How to set up commercial utilities

To get your business premises up and running, you must arrange contracts for essential utilities like electricity, gas, water, and broadband. This process can take several weeks, so it's crucial to start as soon as you have a signed lease. Your first step is to find out who currently supplies the property and take meter readings the moment you get the keys.

Electricity and Gas

Business energy contracts work differently from domestic ones, so it’s important to get this right to avoid overpaying.

1. Find the current supplier: Your landlord or the previous tenant should be able to tell you who supplies the energy. If not, you can find out who your gas transporter is via the Find My Supplier service and your electricity network operator via the Energy Network Association. They can then tell you the supplier.
2. Avoid “Deemed” Rates: When you first move in, you’ll be placed on an expensive ‘out-of-contract’ or ‘deemed’ rate by the existing supplier. You should arrange a new contract immediately to switch to a cheaper tariff.
3. Compare and Switch: Use a reputable business energy comparison service to find the best deal. Pay attention to the unit rate (price per kWh), the daily standing charge, and the contract length. Business contracts are often for a fixed term of 1-3 years and have high exit fees.

Water

In England and Scotland, the water market for non-household customers is deregulated, meaning you can choose your water retailer. This gives you the power to find a better deal on billing and customer service.

• Identify the retailer: Find out which company currently bills the property for water and wastewater services.
• Compare retailers: While you can’t change your wholesale provider (the company that manages the pipes in your region), you can switch the retailer who manages your account and bills you. Look for one that offers better rates or services tailored to businesses, like consolidated billing for multiple sites.

Business Broadband

A reliable internet connection is vital for almost every business. While it might be tempting to use a residential package, a business contract offers important advantages.

• Key Benefits: Business broadband typically comes with better reliability, priority customer support, faster fix times (known as a Service Level Agreement or SLA), and often a ‘static IP address’, which is essential for hosting a server or running some security cameras.
• Plan Ahead: Getting a new line installed can take several weeks, especially if it requires engineering work. Arrange your broadband contract as soon as you have a confirmed move-in date to ensure you’re connected from day one.

Top Tips for a Smooth Setup

Take Meter Readings: On the day you get access to the property, take a clear, time-stamped photo of every utility meter. Send these readings to the current suppliers to ensure you don’t pay for the previous occupant's usage. This is the most important step to avoid future disputes.

Read the Fine Print: Business utility contracts are legally binding and less flexible than domestic ones. Check the contract length, notice period, and exit fees before signing anything.

Budget for Deposits: As a new business without a credit history, you may be asked to pay a security deposit. Make sure you factor this into your startup budget.