Make the Comparison and Make the Choice: The Best of Electricity Is Right There

What applies to private consumption is also becoming common practice for B2B customers, more and more companies are looking for their commercial electricity provider solely on the basis of the cheapest price. Commercial electricity that appears cheaper at first glance can, however, prove to be an expensive solution in the long term, because there are also “black sheep” among commercial electricity providers. Therefore, it is important to carefully examine a cheap offer. Otherwise, switching to so-called “cheap electricity providers” can entail a great risk. But how can reputable electricity providers be distinguished from dubious electricity providers? What must be taken into account when switching electricity providers and what are the risks for customers who choose cheap Business Electricity providers?

Black Sheep On The Energy Market: What Is Cheap Commercial Electricity?

Dubious electricity providers have become more and more common on the energy market in recent years. These often rely on an unsustainable, questionable business model: With ostensibly cheap commercial electricity and the announcement of high bonus payments or premiums, they appear particularly attractive to new customers and encourage them to switch providers. Often the bonus cannot be paid out afterwards and there are massive increases in electricity prices after the minimum contract period has expired.

With low tariffs, many, especially dubious electricity providers, were able to benefit from the falling electricity prices in recent years. For about two years now, however, the prices for commercial electricity in electricity purchases have been rising again, which means that discount providers who only rely on cheap commercial electricity offers can no longer keep their promises.

What Are The Risks For The Customer?

If cheap tariffs are offered with high bonus promises, while the electricity prices in purchasing for the commercial electricity provider rise at the same time, dubious electricity providers often react with short-term, massive price increases.

Be careful with prepayment and package rates

Dubious electricity providers often rely on tariffs with prepayments that enable very cheap offers. The fee for the electricity supply is usually paid for one year in advance. The customer runs the risk that, in the event of bankruptcy, the prepaid costs cannot be reimbursed. So-called package tariffs, which charge a certain amount of commercial electricity at a fixed monthly price, suggest cheap electricity for businesses. However, they are only cheap if the previously estimated amount of electricity is actually used. Kilowatt hours that go beyond the package purchased can also raise the price significantly.

Research Is Worthwhile: Which Electricity Providers Are Recommended?

Before switching, find out in advance on the Internet: Who is behind the commercial electricity provider? How big is the provider and how long has the company been around? Who is the managing director and what did he do beforehand? Dubious electricity providers often advertise attractive bonuses that are not paid out or only paid out after a delay. Promised bonus payments should usually only be paid out one year after the conclusion of the contract shortly before the end of the year, however, the customer is terminated for flimsy reasons. The calculation behind it: The conditions for the payment of the bonus are therefore not met. As a result, the originally supposedly cheap commercial electricity can become very expensive. Reputable electricity providers are characterized, for example, by the fact that they guarantee good customer advice and offer a price guarantee over the entire contract period.