Choosing a Business Energy Supplier if You're a Hotel

12 April 2017

Choosing a Business Energy Supplier if You're a Hotel

Millions of businesses in the UK (including many hotels) pay too much for energy because they are on the wrong contract. This usually happens because businesses don't bother to renew or don't fully check the options available.

If you run a busy hotel, this can be understandable. After all, there are significant pressures on you already without having to allocate time to investigating the current deals being offered for your gas and electricity supply.

Given the fact that many hoteliers opt for long-term contracts (some are as long as five years), it’s worth taking the time to research the market when your contract is up for renewal. Over the duration of the contract term, the savings can be significant.

Getting Started

The first step in the process of choosing a new business energy supplier is to review your current contract and recent bills. This will firstly tell you how much gas and electricity you use. It can also be useful to compare your actual bills to the original quote you received from your supplier whenever you first signed with them. A key question to ask is did you use more or less energy over the contract term than was estimated on the quote?

The other things your current contract and recent bills will tell you is the rate you are on, when you are permitted to renew, and the terms of cancellation (in particular, how much notice you have to give your existing supplier/s).

Researching Business Energy Suppliers

The next step is to investigate the offers available in the market. You’ll be able to do some of this online, particularly if you use one of the price comparison tools that are available. However, to get the best results you must make some phone calls.

You should also remember that price comparison tools don’t always feature the best deals available for your particular circumstances. Some suppliers choose not to be part of the comparison services, for example. This means you should also approach energy suppliers directly, particularly energy suppliers that specialise in business and/or hotel gas and electricity supply. Also, make sure you get quotes from smaller suppliers as well as the big brands – smaller suppliers often have better deals.

The other thing you should remember is to haggle. This is not like researching suppliers for your house – regulations do not allow for haggling in the domestic energy supply market. For your hotel, however, suppliers can deal so you should haggle.

Contract Length

Apart from price, one of the main considerations you have as a hotel is contract length. Some hoteliers prefer to have the option of changing their supplier regularly in order to get the best possible deals. This approach is not without its risks, however, as prices can go up as well as down.

For this reason, many hoteliers choose longer term contracts to fix the cost of their energy supply for longer. You can’t control all the costs in your hotel in this way, so many take the opportunity to do so when it is available to them.

Which option you choose depends on the needs of your business.

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