Business Energy Contracts

Business Energy Contracts

Energy markets can be quite complex, which is why many people find themselves seeking out an expert who can explain them in layman’s terms, such as Business Energy Contracts (BECs). These are essentially contracts between an energy company and a customer, who will invest in a certain percentage of future energy production, or sales. Business Energy Contracts differ from residential energy contracts in that they have no provision for increasing or decreasing the output, but only set prices that are set for a defined amount of time.

 

The two main contracts

you’ve probably heard about most frequently are fixed-rate contracts and flexible-rate contracts. Fixed-rate business energy contracts basically mean that you’ll pay the same price [per kilowatt-hour] for the entire duration of the contract, no matter what the market does. Your electricity will always cost the same regardless of whether the market price is up or down.

 

Flexible-rate contracts

on the other hand allow you to increase or decrease your contribution on a monthly, quarterly, or yearly basis. This flexibility allows small businesses a greater level of control and allows them to keep costs down if they are on the hook for a large portion of their monthly electricity bill. Many businesses and homes use electricity for just heating water, cooking, and lighting. Businesses can increase these uses, and there are flexible options that allow them to also use power for both heating and lighting. If your new premises are near a building that already has electrical service, you can tie the line into your current meter to reduce your costs even more. There are so many ways to save money with these contracts, you’ll be shocked at how much money you can save.

 

To start working with your new suppliers

there are a few prerequisites that must be met. A valid business permit and your property owners’ or tenants’ permission must be obtained before construction can begin. You’ll need a copy of your utility bills, to find out what your payments are every month. Your supplier should be able to supply you with the contract, and the suppliers’ guidelines for making changes daily. The supplier should be able to answer any questions that you may have, and be willing to work closely with you to reach a mutually beneficial contract.

 

If you are deciding to install new premises

it’s not a bad idea to talk with your suppliers first. They can give you helpful suggestions for making your new facility efficient and cost-effective. Once you’ve decided to implement a business energy strategy, you’re ready to get your meter installed and start your negotiations with your new suppliers. Your meter is an integral part of the new installation process and getting it installed correctly is important.

 

To protect your interests

and those of your suppliers and clients, you will need to develop some Business Energy Contracts (also known as BTUs). These are standardized contracts that provide standard pricing for energy consumption from your various businesses. You may also need to provide incentives for installing high-efficiency appliances and updating old ones. Many suppliers offer their customers the ability to enter into long-term contracts, which can help them to secure future business by providing financial security.

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