You may not have even thought about it before, but business energy really is a unique market which has lots of differences to domestic energy. Many people are used to being around domestic energy, we use it in our homes on a daily basis, whilst business energy is a foreign topic for most people. We’ve laid out the key differences between domestic and business energy below.
Those who do know the business energy market may be wondering how it compares to domestic energy, and if business energy can be changed and switched just like domestic.
Below are some of the key differences in both the markets and switching processes of domestic and business energy.
Differences between the domestic and business energy markets
There’s a few general differences between domestic and business energy. Of course they are used for different purposes – domestic energy is for your home whilst business energy is for corporate buildings.
- The business energy market is also highly volatile compared to domestic energy. Business energy suppliers buy their energy from the wholesale market. With wholesale energy costs changing as fast as every half an hour, the price of business energy is never stable. This means that purchasing your business energy contract one day could be a different price to the next day, even though the needs of your business have stayed the same. This doesn’t affect domestic energy as demand for domestic energy is much more uniform and predictable.
- Whilst domestic tariffs are usually variable with some 1, 2 and 3 years fixes, business energy tariffs tend to be up to 5 year fixes.
- Domestic energy also tends to be more expensive than business energy as it is generalised across all households, whereas businesses have much higher usage volumes and contracts are fitted around each individual business.
- There is no cooling off period in business energy contracts, so once a business is in a fixed term contract they do not have the option to leave.
How business energy is different: switching energy suppliers and tariffs
When it comes to switching, there’s surprisingly few differences between domestic energy and business energy.
The only real difference is that domestic energy can be switched at any point throughout the contract, whilst business energy can only be switched at the end of the contract.
You can switch your supplier for either very easily and it’s much less hassle than you might think. You’ll need a few things to hand, like a recent bill (click here for a list of things you may need to switch business energy).
Our business energy experts make the process super quick and easy and will do all the hard work for you.
CLICK HERE to compare and save on business energy or call 0800 008 7772