Why your business should research its next energy contract

Businesses spend a large amount of money on power bills due to high electricity prices, but changing your energy contract could see you make savings in this area.

Between 2011-12, businesses in Australia spent around $20.2 billion on electricity overall and $6.3 billion on gas prices, according to the Australian Bureau of Statistics.

Taking simple steps to increase  efficiency and Comparing Business Energy Suppliers could help you see a reduction in these expenses.

Here are some top reasons why you should research your next energy contract thoroughly before signing on.

Improve your budget

You may be able to find a plan where you can save money with a variable rate. However, this rate might be subject to change. That means while it could be cheaper now, savings will not necessarily follow through for the rest of the year.

A fixed rate, on the other hand, means you can plan accordingly in your annual budget. The rate is locked in for the year so there won't be any changes.

This may not be the cheapest option, particularly if the variable rate dips throughout the year, but some businesses opt for the security of knowing their bills will be much the same month by month.

Make the most of the competition

Government energy policies throughout Australia now promote competition in the market between providers, so it's easier to find a better deal and make savings.

Shop around and compare business energy suppliers to find the most suitable option for the needs of your company.

Your business may be changing

If your business has grown, it could be a good time to consider switching suppliers as you may find you can get a better deal.

Similarly if your business has made changes to improve efficiency, you might find these could translate to bigger savings if you switch to a different energy plan.

A new supplier will be able to incorporate those developments into your energy plan.

You want to become more efficient

Plans already set in motion to help your business become more sustainable and efficient may help you see a reduction in your electricity and gas prices.

If you are in the process of making these adjustments, you might be able to change the plan you are on to reduce your expenditure.

Switching from incandescent bulbs to led lights in the office and ensuring workers turn off computers at the end of the day are small changes that can go a long way in reducing the amount your business spends on energy.

Posted by Richard West.