You’ve expanded your workforce and your client list. You’ve outgrown your current business premises and are now ready to move to a better location to drive your company forward. Over 9,000 SMEs like yours have relocated to a new business premises in 2018. Over 75% of them have reduced their running costs by 20% just by getting a better energy deal. Find out how to be one of them.
Your Move Deal: Stay Away From Deemed Rates!
Moving to a new business premises is an exciting and positive step. However, relocation costs can spiral out of control. Getting a new energy provider is paramount to keeping a healthy budget. If you don’t sign a new energy contract when you move in, you’ll be paying “deemed rates” for the gas and electricity that your company uses. They can be over double the cost of what you could be paying at “acquisition rates”. A new electricity connection and gas supply is the simplest way to pay less to run your business.
Why are Deemed Rates So High?
When you move into a new business premises, whoever supplied the previous occupier may still be supplying energy to the property. While they knew the previous occupier, they don’t know you! You’re regarded as a financial risk as they don’t know how much energy your business will be consuming. To cover their risk, they’ll charge you the more expensive deemed rates instead of acquisition rates. Just take a look at the whopping difference between the two in the table below:
|Energy Type||Typical standing charge per day||Typical unit rate per kWh|
|Deemed rates||New customer rates||Deemed rates||Acquisition rates|
Want to know how much you could potentially save at your new premises?
STEP 1: Understand exactly what the Unit Rate and Standing Charge are how to lower them. Get help with your energy bills to tackle the jargon.
STEP 2: Find out the average business energy bills and energy usage of a typical company in your sector and of the same size.
STEP 3: Find out if your projected usage in your new premises is at a level that permits you to avoid or reduce the Climate Change Levy.
STEP 4: Use the table above the plug in the figures of the standing charge and unit rate for the amount of energy your company will be using. Do this at the Deemed Rates. Do it again for Acquisition Rates. Subtract the former from the latter and you get the amount of money you could be saving per year!
STEP 5: See the top business energy suppliers in the UK and which one gives you the tools to track and manage your energy consumption.
Debunking Common Myths
There are many myths floating around about energy supplies when relocating to a new business premises. Let’s debunk them right now.
I Can Take My Energy Deal With Me To My New Premises...Right?
Wrong. It’s more likely that you’ll have to arrange a new deal. Your supply contract takes various factors into consideration when quoting you a unit rate and standing charge. These include things like the location, meter size and projected energy consumption at your new business property. Your energy contract will stop from the date you move out. It will not be transferred to the new address.
I Could Stay with My Current Energy Supplier When I Move?
This isn’t such a good idea if you had suspected that you were paying too much for your business energy supply. Look at your best options. Your current supplier will tempt you to stay with them and not change supplier on the basis that you’ll be “minimising the impact on your business.” This is false.
Firstly they can’t simply “transfer” your existing contract to your new premises as if nothing had changed. Secondly, there won’t be any impact on your business when you switch supplier if it’s done by professionals.
When Can I Switch Energy Supplier Without Penalty?
It’s unlikely you’ll be charged an “Exit Fee” when you leave the supplier of your old premises. An Exit Fee is what a supplier may charge for exiting a contract before an agreed term. This will be stated in your energy contract, so look at it carefully. Exit fees have been very unpopular with customers like you, so many suppliers have scrapped them. If in doubt, check your contract or contact the supplier you’ll be leaving.
My Old Supplier Doesn't Need to Know about the Relocation?
Wrong. You’ll need to send your energy supplier a Change of Tenancy form (CoT). Send it to them at least one month before your move-out date. The Change of Tenancy form details the important information your previous supplier needs to know before you leave them.
These include your MPAN & MPRN numbers, your move-out date and final meter readings. They’ll process this letter and cancel your current contract so that it ends on your move-out date. We’ve created a template for you. Just fill it out and email it to your old supplier. Download it here.
TOP TIP: It’s tempting to cancel your direct debit with your old energy supplier. Don’t do this, otherwise you will get a final bill for the energy used up until the date you move out, perhaps with a late penalty fee. You might even be due a refund if you overpaid on any bills previous to the move out date.
Relocation Obstacles To Dodge
Avoid the 6 most common pitfalls that could cost your business money when relocating to a new premises.
1. There’s already an existing connection up and running in the new premises
If this is the case, don’t be tempted to use the supply without signing a new energy contract. As mentioned above, you’ll be paying Deemed Rates and will, therefore, end up paying more than you should do for energy.
2. The supply might have been disconnected
When you move into your new premises, you might find that the supply has been disconnected. This is probably due to the previous tenant not paying their bills or cancelling their contract. In this case, you may have to pay a reconnection fee or an additional deposit to get it reinstated.
3. The connection was never set up
If it’s a new build you’re moving into, then you’ll be levied with a connection charge. Be aware that it can take a while to get connected. If you’re moving into a new build, then it’s wise to compare market prices and choose a provider ahead of time.
4. Cold calls from energy suppliers
Expect to receive annoying cold calls shortly after you move into your new business premises. Energy suppliers will have caught on that the business premises is currently out of contract. Be wary of offering too much information about your business over the phone. They’ll be eager to sign you up for one of their energy deals, often exaggerating their savings. To avoid falling into their trap, see this our guide (coming soon!)You'll want to go through an independent cost comparison website such as Selectra to get the most accurate information and the best deal for your company.
5. Maximising energy efficiency at the new premises
There may be energy efficiency options available at your new location. Contact your landlord or the building’s owner and ask for an Energy Performance Certificate. It provides information on the building’s energy, as well as what you can do to improve its efficiency. There are many steps you can take to improve energy efficiency depending on your line of business. These steps range from measures to avoid paying the Climate Change Levy to reduce energy consumption in your business.
