Energy

Top tips when choosing a clean energy tariff

Choosing the right energy supplier for business isn’t easy. Many companies are overcharged with hidden fees or fail to understand their own energy data. Thankfully, there are a number of ways to ensure that you pick an energy tariff that works for you. In this article, we’ve gathered some top tips from two industry experts prior to delving deeper into this advice during a webinar this month.

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The last couple of years were tough for businesses.

Out of the dozens of issues, energy was perhaps the most difficult to address.  It wasn’t just energy-intensive businesses struggling to cope with soaring prices; every business renewing their contracts during this period faced price hikes, severely impacting their operational costs.

Why? The UK is at the mercy of the international energy wholesale markets and geo-political events. Additionally, the business energy market is not protected and regulated in the same way as the consumer market. This lack of regulation can be daunting for businesses, especially when transitioning from previously lower-priced contracts to new ones. Businesses may also face hidden costs and unsuitable contracts that do not align with their energy reduction plans. Therefore, choosing the right energy tariff supplier is imperative.

Why is choosing the right clean energy tariff so crucial?

There’s no doubt about it: we won’t achieve net zero without firm commitments to REGO-backed energy. It’s simple to implement and drastically reduces carbon footprints. However, many companies seeking to switch to clean energy struggle to find a supplier who aligns with their budget, offers high-quality back-office support and provides accurate data collection for their current usage.

We understand the difficulties of choosing the right supplier. That’s why we’ve gathered two industry experts, Ben Gray and James Hickling, to provide their valuable insights on the energy market and how to pick a supplier that fits you like a glove. Here are their three top tips.

Our expert’s top tips for choosing a clean energy tariff and provider

Make sure your supplier is offering high-quality REGO back energy tariffs.

Today we find “green” energy far more readily available than it once was, however, not all “green” tariffs are the same. In our upcoming webinar, our experts will give you some pointers on what to look for in terms of securing a clean energy contract that positively reflects your company’s environmental credentials.

Make sure the total cost of your contract and fees are transparent

Hidden fees can spring an unwanted surprise. It is essential to ensure suppliers, brokers and consultants are transparent about your clean energy contract and aren’t looking to charge hidden fees or commission. When comparing costs and contracts ask for the “fully delivered cost of your contract” including unit, rate, standing charge, distribution charges, environmental taxes and any commissions. Ultimately, ensuring transparency on fully delivered costs is a must to avoid any nasty surprises and compare offers on a like for like basis.

Make sure to consider these key points when negotiating a clean energy contract.

There are several elements to consider when choosing a renewable energy tariff for your business. It’s important to first understand your business needs to select a tariff that works for you in both the short and long term. Here are some key questions to consider:

  • Market Timing: When do you plan to go to market?
  • Contract Length: What length of contract are you willing to sign?
  • Emission Targets: How will this contract contribute to your emission reduction targets?
  • Volume Tolerance: Will your new contract penalise you for decreasing or increasing your consumption?

Addressing these questions will help you make an informed decision before selecting a renewable energy contract.

The road to net zero is a long one, and finding a supplier who can assist you in that journey, whether that be through transparency, honesty or the maintenance of a constructive business relationship, can be transformative. As ever with net zero, it’s all about the long-term strategy.

Attend our clean energy webinar to discover more top tips

That’s just the tip of the iceberg. We’re delighted to host a webinar on renewable energy with industry experts who will identify and dissect more of these vital issues to help you secure a clean energy contract that’s right for your business. We’ll also outline everything you need to know about the industry at large and expand on the tips sketched out above.

Thinking of joining us? Sign up for free here.

How to measure and reduce Scope 3 emissions

Wednesday 7th August 2024, 12:00pm - 1:00pm