Frequently Asked Questions
The energy industry can be overwhelming and complex. Our business energy faq’s are here to help you better understand the market.
Can’t see the answer to your question? Contact our team on 0800 989 0141 or book a consultation using the button below for expert advice from our in-house energy brokers.
Businesses exploring energy for the first time are taken back by the extreme market conditions that are commonplace in this complex market. Trying to make sense of all the various elements is a complicated, time consuming process that can cause a great level of frustration. Tackling the energy market without professional help can prove to be a costly decision for any organisation. Having an energy specialist is recommended for any organisation unfamiliar with the inner workings of the energy market. Knowledge and timing are essential to successfully navigating this complex market. BP Consulting has all the specialists and professionals on-hand at all times in to deliver and support all of your energy needs.
You can either contact your current supplier, or you can estimate your consumption by using the consumption shown on your last bill. Alternatively, we can find out this information using a Letter of Authority.
A Letter of Authority, or ‘LOA’ as you may hear from time to time, gives brokers like ourselves the permission to obtain meter & supply data from your current supplier(s). Our LOA covers electricity and gas, if you have both! Essentially, it is you giving consent to your current supplier(s) to provide us with the necessary information needed to tender your utilities supply. It can also be quite useful when you’re strapped for time or just struggle to find a copy of a recent bill!
For many energy suppliers, you can agree a business energy contract anything between 3 and 5 years ahead of today. However, the majority of suppliers offer a renewal window of 12 months prior to your current contract end date. What we find is that most businesses only review the contract renewal 4-6 months ahead of their current contract end date, but that doesn’t mean you need to follow that trend! Some businesses contract for their energy more than a year in advance and others leave it until the last minute. There are advantages and disadvantages to any approach, but we will always provide you with comprehensive recommendations, with your businesses best interests in mind. Something to remember is that you can arrange a contract today to follow on from your current contract and it will not take effect until your existing contract has ended. This means you cannot just jump to another business energy contract until your current contract has ended.
As standard in the industry, business energy suppliers do not operate a policy of cooling off periods when agreeing contracts with their customers. This is because suppliers forecast and buy the energy they supply to businesses based on the business’ unique characteristics. If they were to offer a cooling off period, the argument goes that they would need to price the potential risk of non-recovery into the contract and as a result levy higher charge.
Make sure you check the tariffs available from us and compare them to your renewal offer. 99% of the time, our tariffs will be far more competitive than your renewal offer and will save you a significant amount!
In simple terms, we identify better tariffs for our customers because we match the needs of the customers to energy suppliers who wish to supply them. We then negotiate with the supplier on your behalf until we agree on a tariff that you’re happy with. Essentially, we get you the deal your business deserves, and the supplier can get the business customers it wants.
As part of the service, we liaise directly with your old supplier to inform them of the switch, so that’s one less job you need to think about!
When you switch suppliers, you may find you end up with two active Direct Debits on your account, that is until your old supplier closes your account. However, the good thing is you’ll never have to pay for the energy you use twice, with any overpayments always refunded to you. To prevent this, you could look to cancel your old suppliers direct debit, but you need to think about the impact this cancellation may have on your business, as any closing debits or credits will need to be paid using an alternative method, such as a cheque.
Deemed rates usually apply to businesses that are either; new to the property, have terminated a contract but failed to switch to a new supplier or they have missed the contract end date and are now out of contract. These rates are extremely expensive and arguably the worst rates to be on…however, the good news is that there is only a maximum of 28 days’ notice required to switch onto cheaper electricity rates.
VAT is normally charged at 20% on business energy. However, in certain circumstances, a business energy customer can qualify to pay a reduced rate of VAT.
Some of the circumstances this applies for include:
•Energy for charity non-business qualifying use
•Energy where the amount supplied does not exceed the domestic qualifying use de minimis limits.
•Energy with at least 60% being eligible for qualifying use
If you’re unsure if you qualify, feel free to give one of our experts a call, so you can better understand how you make your declaration.
At BP consulting, we understand that compliance with energy regulations and standards can be a complex and challenging process for businesses. We are here to help. Our team of expert consultants has extensive knowledge of the latest energy regulations and standards, and we can help your business navigate the compliance process with ease. We can also provide guidance on energy-efficient technologies and best practices to help your business reduce energy consumption and improve sustainability. Our goal is to help your business stay compliant with regulations and achieve its energy efficiency goals. Contact us today to learn more about how we can help your business meet its energy compliance needs.
Energy consulting can be highly beneficial for public sector businesses in a number of ways. Firstly, an energy consultant can help identify opportunities for cost savings by identifying areas where a business can reduce energy consumption, as well as identifying available rebates, grants, and incentives. Secondly, we can help public sector businesses develop and implement sustainable energy strategies that support a more sustainable future. Thirdly, we can advise on the latest energy-efficient technologies and best practices, which can optimise operations and improve performance. Fourthly, we can ensure that businesses are in compliance with regulations and avoid potential fines or penalties.