Leading commercial energy price comparison experts, Love Energy Savings, are urging business owners who rent their premises to take greater control over their finances. Managing Director, Phil Foster believes that many renters could be paying over the odds for their gas and electricity because it isn’t crystal clear in the terms of their tenancy as to who supplies their energy.
His comments came shortly after a report from the British Chambers of Commerce and British Gas showed that 27% of business owners who rent a space feel they have no influence over energy-efficiency improvements in their building.
“With commercial property rents rising again, it’s crucial that businesses find ways to trim their outgoings,” Phil commented.
“Communication is key. Talk to your landlord, building manager and energy supplier at the earliest opportunity, and make sure you’re not getting a raw deal. Ask them if you can make energy-efficiency changes, and if they say no, find out why.”
It’s not just inefficient buildings that are causing businesses to lose money unnecessarily.
Many commercial tenants assume they will be on the cheapest energy tariff when they move into a property, but this is rarely the case. Suppliers will generally roll over the previous tenant’s contract and it’s highly unlikely that this will be the best deal.
Phil advised that business owners familiarise themselves with the terms of their tenancy agreement straight away.
“If the tenant is responsible for the meter they can dictate the supplier, however, in a serviced office environment the landlord agrees the contracts and recharges the cost to the tenants,” he continued.
“The landlord would be responsible for any unoccupied space and therefore it would be in everybody’s interest for them to obtain the best possible rates. As a rule, the agreed lease says who's doing what with energy.
“There is generally a sub clause that states the landlord will make the best effort to secure a fair deal for their tenant.”
To help businesses to save even more money, Love Energy Savings has put together a guide specifically for commercial renters. You can read it in full here.