Why comparing the market could save your business thousands
When it comes to renewing a business energy contract, many businesses assume the cheapest option is to go directly to the supplier.
It is an understandable assumption. After all, if you are buying directly from the supplier, surely you are cutting out the middleman?
Not necessarily.
In our recent guide, 10 Business Energy Myths That Could Be Costing You Money, one of the common misconceptions we covered was that going direct is always cheaper.
It is something we hear regularly, so we thought we would take a closer look at this particular myth and share a genuine example from a recent business electricity comparison.
The Real Comparison
We recently obtained a business electricity quote for a medium-sized business using just over 40,000 kWh of electricity per year.
After identifying the most competitive option available, we decided to carry out a simple comparison. We visited the supplier’s own website and generated a direct online quote for exactly the same electricity meter, using the same contract length.
The results surprised even us.
| Quote Details |
WeSave Quote |
Supplier Direct Quote |
| Unit rate |
24.8p/kWh |
30.9p/kWh |
| Standing charge |
The same |
The same |
| Estimated annual cost |
£10,063.93 |
£12,518.60 |
| Difference |
Going direct would have cost approximately £2,500 more per year,
making it 24.39% more expensive.
|
Both quotes had exactly the same standing charge. The difference came entirely from the unit rate.
Through WeSave, we secured a unit rate of 24.8p/kWh, compared with 30.9p/kWh through the supplier’s own direct online quotation.
Based on the client’s estimated annual consumption, our quote came to £10,063.93 per year, compared with £12,518.60 by going direct.
That’s a difference of approximately £2,500 per year, with the supplier’s direct online quote being 24.39% more expensive.
Importantly, our rates of 24.8p/kWh already included our commission.
Our Data Says…
Based on the direct supplier renewal quotes we’ve been shown by clients
so far this year:
87%
of the time we’ve been able to secure a cheaper alternative.
That’s exactly why we always recommend comparing the wider market before
signing a renewal.
This is just one genuine comparison, and every business is different. Prices vary depending on annual consumption, meter type, contract start date, market conditions and the supplier involved.
However, it clearly demonstrates something many businesses don’t realise:
Going directly to your supplier doesn’t automatically mean you’re getting the best available price.
The only way to know whether your renewal offer is genuinely competitive is to compare it against the wider market before you sign.
Does This Mean Going Direct Is Always More Expensive?
No.
This is one genuine comparison, and business energy prices vary depending on the supplier, annual consumption, meter type, contract length, contract start date and market conditions at the time the quote is produced.
However, it clearly demonstrates something many businesses do not realise:
Going directly to a supplier does not automatically mean you are receiving the lowest available price.
Why Can Business Energy Prices Differ?
Energy suppliers do not always offer identical prices through every route to market.
A price available through a supplier’s website may be different from the prices available through other channels. Some businesses may also qualify for bespoke or negotiated pricing that is not necessarily reflected through a standard online quotation journey.
The size and type of the business, its annual consumption, usage profile and contract start date can all affect the prices available.
Business energy prices can also move regularly as wholesale market conditions and supplier pricing strategies change.
This means there is not always one universal price available for each business.
The Biggest Mistake Businesses Make
One of the biggest mistakes businesses can make is obtaining a quote from just one supplier and assuming it must be the best available deal.
Sometimes it will be.
Sometimes it will not.
Without comparing the wider market, there is no reliable way of knowing.
A direct renewal offer may appear convenient, particularly when it comes from the business’s existing supplier. However, convenience does not necessarily mean value.
Taking the time to compare the available options before signing could save a business hundreds or even thousands of pounds over the duration of its next contract.
It Is Not About Avoiding Suppliers
This is not about suggesting that businesses should never approach energy suppliers directly.
If a supplier’s direct quotation is genuinely the most competitive option available, then that may be the right contract for the business.
The important message is much simpler:
Do not assume. Compare.
A wider comparison may confirm that the direct offer is competitive, or it may uncover a significantly cheaper alternative.
Either way, the business can make its decision with greater confidence.
Look Beyond the Unit Rate
Although the unit rate was responsible for the difference in our recent example, businesses should not compare contracts using the unit rate alone.
The standing charge, contract length and estimated total annual cost should also be considered.
For businesses with multiple rates, half-hourly meters or additional pass-through charges, the comparison can become more complex.
The cheapest-looking unit rate does not always produce the lowest overall bill, which is why we recommend comparing the complete estimated annual cost of each option.
Read Our Business Energy Myths Guide
This article takes a closer look at just one of the misconceptions included in our recent guide:
10 Business Energy Myths That Could Be Costing You Money
The guide covers ten common myths surrounding business energy prices, contracts and renewals, helping businesses make more informed decisions before signing their next agreement.
Already Received a Renewal Quote?
If you’ve already received a renewal quote from your current supplier, don’t assume it’s the best available deal.
As this real-life comparison demonstrates, taking just a few minutes to compare your options could potentially save your business hundreds – or even thousands – of pounds over the life of your next contract.
Before you sign, let us compare your renewal quote against the wider market.
We’ll tell you honestly whether we can improve on it. If we can, we’ll show you exactly how much you could save. If we can’t, we’ll tell you that too.
👉 Ready to compare your renewal quote?
Visit our Beat My Renewal Quote page to get started:
It only takes a couple of minutes, and there is absolutely no obligation to proceed.