Your energy supplier buys the gas and electricity it supplies to your business on the wholesale market. In the last few years the wholesale price of gas and, to a slightly lesser extent, electricity has risen dramatically. Small businesses have seen the prices they pay for gas and electricity rise in line with these wholesale price rises, as their suppliers adjust their tariffs to take account of the changing circumstances.

For many small businesses, price will be the number one factor that leads them to choose one energy supplier over another. But, unlike the situation for households, small businesses have no price comparision websites or other services to help them find out quickly and easily which supplier is the cheapest in their part of the country. This is one of the reasons many small businesses use energy brokers or other third party intermediaries.

If you are looking for a new supplier there are a number of key questions to ask connected to the price you will pay:

How often can the supplier change its prices?
Most short-term contracts which last no more than a year will be on a fixed price. At the end of the contract, your supplier will almost certainly offer a new price and you can sign up again or move to another supplier if you prefer.

However, if you sign a contract for longer than a year it is likely that the supplier will be able to change the price you pay. Check how often this can happen and the notice the supplier has to give you of any increase. Once a year is most common, but it may be more often.

How is any price increase calculated?
Sometimes suppliers will offer a price that changes in line with the wholesale price of gas and electricity. If it does, the likelihood is that other suppliers will be doing the same thing, as they are all subject to the same pressures. But if the supplier can raise prices as it wishes, think very hard before committing to a lengthy contract.

What does the quoted price include?
Check whether the price quoted is inclusive of all charges and costs or whether there are any other costs that you will be billed for.

Can you get out of the contract?
You should also check also if you can cancel the contract without penalty if the price goes up – if not, then you may be unable to take advantage of better offers.