Commercially using natural gas as an economical fuel has a lot of perks. It saves you the hefty costs of installing and upgrading electric transformers, and maintenance of the equipment is more affordable. Unlike liquid fuel that people have to store in bulky storage tanks, companies directly deliver gas through pipelines. Besides, the business energy markets are competitive, which gives you the liberty to choose among several suppliers. You can compare their facilities and rates using Utility Bidder to find the most suitable suppliers.
Although all businesses value saving costs, the cheapest is not the best in all scenarios. Signing a contract with unsuitable suppliers can cost you an arm and a leg over the next few years. To minimize this likelihood, there are three crucial things you should factor in before making the final decision.
Consider the Rates
The first and foremost step would be comparing the charges of different suppliers. What each company bills for per kWh will determine the costs you will have to bear. You should also consider assessing the quotes in the context of the market prices for gas at large. Sometimes, the rates are specific to geographical zones, in which case it is necessary to consult with the company directly.
Business owners naturally avoid signing a contract with suppliers charging unreasonably, but extraordinarily low rates can also be a red flag. It could signal unethical tactics behind the doors, such as exploitative labor or predatory pricing, both of which are illegal.
Learn the Sustainability of Tariffs
Based on the nature and duration of tariffs, you can utilize three types of plans for business gas. Unless you already have a preference, it would be wise to research the pros and cons of each, following the unique needs of your business. Here is a general layout of the three plans.
- Fixed Plan
If you subscribe to a fixed plan, your energy suppliers will be legally obliged to charge the same for each gas unit. This predictability may be a blessing for small businesses that need to plan out the costs of everything beforehand. However, if the market prices fall, you may find it unfair to pay the same amount.
- Variable Plan
A variable plan, as the name suggests, changes dynamically. Suppliers tailor their commercial gas rates to wholesale prices in the industry. Hence, they fluctuate together.
- Flexible Plan
Also known as a rollover plan, the rates, in this case, also evolve. The difference is that they are not in tune with the market prices, and the suppliers set them. For instance, a company may devise a plan to charge less for the first two years and more for the next three because your business is expecting revenue growth in the later period.
Authenticate the Credibility of the Suppliers
It is essential to consider their credit ratings and financial statements to ensure you are entering a business relationship with credible dealers. You can also approach this comparatively, such as assessing whether your top picks have received any official recognition or awards for their gas supply. Reading the customer reviews will also help you screen out the suppliers with a dissatisfied clientele and inadequate customer support.