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A Practical Decision Framework for Irish Businesses
For many Irish businesses, energy contracts are “set and forget” - until a renewal notice arrives or a bill suddenly spikes.
The reality is that many businesses are:
- Unknowingly rolling onto expensive out-of-contract rates
- Renewing without properly testing the market
- Operating with incorrectly structured accounts
- Missing opportunities for stronger multi-site pricing
At SK Advisory, we regularly review business electricity and gas accounts where unnecessary costs have built up quietly over time.
The good news?
A proper energy review does not need to be complicated.
Here’s a practical framework to help determine whether your business should switch supplier, renegotiate with your current supplier, or restructure its energy setup entirely.
1. When Did Your Fixed-Term Contract End?
This is the most important starting point.
Once a business energy contract ends, many businesses automatically move onto:
- Rollover rates
- Deemed rates
- Variable rates
- Out-of-contract pricing
These rates are often significantly more expensive than negotiated market pricing.
A surprising number of businesses:
- Don’t realise their contract expired
- Don’t know their renewal date
- Assume their supplier automatically provides the best available pricing
In reality, that is rarely the case.
Ask yourself:
- Do you know your contract end date?
- Did you actively negotiate your last renewal?
- Was the wider market properly tested?
If the answer is unclear, it is probably time for a review.
2. Did You - Or Your Broker - Actually Go to Market?
This is something many businesses do not realise.
In some cases, businesses assume their energy broker carried out a full market comparison when, in reality, the contract was simply renewed with the incumbent supplier.
That does not necessarily mean the outcome is poor - sometimes negotiating with the existing supplier can actually provide the best commercial result.
Other times, switching supplier delivers significantly better savings.
The important thing is understanding:
- Whether the market was genuinely tested
- Whether multiple suppliers were explored
- Whether your supplier sharpened pricing competitively
- Whether a switch or negotiated renewal delivers the better outcome overall
At SK Advisory, we assess:
- Switch pricing versus renewal pricing
- Standing charges
- Contract structure
- Usage profile
- Market timing
- Operational suitability
because the cheapest headline unit rate does not always equal the best commercial outcome.
3. What kWh Usage Band Is Your Business In?
Energy pricing in Ireland is heavily influenced by annual consumption.
Your business may fall into very different pricing structures depending on whether you consume:
- 20,000 kWh annually
- 100,000 kWh annually
- 500,000+ kWh annually
Even businesses in the same sector can receive very different pricing depending on:
- Usage profile
- Peak demand
- Load pattern
- Annual consumption band
Understanding your actual usage profile ensures your pricing is benchmarked correctly against the market.
4. Is Your MIC Correctly Sized?
MIC (Maximum Import Capacity) is one of the most overlooked parts of Irish business electricity billing.
If your MIC is too high, your business may be paying unnecessary network-related charges.
If it is too low, you can face excess capacity charges or operational issues during peak demand periods.
Many businesses inherit incorrect MIC settings from previous tenants or fail to reassess capacity after operational changes, expansions or equipment upgrades.
A proper energy review should assess whether your MIC still reflects how the business actually operates today.
5. Are You on an Out-of-Contract or Rollover Rate?
This is where some of the largest overspending occurs.
Businesses often end up on expensive out-of-contract pricing because:
· Renewal notices were missed
· Tenancy changes occurred
· Supplier communication went to outdated contacts
· Contracts simply expired without action
These rates are rarely competitive.
Warning signs:
- Sudden unexplained increases in bills
- Unusually high unit rates
- No active contract paperwork
- References to rollover, default or out-of-contract pricing
If you are unsure, it is worth having the account reviewed professionally.
6. Are You a Multi-Site Business Owner?
If your business operates across multiple locations, there may be opportunities to leverage group pricing structures.
This is something many businesses fail to explore.
Depending on the supplier and overall usage profile, multi-site arrangements can sometimes provide:
- Stronger unit pricing
- Improved negotiating leverage
- Simplified account management
- Aligned renewal structures
This can be particularly valuable for:
- Restaurant groups
- Pharmacies
- Retail chains
- Franchise businesses
- Hospitality operators
Group purchasing structures are often more competitive than treating every site individually.
7. What Is the Market Doing This Quarter?
Timing matters.
Irish business energy pricing moves constantly based on:
- Wholesale market conditions
- Geopolitical events
- Seasonal demand
- Weather patterns
- Broader european energy trends
That does not mean businesses should attempt to “trade” the market - but renewal timing can materially impact pricing outcomes.
Sometimes:
- Locking in early makes sense
- A shorter-term structure is preferable
- Delaying slightly may improve pricing
- Flexibility becomes more valuable than the lowest headline rate
Understanding market conditions before renewing is critical.
The Reality: Most Businesses Never Properly Review Their Energy Costs
Energy is often treated as a fixed overhead rather than a controllable business cost.
But inefficiencies across:
- Unit pricing
- Standing charges
- Mic
- Renewal timing
- Contract structure
- Multi-site arrangements
can quietly add up over time.
Even businesses that switched recently may still benefit from an independent review.
How SK Advisory Helps
We help Irish businesses:
- Track renewal dates
- Compare supplier pricing
- Assess switch versus renewal options
- Identify deemed or rollover pricing
- Review MIC suitability
- Explore multi-site pricing opportunities
- Negotiate supplier arrangements
- Simplify the switching/renewal process
Most importantly, we help businesses understand what they are actually paying for - and whether it still makes commercial sense.
Request a No-Cost Energy Review
Not sure whether your business is on the right contract or rate?
SK Advisory offers a no-cost business energy review for Irish businesses.
We’ll review your current setup, assess supplier pricing, and identify whether there may be opportunities to reduce unnecessary energy costs - with no obligation to switch.
