Small businesses have unique utility responsibilities. Use these tips to help avoid unexpected utility costs when moving into a new space or expanding existing operations.
Before moving in
Understand the property and location of the small business
Determine what kind of business used the space previously. If the current energy needs are lower than the previous tenant’s, the site’s electricity service may be oversized and result in higher costs. If the energy needs grow, it is important to make sure the new location’s energy service can support this growth. Look at the electrical panel size and ensure it can support the business needs.
Figure out the rate class assigned by the utility distributor; this will determine the rate for the site. For example, commercial operations like professional offices, retail establishments, institutional facilities, and restaurants may use small general service or small commercial rates. Auto mechanic shops, dry cleaners, and cabinet makers may use medium or large commercial rates. Each rate class may be further subdivided into different categories based on the amount of power the consumer uses. To find out the rate class, ask the leasing agent or call the distribution company.
Understand what type of meter is used at the property as this can determine the rates charged by the retailer. If there is a demand meter, the utility bill will be higher because of demand charges.
Determine the distributor for the area. While consumers can choose their retailer, they cannot choose their distributor. The distributor determines the delivery charges in the area and if the business will be subject to demand charges.
Learn what utilities, if any, are included in the lease agreement and if proof of set-up is required.
Compare electricity and natural gas options
Check out the retail options available using the Cost Comparison Tool. For consumers with existing services, they may be able to switch locations by calling their retailer.
If new services are required, the default retailer in the area can set up services immediately or even backdate if required. Competitive retailers can take 10-90 days to set up services in your name. If the competitive retailer cannot set up services by the date the consumer needs, they can set up services with the default retailer until the competitive contract becomes active. Consumers can cancel default services without penalty at any time.
Prepare for additional fees such as a deposit or connection fee to set up utilities. When setting up services, consumers can ask if they need to pay these fees before services starts or if they will be charged on the first bill. Consumers can ask their retailer if it is possible to avoid these fees. Some companies will waive deposits for consumers that set up pre-authorized payments
After moving in
Pay utility bills
Make sure to pay the utility bills. Consumers can check with their retailer about how they will receive their first bill. Some retailers use paper billing, while others are completely electronic. It’s a good idea to confirm when bills will be received and what the billing cycle will be. The account holder is responsible for all charges, even if they do not receive a bill. If consumers do not pay their bills, services may be disconnected.
If consumers are moving and responsible for two sites at the same time – even for a short period – they should tell their retailer that there will be an overlap in billing.