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6. Compare business energy deals
Moving business premises is the prime time to see which energy deals are on offer and switch to a better supplier. See the best business energy suppliers here. You can compare the unit rate and the standing charge as well as the service you’ll receive.
There’s no need to contact each supplier individually to request bespoke quotes and negotiate for the best deal. It’s time-consuming and your time is better spent doing what you do best...managing your business! Selectra’s team of energy experts will do all the legwork for you, for free and without any obligation.
You’ll be given the most competitive rates from across the market. Once you’ve decided the best deal that suits your business, they’ll set it up with your old and new suppliers to ensure there’s no disruption to your supply.
Your commercial relocation should be prepared early to keep business disruption down to a minimum. Follow Selectra’s checklist of logistical issues to plan for to achieve a stress free corporate relocation.
1. Draw up a detailed timetable.
Note down the dates for the main stages of the move. These could include the following:
- The date the removal contractor will load the equipment from your old premises and transport it to the new one.
- The date you expect to have telecoms and other infrastructure set up at the new premises.
- The date your business will need a gas and electricity supply to be up and running.
- The date you and your employees will be moving.
Plan for any delays and obstacles that may arise. It’s best to leave the move-in date itself flexible and dependant on the completion of the other stages of the move-out.
2. Storage services.
Will you need warehousing or some other space to store your corporate belongings before or during the move? If so, get quotes from a storage company that’s close to either your old or new premises. The closer they are from your old or new business premises, the less fuel costs you’ll incur in the move process.
3. Mark up your new floor plan.
Print off a large A3 detailed floor plan of your new business premises. Ensure the measurements of the floor space are clearly marked. Get the measurements of the company equipment that will be moved to the new place. Grab a pencil and sketch where they would or could be placed. If the new premises is big, assign colour codes to each department. For example: Accounts = blue, Marketing = green, Legal = orange, etc.
Then allocate colour coded stickers to each department section on the floor plan. At your new office space, print out colour coded signs to make it easy for the delivery men to see how the departments have been demarcated. That way they’ll know where to put the equipment when they arrive. Label the desks with numbers and ensure they are marked on your floor plan.
4. Moving services.
Which moving company will you use to transport all your business equipment to the new premises? Will you be using local movers or a contractor that’s located further away? Get a moving quote from each moving company and compare them. What will they include in the cost...a moving truck, packing and unpacking services?
Once you’ve got the most competitive quote from the best moving company, book it for the planned move-out date. Send a detailed floor plan to your movers with the colour codes you created in the previous step. Don’t forget to book extra parking space that they may need for the moving day.
5. Draw out a budget.
Think of any moving expenses that your business will incur during the relocation. These may include the following:
- The cost of any disruption to sales or other business activity.
- The cost of removal and transport contractors.
- The cost of storage if needed.
- The cost of recruiting more staff or of making redundancies if applicable.
6. Tell your employees about the move.
It’s a legal obligation to consult all of your staff about the change of business property. If you don’t, you’ll risk being in breach of their employment contracts and could be liable for a breach of employment law. You may or may not need their consent, depending on whether there’s a mobility claus in their contracts, so check this out.
If the new business premises is so far away that it would be unreasonable to expect your employees to relocate, you will normally have to offer them a redundancy package. For any questions, consult an employment lawyer.
7. Notify your clients and suppliers.
It’s important you tell your customers and suppliers well in advance before the move. If you don’t you could risk losing business. Follow these steps to keep everyone informed:
A. Send them a letter of change of address
Explain to all your customers and suppliers the reasons for the change of address. Include a map and exact address. It's best to use a link via Google Maps so people know where to find you and how to get directions.
B. Make the change in your marketing material
If you have lots of promotional material containing the old business address, don’t just throw them away. Order stickers with the new address and stick them over wherever the old one appears. Moving forward, ensure your new marketing material contains your new address.
C. Look through your files for other organisations and people to contact
You may also need to inform others of the change of business address. This could include your bank, HMRC, insurers or other authorities. Anyone who you’ve had regular contact with in the past few years should be updated of the change.
D. Website, email signatures, social media and Google My Business
You’ll be surprised about the multiple places your company address can appear in the online world. That’s why you need to change it in the most important platforms where your company will be seen. Ensure you change the address in the following places:
- Website. Get your IT department or webmaster to update the new address on each page of your website where the old one appears. If you use Wordpress for either your website or your blog, find out here how to edit your contact information.
- Social Media. Moving into a new and improved business premises is something to shout about. Tell everyone about it in a post. Also remember to update the address in each section that details your company. See here to find out how to edit your business address in Facebook.
- Email signatures. Send an email to every employee and get them to update the new address in their email signature will clear instructions on how to do this. Alternatively you could delegate this task to one person who could do this for everyone. If your company uses Gmail, follow these steps to edit an email signature.
- Google My Business. The world at large knows where you find you thanks to your company being listed on Google My Business. Ensure they won’t be contacting you at the old address, but rather the new one by updating your account. Find out here how to edit your business listing on Google.
Congratulations! You’ve made it through a business relocation and all your employees are ecstatic about the new change. Why not throw a moving-in office party to get everybody settled in? You also deserve a big pat on the back for making the move a success. Now that you’ll be paying less for your gas and electricity than you did at your previous premises, inject that money into your company. Watch your turnover grow and get the financial security you’ve dreamed of.