Review your energy tariff and consider a ‘green’ supplier

Contents

1. Check if you can switch energy supplier
2. Find out if your energy supplier has a cheaper deal
3. Why a ‘green’ energy tariff may benefit your business
4. How to switch to a ‘green’ energy tariff
5. Find and compare energy tariffs
6. Prepare to switch supplier
7. Check your energy deal before you switch
8. Consider a Power Purchase Agreement (PPA)

Check if you can switch energy supplier

You’ll normally be able to switch to a new business energy supplier if:

1. You’re not tied in to your contract – it’s important to check when your current deal expires.
2. You’re on a tariff you didn’t choose to be on. For example, you’ll be on a ‘deemed’ or ‘default’ tariff if:

• you’ve taken over a new premises 
• your last contract ended without a renewal plan or planned switch

Your energy cost is often highest on a deemed tariff. You usually won’t need to pay a fee or give notice to switch. Check to see if your supplier allows switching to a cheaper plan and if a notice period is required.

3. The fixed term of your contract has ended.

Find out if your current supplier has a cheaper plan

Speak to your current provider about switching to a cheaper plan before considering a new supplier.

If you can switch, check:

• how long the new contract is for
• how much you’ll pay per unit of energy and if the price can change
• other energy suppliers to compare deals with your current supplier’s plan 

Check Citizens Advice to find what to do if you’re struggling to pay your energy bills if:

• you can’t switch
• your supplier won’t offer you a better deal

Contact the Citizens Advice consumer service if you think you should be able to switch but your supplier won’t let you.

 Why a ‘green’ energy tariff may benefit your business

We’re moving into a new era of clean homegrown power according to GOV.UK’s main report Clean Power 2030 Action Plan: A new era of clean electricity. Clean electricity will replace oil and gas in modern energy systems that:

• • are affordable
  • keep our supply secure
  • cut our emissions before it’s too late

As the UK government continues to push for greener policies, businesses on renewable tariffs will also be ahead of potential regulatory requirements. 

Consider switching to a ‘green tariff’ or ‘renewable tariff’ option for your business energy deal if:

• you want to reduce your business’s carbon emissions
• your buyers are seeking a greener supply chain
• you want to enhance your business’s reputation: investors, suppliers and customers increasingly favour businesses with strong environmental credentials

Getting a heat pump could be a clean, cost-effective choice for your business if you combine this with a green energy tariff that discounts the energy used to run it.

 How to switch to a ‘green’ energy tariff

Speak to your current supplier about switching onto one of their green tariffs before considering a new supplier.

Green tariffs usually come in one of two forms:

• the supplier claims that your energy comes from renewable electricity sources such as wind, solar or hydroelectric power: this means more of what you pay goes directly to renewable generation companies
• the supplier contributes towards the development of renewable energy projects on your behalf 

100% renewable electricity supplies are supported by Renewable Energy Guarantee of Origin (REGO) certificates. You can receive these certificates from your supplier annually to demonstrate that you’ve purchased electricity from renewable sources. 

​​Green tariffs can be no cheaper than standard deals and may be more expensive. However, some companies offer flexible ‘off-peak’ rates.

‘Off peak’ means you’ll pay lower costs for using energy when demand is lower. 

You can use these off-peak rates for:

• overnight electric car charging 
• running heat pumps

Find and compare energy tariffs

Compare your current energy supplier’s tariffs with other providers before agreeing a contract.

Do market research to compare which renewable tariff counts more in customers’ opinions if you are changing to a green tariff to showcase your commitment to buyers.

Look into:

• the overall ethics and ‘green-ness’ of the supplier
• the percentage renewable energy provided in the tariff and fuel mix
• suppliers’ investment in renewable projects
• carbon dioxide produced per kWh of power

Prepare to switch supplier

You’ll need some details about your current contract to switch energy supplier, including:

• your postcode
• name of current energy supplier or contract
• name of current tariff
• the terms of your current contract – including the end date, termination fees and conditions
• your standing charges and energy costs per unit – these are shown in kilowatt hours (kWh) on your bill
• the amount of energy you use each year

You usually need to phone energy suppliers to compare prices and contracts. If you choose to hire an energy broker, or Third Party Intermediary (TPI,) make sure you ask them what they charge for their services.  

Try to negotiate with suppliers and brokers by mentioning other quotes you’ve been offered. Negotiating may help you get a better deal. 

You can also:

• check OFGEM’s list of accredited price comparison websites to compare suppliers: most of the websites compare tariffs for business users
• Check OFGEM’s advice on hiring an energy broker
• find out from GOV.UK on TPIs and the potential risks of hidden commission and lack of information transparency
• hire a specialist energy consultant or broker to negotiate a better long-term rate
• use services like Trustpilot to get a sense of customer feedback and expectations

The Ofgem website provides further expert advice for businesses looking to switch their energy tariff or having difficulties switching.

Check your energy deal before you switch

Always ask energy suppliers to send you a written contract before you agree to anything.

Most business energy suppliers don’t offer a cooling-off period when you switch. 

Only switch when are clear about:

• how much you’ll pay per unit of energy and if the price can change 
• any extra costs, for example, maintenance charges
• how long the contract will last for
• if there’s a cancellation fee
• how much notice you’ll need to give to end the contract

 Consider a Power Purchase Agreement (PPA)

You could consider a Power Purchase Agreement (PPA) if your business has high energy usage. PPAs allow businesses to buy electricity directly from a renewable electricity producer, often on a long-term contract.

• cost stability which gives you fixed-term predictability for budgeting and supply
• lower rates as schemes can access government initiatives like the Smart Export Guarantee (SEG), which compensates renewable energy generators for electricity exported to the grid

However, green tariffs or on-site generation may be more practical options for SMEs due to the long-term commitments and energy volume required.

Related links 

To increase your energy efficiency and lower running costs, find out how to:

• cut energy costs and improve your business efficiency 
• measure how your building ‘performs’ in operation using smart meters and other energy management systems

Find out about reducing your energy bills in the long term as well as your reliance on the grid with:

• an air source heat pump
• solar panels
• a wind turbine