As a micro business owner, there is a good chance that you may be experiencing some tight margins, so overpaying on anything, such as stock, staff wages, utility bills, and equipment, can be enough to affect the smooth operation of your business. Thankfully, you can choose a business energy contract that fits your needs.
Switching energy suppliers through Utility Bidder is an effective and simple way to instantly reduce your overheads. Micro-business owners also have to switch energy tariffs than other types of business owners. This article is a guide to help you switch to micro-business energy tariff.
Understanding a micro-business
If you are unsure whether or not you are operating a micro-business, then you need to note that there are usually two definitions associated with it. The first one relates to energy usage. To be eligible for a micro-business tariff, your business needs to use less than 293,000 kWh of gas per year and less than 100,000kWh of electricity per year.
The European Commission also defines a micro business as one that has less than ten employees. The business also needs to have a balance sheet or turnover total of two million Euros.
If you operate your business from home, then it’s likely the domestic energy deal you have is meeting the needs of your business. But it’s still a good idea to consider a business energy deal because micro business energy prices are sometimes cheap compared to the domestic rates.
Ideally, to qualify for a micro business energy tariff, you have to prove that you own and operate a business from home. Besides, you also need to prove that you are utilizing a significant portion of the electricity and gas to run your business.
Remember that your business may be utilizing energy for heating, lighting, and electricity to keep it operating. This is usually enough to qualify for a micro business energy tariff.
When you decide to calculate how much energy your business uses, you need to deduct any devices that can be on regardless of your micro business being there. These appliances include freezers, fridges, washing machines, and ovens.
Micro business energy contracts
Micro businesses can decide to switch to a new energy contract at any time. This is unlike SMEs that can only make the switch to a new contract until the current one reaches its switching period.
If you have a fixed term contract, your electricity and gas suppliers need to be transparent about the expiry of your contract. This helps you to know the exact time you have to switch the energy supplier so that they don’t roll you into an expensive energy deal.
On the other hand, if you have a standard energy deal, then your energy supplier needs to get in touch with you once the switching window opens. At this point, the energy supplier may choose to give you a renewal energy deal. However, the renewal rates provided by the current energy supplier can sometimes not be the most affordable on the market. This is the reason why you must compare rates before accepting a new energy deal.