The 5 most important steps business customers should take when choosing an energy supplier

Choosing an electricity merchant is an opportunity to take advantage of free market conditions and optimize electricity bills for your business. It is important that the decision is made on the basis of objective information about both the price and the stability and correctness of the selected electricity supplier.

The choice of electricity supplier must be tailored to your consumption profile. This must be done on the basis of tenders submitted and free bargaining or under the terms and procedure of the Public Procurement Act.

In Bulgaria, there are currently 38 dealers licensed by KEVR. The more competitors there are on the market, the stronger the desire of everyone to give better conditions for the supply of electricity. Here are five important steps to take when choosing an energy provider to avoid making mistakes:

Step 1

Carefully study the market and companies that offer electricity on the free market. Research the past and reputation of your chosen provider. It is important to focus on a stable company — check where your supplier is registered, who owns it and whether it has enough contributed capital. It is important to avoid signing a contract with unsecured companies with a dubious reputation, since in the event of a possible bankruptcy of your supplier, you will suffer serious financial losses. Such bad examples and practices have happened in the past.

Step 2

To start the process of transferring to a new electricity supplier, it is mandatory to make an inquiry and provide information about your consumption - at least one monthly invoice. In response, you should receive a personal consultation, an offer and an analysis of possible savings. Thus, you will be able to choose the conditions according to the specifics of your business that best suit your consumption profile. Every business is different and its needs are specific, so preparing an individual offer according to personal needs and consumption is mandatory.

Step 3

After receiving offers, carefully study all the conditions of the contract presented to you, paying special attention to the term of the contract and whether it guarantees delivery for the period by the merchant. It is important that the penalties in the contract are the same for both parties — this ensures that the trader cannot change terms and conditions unilaterally. Check if there are collateral requirements and fees, what is the method and term of payment. It is also important whether there is a sufficiently well-secured network of sales representatives who, in case of a problem, will be there for you. See if there are hidden clauses for additional payments related to the costs of balancing or participation in a standard balancing group — with secure providers, all such costs are included in the price and are not paid separately. Last but not least is the level of service — consider whether you can count on expert assistance from your dealer's team at all times.

Step 4

After you have signed a contract with your chosen supplier, under the most advantageous conditions for your business, you should provide a notarized power of attorney with a text approved by the CEFR in order to proceed to the procedure of transferring the supplies to your new partner. It is important to choose a partner who will take over the entire administrative burden of the free market and/or change of supplier procedure free of charge and will carry out all necessary administrative activities on your behalf. Reliable partners save your time so that you, in turn, can devote it to your customers.

Step 5

The procedure is started by the 10th of each month, that is, this is also the last term for concluding a contract. Example — if you enter into a contract for the supply of electricity to 3rd September, it from 1st OctoberYour delivery will be taken over by the new supplier. If you enter into a contract 15th September, you will have to wait until 1st Novemberbefore the change of your electricity provider takes effect.