If you are a pub owner, switching your business energy supplier could significantly reduce operating costs and improve profit. Energy is one of the largest expenses for a pub; it is important to find the right supplier and tariff to maintain profitability. This guide will walk you through the process, and show how using a comparison service like Switch Squid can make finding the best deal for your pub effortless.
Understanding When You Can Switch
Before starting the switch process, there are a few things to consider. The most important factor is to determine if you are eligible to change suppliers without incurring penalties.
You can usually switch your business energy supplier if:
- Your current contract has ended.
- You're within the renewal window (typically 1-6 months before your contract end date for businesses – check your contract).
- You're on a deemed tariff (a default tariff, often when you've taken over new premises).
- You're out of contract.
If the contract is still valid and outside the renewal window, you may have to face early termination fees. However, sometimes the savings from the switch outweigh these fees, so it is worth calculating and comparing the potential benefits.
Preparing for the Switch
Gather Essential Information
Before contacting potential suppliers, collect the following information:
- Your business's postcode
- Current supplier name and tariff details
- Contract end date
- Annual energy consumption (in kWh)
- MPAN (Meter Point Administration Number) for electricity
- MPRN (Meter Point Reference Number) for gas
- Recent energy bills
Having this information ready will ease the comparison and switching process, especially when using an online tool.
Check Your Credit Status
Before supplying energy, suppliers check the credit of new applicants. If your pub has long-term debts with your current supplier (check Citizens Advice for current thresholds and rules), they might object to the switch. Ensure that all accounts are settled before proceeding.
Finding the Best Deal for Your Pub
Pubs have unique energy requirements due to:
- Extended operating hours
- Refrigeration needs
- Kitchen equipment
- Heating and lighting for customer comfort
There are three main approaches to finding a new supplier:
1. Direct Contact with Suppliers
This approach allows you to get details directly and request quotes. This can save you commission fees, but it is a time-consuming process since you will need to contact multiple suppliers individually and manage the sales calls that follow.
2. Using Comparison Websites & Brokers
Comparison websites and energy brokers can save you significant time and effort. Services like Switch Squid specialise in helping businesses by comparing multiple suppliers at once, often accessing exclusive rates and providing expert support to find the perfect tariff without the hassle.
The Switching Process
Once you've found a suitable deal, perhaps through Switch Squid, the switching process is generally straightforward:
- Agree to a New Contract: Contact your chosen supplier or use your chosen comparison service/broker to arrange the switch. Provide the details gathered earlier and agree to the terms of the new contract.
- Cooling-Off Period: While domestic customers get a 14-day cooling-off period, this does not typically apply to business contracts. Be absolutely certain before you commit, as business energy contracts are usually binding.
- Supplier Communication: Your new supplier (or service like Switch Squid) will handle communication with your current supplier and arrange the transfer. You generally don’t need to contact your old supplier to tell them you're leaving.
- Switching Timeline: Switching periods can vary. While some switches can be quick (Ofgem aims for 5 working days for small businesses), it can sometimes take longer. Your new supplier or service should confirm the timeline.
Potential Obstacles and Solutions
Supplier Objections
Your current supplier might object to the switch for several reasons: Outstanding debt, being in-contract, incorrect termination notice, date confusion, or issues with multiple meters. If your supplier blocks the switch, they must formally inform you of the reason.
Resolving Disputes
If you encounter problems: Contact your new supplier/service first. If unresolved, follow official complaints procedures. You can escalate to the Energy Ombudsman (for small businesses) or contact Citizens Advice for guidance.
Smart Meters and Time-of-Use Tariffs
Time-of-use tariffs offer cheaper rates during off-peak hours and might be beneficial for pubs, often requiring a smart meter. Before switching, check if such tariffs could work with your existing meter and confirm the new supplier supports its functionality.
Tips Specifically for Pub Businesses
- Consider Seasonal Usage: Look for suppliers offering flexible contracts or those understanding hospitality needs.
- Explore Green Energy Options: Enhance your pub's image and potentially find competitive rates.
- Check for Industry-Specific Deals: Some suppliers offer tariffs designed for the hospitality sector.
Conclusion
The switching process doesn’t have to be complicated, and your pub can start saving money. With comparison tools like Switch Squid, you can easily navigate this process. We help you compare business energy deals, gather all the necessary information, and find the best option to match your needs, ensuring you won't be beaten on price by any other comparison site.
Remember, planning ahead is key. Start your search well before your current contract ends to lock in favorable rates.
Take control of your energy costs and improve the profitability of your pub. Let Switch Squid handle the switch so you can focus on what matters most: providing a great experience for your customers.
