Business Energy and the Kind Of Selections That Matter

For a very long time, the incumbent suppliers of EDF for electricity and for gas had a virtual monopoly on the energy market, which they shared with 162 ELDs. Individuals could not take out an energy contract with another supplier. As you Compare business energy and choose the best one, you can expect the best there.

2007 however marked the opening up to competition of the electricity and natural gas markets. Since then, individuals can freely change energy supplier. In fact, they can subscribe:

  • A regulated offer
  • A market offer.

The Regulated Price Offer

The regulated tariffs (TRV) electricity and gas are set by the government. The incumbent suppliers and the ELDs are the only ones authorized to offer them to their customers.

The Regulated Electricity Tariff

The regulated electricity tariff is set by the public authorities, on a proposal from the Energy Regulation Commission (CRE). As soon as CRE formulates an upward or downward proposal, the government has three months to approve it. In fact, the price of a kWh of electricity can be revised up to twice a year.

The Regulated Tariff for Natural Gas

The regulated tariff for natural gas is also set by the public authorities. It is revised monthly. This means that each month the price of a kWh of natural gas can go up as well as down.

Offers at Market Prices

Since the opening up of the energy market to competition, around thirty alternative suppliers have emerged. If they cannot market an offer at the regulated price, they offer their customers offers at market price. Note that suppliers are authorized to market offers at market price. Under the terms of the market offers, the energy suppliers set their own tariffs. In fact, they offer offers at fixed or indexed prices:

  • Offer at an indexed price: the price per kWh is lower than the TRV, but is indexed to it. Thus, if the regulated tariff per kWh increases by 4%, the price of kWh sold by the supplier also increases by 4%.
  • Fixed price offer: the price per kWh remains stable for a given period, regardless of fluctuations in the regulated sales tariff.

Why Change The Energy Supply?

Changing the energy supply often results in significant savings on electricity and natural gas bills. But that’s not all. Here are all the reasons that may prompt you to review your electricity or natural gas offer.

Your electricity and gas offers no longer correspond to your needs. Does the electricity or gas offer you subscribed to a few years ago still perfectly meet your needs? Will your household’s consumption habits change? When the number of spinning machines for washing clothes increases, it may be wise to schedule washes at night in order to benefit from an Off-peak rate.

Thus, if you have recently carried out expansion work in your home or if you have purchased particularly energy-hungry electrical appliances, it might be useful to check that your electricity and natural gas contracts are still adapted to the consumption profile of your business.

Other Providers Offer More Competitive Rates

Your consumption habits have not changed? Changing your electricity or natural gas supplier can still save you money. If you have remained loyal to your historical energy supplier, know that alternative suppliers offer particularly advantageous offers.