Business Electricity for Start-ups

The Electricity4Business essential checklist for start-ups

Just because the property your new business moves into is empty doesn't mean the electricity has been disconnected. And that means someone has to pay for it. When you first move in, business electricity is supplied on what is known as a "deemed contract" inherited from the current electricity supplier. This deemed rate can be up to three times more than what you should be paying with a standard business electricity contract.

When you move into a new office, you want to plug your computers and equipment into the mains and get straight to work. This is understandable, but there are a few things that you should take care of regarding your electricity supply to avoid problems in the future:

• Agree a cut-off date and meter reading with your landlord or estate agent
• Take a meter reading upon entering the premises
• Find out who the electricity supplier is
• Take steps to switch suppliers

Reading the meter

Your business electricity bill is calculated according to your electricity consumption, which is measured in kilowatt hours (kWh). This is recorded by an electricity meter, a small device usually hidden in a cupboard somewhere on the property or located with other meters in a communal area of the building. Normally, the meter is only read when the electricity supplier makes periodic visits to calculate your bill, so you should make a reading yourself when you move into a new office to ensure you do not get billed for electricity consumed by the previous occupant.

Agreeing a cut-off point

Even though the old tenants or owners have moved out - and sometimes left unpaid bills and failed to notify the supplier - the meter will still be running. When you sign the lease or buy the property, make sure the contract includes a provision for utility bills, including the meter reading at the time of the handover. This will ensure you are not liable to pay for electricity you did not use.

Find out who your electricity supplier is

The previous occupant of the premises will have had a contract with a business electricity supplier. This company will automatically continue to supply electricity until you sign a contract with someone else. As no formal contract exists, this electricity is supplied under the terms of a "deemed contract", billed at a premium rate. Don't wait until you receive the first bill to discover who your electricity supplier is - and how much they are charging - simply give us a call.

Take steps to switch electricity suppliers

When you move into a new office, you will need to sign a contract as soon as possible to prevent having to pay the inflated cost of a deemed contract. It is pretty much common knowledge that the best deals and highest standards of service for business electricity are not always offered by the big six electricity suppliers, but as you are reading this site, the chances are you are already in the right place.

Further Reading Resources:

• Switch Business Electricity Supplier
• Reasons to Switch Electricity Supplier
• Main E4B News Area