Switching electricity providers is possible now, but many businesses are hesitant because of some of the roadblocks that have been presented for other companies. Research is essential to understanding the plan and ensuring that you get good quality service from your provider. Here's what you need to know if you're considering switching:
1. Only Customers of Licensed Retailers Can Switch
Your choice of electricity companies are only limited by the number of retailers available. If you're in an area with only one provider, then you have no choice but to select that provider. Some retailers will only supply to business customers. This could be an advantage for business owners. If you do have a choice, you're considered a "contestable customer."
2. Must Meet Certain Criteria to Switch
To switch, you must use more than 50 MWh of electricity per year. You may also qualify if your distributor is not Western Power. You cannot combine the amount of electricity you are using at each property to make yourself eligible as a contestable customer. If you use less than 50 MWh per year or pay less than $12,600 per year, and you are already connected to Western Power's network, you will not be allowed to switch. Any non-contestable customer in the SWIS network will receive electricity from Synergy.
3. Find an Approved Provider
You must select a retailer that's been approved by the Economic Regulation Authority (ERA). The ERA website will list all of the retailers that have been approved to provide electricity to consumers. Contact these retailers when you decide which one is best for you. The new retailer will arrange the transfer on your behalf. Once you switch, your old retailer may not bill you for any electricity used.
4. Always Ensure That You're Getting the Best Rate Possible
You want to ensure that you get the best rate possible at all times when you switch electricity providers, therefore shopping around is crucial. When you find the best rate, follow the procedures to switch. Most companies will require that you enter into a contract for a specified period of time. Once that time lapses, you're welcome to find another provider.
Keep in mind that surveys have been conducted demonstrating the sentiment regarding this issue. When a group was surveyed, 413 had changed their power companies in the past three years, but only 52 percent were confident that they made the right choice. Comparing offers is not always easy, and there may be some hidden costs that you're unaware of until the bill comes.
Every bill may have off-peak offers and peak-usage offers. Some companies offer discounts for on-time payments and others do not. You must know how you'll be affected before you make a decision.
5. Be Aware of Unauthorised Switches
Five percent of people have been switched from one provider to another without authorization. For this reason, many people are sceptical of sales people when they knock on their doors and request a change. You must know at all times what the terms are and ensure that no person switches you without your permission.
6. Most People Switch When They Move
Most people don't consider switching providers until they move. If they move to another location, they have more or sometimes, fewer options available. While a move may force you to switch providers, you should always perform due diligence to ensure that you are getting the best deal possible.
7. Beware of Penalties
If you're renting your building or apartment, be sure that your rental agreement coincides with the length of your electricity contract. If you break the contract before the agreed upon time, you may have to pay exorbitant fees. If you want to avoid fees and problems, you should ensure that if you are renting for a year, your contract with the electricity company should not exceed one year.
Making the Switch Can Be Profitable
If you remove all of the caveats, switching can be profitable. You can save more money that can be re-invested into your business. This is desirable to most people in this situation. While there are some organisations available to help you, they are more focused on helping residential consumers. Find the organisations that are willing to help you and avoid those that may switch you without your knowledge. In general, do not sign anything until you read it fully because you may be switching your electricity service without knowing it. Switching can be a good practice if it's executed properly.
Author Bio: This article is written by Aidan Jenkins, Managing Director of Infinite Energy, business electricity provider to Perth and South West WA. Connect with Aidan on Google+ or LinkedIn.