changes in your business that will affect your electricity use?
  • Make sure you have all the information you will need to get the most accurate quote possible. To do this you will need:
    • Your most recent electricity bill
    • The registration details of your company
    • The end date of your contract
    • Your MPAN number. MPAN is your Meter Point Administration Number. You will find this on an electricity bill from your current provider. The MPAN has two rows of digits - eight on the top and 13 on the bottom.
  • Know your business electricity profile class. There are seven business profile classes. Your class is based on the pattern and load profile of your electricity consumption.
  • Check your credit rating as businesses with good credit ratings get the best prices.
  • Think about how you want to pay and consider paying by direct debit as you might be able to get a discount.

Getting Quotes

  • Get a list of all the electricity suppliers you will phone (you normally have to get quotes for business electricity over the phone rather than online).
  • Make sure the list of suppliers you phone is diverse to include large suppliers, small suppliers, and specialist suppliers.
  • Make phone calls to each of the suppliers on your list

Doing the Business Electricity Comparison

  • Compare the unit rate of each quote - this is the cost of the actual energy you use.
  • Compare the standing charge of each quote - this is the fixed charge that will be in place for the duration of the contract.
  • Compare the annual estimated cost of both charges together.
  • Compare the contract term taking into account the needs of your business and your attitude to risk. For example, a longer contract will lock the price you have to pay for electricity for a longer period of time, while a shorter contract will mean you can research the market again sooner and may find a better deal.

Making a Final Decision

  • Create a shortlist of electricity suppliers offering the best deals
  • Call each of the suppliers on your shortlist back to haggle a better deal
  • Consider any additional benefits or discounts of each supplier
  • Read reviews of the suppliers on your shortlist
  • Check the contract terms thoroughly including if there is a cooling off period (this is not normal) and what happens at the end of the contract term
  • Make your final decision and complete the paperwork
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