| e 1990s, the energy industry was deregulated | | | | 2. Your current contract status – ie if you are |
| allowing domestic and business customers to choose | | | | in a contract and, if so, when it expires. |
| their preferred energy supplier. Business energy is | | | | 3. Your Supply Number – commonly called an |
| sold in one, two or three year contracts, domestic | | | | ‘MPAN’ for electricity contracts or an |
| energy is not. Nearly two million small business | | | | ‘MPR’ for Gas. |
| customers (SMEs) now have the freedom to choose | | | | The supply number identifies a customer’s |
| their energy supplier. Business owners can now | | | | supply details and is required to allow a customer to |
| choose from any supplier in the UK. | | | | transfer their electricity supply from one supplier to |
| Switching suppliers does not mean laying new cables | | | | another. The supply number can be found on |
| or digging up the street. Electricity and gas will be | | | | previous bill and shows a unique meter reference |
| delivered to the customer’s premises in the | | | | number (10 digit 'MPR' for business gas or a 21 digit |
| same way as it does now. If a customer has a | | | | 'MPAN' will start with an 'S' for business electricity) |
| problem with their meter, cables or other equipment, | | | | which is needed to confirm consumption. It also |
| they can call the emergency number provided by | | | | explains what kind of meter you have, which supply |
| their new supplier and the level of service received | | | | area you are in and what kind of electricity/gas user |
| for emergencies will not be affected. The only | | | | you are. It ensures that any quote you receive has |
| change to the customer is that the new supplier will | | | | the correct energy prices. |
| now invoice the customer (at a cheaper rate). | | | | BUSINESS ENERGY PRICING MODELS |
| THE ‘BIG 6’ ENERGY SUPPLIERS | | | | Energy (both gas and electricity) is measured in |
| So who can you choose from? The market is | | | | kilowatts and priced in kilowatt hours (kWh). Most |
| dominated by six major players. They are: | | | | business energy bills will also include a standing charge, |
| BRITISH GAS – Trading as Scottish Gas in | | | | climate change levy, VAT and when appropriate will |
| Scotland. Part of the Centrica Group. | | | | also include a capacity charge and/or reactive charge. |
| SCOTTISH POWER – Now owned by Spanish | | | | Climate change levy has been revised several times |
| Company, Iberdrola. Includes Manweb. | | | | since it was introduced in 2001 and currently stands |
| SCOTTISH & SOUTHERN ENERGY – | | | | at 0.47p/kWh for electricity and 0.164p/kWh for gas. |
| Includes Swalec/Southern Electric/Scottish Hydro | | | | VAT on business gas and electricity is charged at |
| Electric/Atlantic Gas & Electricity. | | | | 15% |
| EON – German owned. Includes Powergen | | | | Business are usually on Evergreen – or rollover |
| Economy Power/Norweb/Eastern Electricity/East | | | | -contracts, meaning that unless the business serves |
| Midlands Electricity/Independent Energy. | | | | notice to leave the supplier, they will be automatically |
| NPOWER – Includes Midlands electricity | | | | rolled over year on year to increased rates. Unlike |
| Yorkshire Electricity/Northern Electric. | | | | gas, where all units used are charged at the same |
| EDF – Electricite de France, French state | | | | rate regardless of when they are used, electricity can |
| owned company. Includes SWEB/Seeboard/London | | | | often be charged at different rates depending on the |
| Electricity. | | | | time of day, time of week or month of the year. |
| And then that are some other, smaller, suppliers that | | | | The role of a broker is to find the best price that |
| you will hear about from time to time: | | | | helps cut costs for each business customer and |
| OPUS – Smaller supplier based in Northampton. | | | | makes it easy for them to switch supplier. A broker |
| CORONA ENERGY – London based gas supply | | | | should always offer this service for free because it |
| company. | | | | will receive a commission from the supplier for |
| CONTRACT NATURAL GAS (CNG) – Small | | | | introducing new customers. The best price is based |
| Harrogate-based gas company. | | | | on cutting the cost off the customer’s latest |
| Plus the likes of: ELF, Gazprom, Shell, Total and | | | | contract renewal price from their current supplier, |
| Haven. | | | | rather than the price from an old contract several |
| WHAT INFORMATION DO YOU NEED TO SEARCH | | | | years ago. Deals will change day to day dependent |
| FOR A COMPETITIVE QUOTE? | | | | on suppliers and what they are paying for wholesale |
| There are three basic pieces of information supplier, | | | | energy. Make It Cheaper, for example, not only |
| brokers or price comparison services will need to | | | | searches the whole of the supplier market to give |
| know in order to give you a quote. These are: | | | | the customer the best possible price available that |
| 1. Who your current supplier is an estimate of your | | | | day but some suppliers will provide it |
| annual consumption - you can usually find information | | | | ‘special’ cut price rates which are |
| related to consumption on a current bill. | | | | then passed onto customers. |