The amount of electricity providers is daunting when scouting for the best suited for you or a better deal. It makes you wonder what you should be looking for in an energy provider. It isn’t very hard to find a better electricity provider and we are here to provide you with some tips on how you can do that.
1. Rates And Tariffs
Which rate and contract term is better for you depends on your energy consumption. You can analyse your electricity consumption by looking at your bills or by asking your electricity provider for a free energy audit. If you’re looking at business electricity prices across providers, many of which can also provide you with an initial free consultation on your electrical bill. This will show you where you are spending more of your electricity. There are two main types of electricity plans:
- Fixed-rate plans. They ensure you get the same rate throughout the duration of your contract. They are highly valuable when you get long term contracts. Usually contract length varies from 6-, 12-, 24-, 36- to 48-month plans.
- Variable-rate plans. The price per unit varied because of seasonal reasons such as summer or go by peak periods of the day.
A tariff is the way you are charged your electricity bills. Tariffs can be made up by one type or a combination of the following types:
- Single rate. You are charge the same the entire day
- Time of use. Take into account peak and shoulder period charging you less or more.
- Controlled load. You are charged electricity for a specific appliance such as an electric hot water system. This would be charged at a different rate than the rest of your electrical bill.
- Demand rate. It is based around the load you place on the electrical network measuring over 30 minute intervals. The highest demand recorded is used for the entire month.
2. Use License Electricity Providers
This is very important. Your energy provider must be licensed. You also want to ensure that your business electricity provider serves in your area. Different areas and states will have different regulations and taxes. Making sure your energy provider is familiar with your area will ensure the best rates whilst still being compliant to all the different regulations.
Too often business owners see the dangling carrot of a dollar sign in front of them, and act before the proper due diligence. Rushing into a contract from an interstate provider when looking at business electricity prices can cause more of a headache (and more costs!) than it is worth.
3. Electricity source type
You can check what generation options each electricity broker provides and compare their rates for the different energy resources. You can also obtain your electricity from a combination of different sources. The main types of energy resources include:
- Renewable
- Solar
- Wind
- Hydraulic
- Geothermal
- Fossil
- Coal
- Petroleum
- Gass
If you are concerned about your carbon energy or want to meet business environmental impact goals, renewable energy can be a cheaper option. Greenpeace releases an annual report on the greenest energy that could be worth reading.
Renewable energy is increasing in capacity and how much is produced. With government efforts and initiatives to become more environmentally friendly renewable energy could become cheaper.
4. Electricity Provider’s reputation
In the case of electrical problems or a power outage, your business electricity provider is responsible for restoring your electricity. Observing their response rate and how effective they communicate will help you choose an energy provider that will give you less worry in the long term. Check the company’s reviews and reputation. Ask friends and family or research their history compared to other energy providers. Look for services they offer that might make your experience easier. For example, some companies will provide apps to track you electricity usage
There are many electrical companies to choose from. There are Victorian government website you can use to compare them such as:
- https://compare.energy.vic.gov.au/
- https://www.aer.gov.au/consumers/switching-retailers/comparison-tools
You can also hire an Electricity Broker that will have all of the expert knowledge and advice to get you the best deal. They are also familiar with all of the different electricity providers in your area.
Does all of this give you a headache?
Don’t worry at Compare Business Electricity, we are Australia’s leading energy experts able to provide double the savings. We work with Australia’s leading service providers to provide you with the best deals.
