Reduce start-up energy costs
As more and more energy companies announce big increases in your bills,
LaunchLab.co.uk and Electricity4Business have compiled a simple checklist to
help start-up businesses save money in the months ahead.
Are you starting a business and
locating to new premises? Even if the property your new business moves into is
empty
doesn't mean the electricity has been disconnected. And that means
someone has to pay for it.
When you first move in, business
electricity is supplied on what is known as a "deemed contract"
inherited from the current electricity supplier. This deemed rate can be up to three times more than what you should
be paying with a standard business electricity contract.
When you move into a new office,
you want to plug your computers and equipment into the mains and get straight
to work. This is understandable, but there are a few things that you should
take care of regarding your electricity supply to avoid problems in the future:
- Agree a cut-off date and
meter reading with your landlord or estate agent
- Take a meter reading upon
entering the premises
- Find out who the
electricity supplier is
- Shop around to make sure
you are getting the best deal
Reading the meter
Your business electricity bill is calculated according to your electricity
consumption, which is measured in kilowatt hours (kWh).
This is recorded by an
electricity meter, a small device usually hidden in a cupboard somewhere on the
property or located with other meters in a communal area of the building.
Normally, the meter is only read
when the electricity supplier makes periodic visits to calculate your bill, so
you should make a reading yourself when you move into a new office to ensure
you do not get billed for electricity consumed by the previous occupant.
Agreeing a cut-off point
Even though the old tenants or owners have moved out - and sometimes left
unpaid bills and failed to notify the supplier - the meter will still be
running.
When you sign the lease or buy
the property, make sure the contract includes a provision for utility bills,
including the meter reading at the time of the handover. This will ensure you
are not liable to pay for electricity you did not use.
Find out who your electricity supplier is
The previous occupant of the
premises will have had a contract with a business electricity supplier. This
company will automatically continue to supply electricity until you sign a
contract with someone else.
As no formal contract exists,
this electricity is supplied under the terms of a "deemed contract",
billed at a premium rate. Don't wait until you receive the first bill to
discover who your electricity supplier is - and how much they are charging.
Take steps to switch electricity suppliers
When you move into a new office,
you will need to sign a contract as soon as possible to prevent having to pay
the inflated cost of a deemed contract.
In order to find the best deal
for business electricity it is really important to shop around and be aware of
what is on offer and switch supplier so you get the best deal.
