1. An opportunity to save money
Obviously, comparing business electricity prices means you can make an informed choice and select the business electricity provider that offers the lowest rate if you’re looking to save money. That’s something most businesses have as their priority; and there are few justifications for paying more than you need to for power because paying a higher rate won’t give you ‘better’ electricity per se. Of course, you may have other considerations, such as choosing a supplier who offers ‘green’ energy and/ or better customer service than your previous provider. But even taking those factors into account, comparing rates across the market will mean you get the best deal possible for your requirements.
Whenever you’re nearing the end of your contract with your existing supplier, moving into new premises or starting a new business, you should take advantage of the opportunity to cut down your business electricity expenses. You want to avoid getting locked into a bad deal that will only cost you more money over the long term.
2. The option to switch plan type
Key information you need to know when you compare business electricity prices is the two main types of payment plans available for business electricity.
First, there’s the fixed payment plan under which your business electricity is charged at the same rate throughout the duration of your contract, irrespective of any changes in electricity prices on the global market.
Then, there’s the variable payment plan, with rates subject to change based on the current price of electricity globally. There are many factors that can affect the price of electricity worldwide, including weather conditions, geopolitics, and the price of raw materials used for generating electricity.
A variable electricity payment plan can be volatile, especially at the moment, and can drastically decrease, or more likely increase, your business electricity costs. With a fixed payment plan, on the other hand, you’ll know exactly what price you’ll be paying per unit of electricity for the duration of your contract.
Both of these payment plans have their own advantages and disadvantages, although the variable payment plan seems to be more of a gamble at present as prices rise. In any case, be sure to compare business electricity suppliers to see what their base rates are and the types of plans they offer before making your final decision.
3. Eco-friendly options
Did you know that some business electricity providers are more environmentally friendly than others? Switching your business electricity supplier gives you the opportunity to switch to providers that are making more of an effort to reduce their carbon footprint if this is one of your priorities.
This will especially help if you are struggling to comply with UK government regulations on emissions or if you are simply trying to demonstrate internally and externally that you’re as ‘green’ as you can be. Comparing business electricity providers will tell you which are using more renewable energy sources and which are less focused on that.
Did you know that over 1.2 million businesses in the UK are paying more for their business electricity than they should? It’s estimated that these businesses are losing around £500 million in total every year because of this. If you haven’t switched your business electricity provider for a while, you might be giving away money that would be better ploughed back into your company.
If you suspect you’re overpaying for your business electricity and are looking for a switch, let us help here at Compare Business Electricity. Our team will find you the best deal possible for your business. We will do the brunt of the work, comparing business electricity rates across the UK, saving you time and effort and ensuring you can make the best decision for your company.
Here at Compare Business Electricity, we provide our customers with detailed quotes and forecasts of prices under the plans of leading business electricity suppliers in the UK, so you can choose the one that will offer the most value for money for your business. We can also help you reduce your other utility bills for gas and water too. For more information on the services we provide, see elsewhere on this website.
Save on your business electricity expense by working with us now! Call us on 01274081070 to talk with our business electricity specialists, or fill out the form on our ‘Contact’ page found at https://comparebusinesselectricity.uk/contact/. You can also send any written queries to hello@comparebusinesselectricity.com.
FREQUENTLY ASKED QUESTIONS
What business uses the most electricity?
Grocery stores, restaurants, and convenience shops are three of the most energy-consuming small businesses. These use power to keep food cold, run appliances, and heat and light their premises, for example. There’s typically a lot of potentially wasted energy as well. In terms of industry, manufacturing is the biggest power consumer, followed by mining, construction and agriculture.
How much power does a small business use?
Small enterprises use on average 8,000 – 10,000 kilowatt-hours (kWh) of electricity each year. The majority of energy consumption is for lighting, heating, and cooling systems. The average business electricity prices per kWh are 14p for small and medium-sized businesses, with most small businesses paying £1,500 on average each year.
How does business energy work?
Business energy encompasses the gas and electricity which is used by businesses. It works similarly to residential utility services, although business energy costs are frequently less than residential because it’s sold and used in bulk. Contracts for business energy usage are generally longer than residential ones and can last up to five years.
What influences the price of electricity?
Several factors can affect electricity prices. These include poor weather (which equates to increased demand), regulatory pressures, crude oil prices, flow, availability, and wind generation. When you compare corporate energy rates in the United Kingdom, consider whether a fixed-rate contract will protect you from these fluctuations.
When to compare business electricity in the UK?
We at Compare Business Electricity recommend conducting a corporate energy rate comparison in the United Kingdom right before your current contract ends. The ideal time to start looking for new electricity suppliers is around six months before the end date of the contract.
How long does it take to switch business electricity contracts?
Typically, business electricity switches will take about six weeks to complete. It is possible to compare business electricity rates and get a new deal as soon as your switching window opens. With that being said, the switch itself will not take effect unless your current contract expires.
What are the best business electricity deals currently available?
Business electricity prices are always changing, and the only way to guarantee the best bang for your buck is to conduct regular price comparisons. It’s also wise to sign up for a better deal as soon as the switching window opens. This is so you can secure lower rates and beat any potential spikes in energy prices.
Step-By-Step Guide for Switching Energy Suppliers
Before you switch, you should conduct a UK-based commercial energy cost comparison across the market first. Then, here’s the step-by-step guide to switching energy suppliers.
- Check for any fees involved in cancelling your old energy contract. If you switch early, you may face exit charges with fixed-rate plans.
- You’ll need the following information to change energy suppliers: your postcode, your current electricity supplier, and the name of your tariff. This can be found on your most recent bill or by contacting your provider.
- You’ll also need to know how much, on average, you spend or use in kilowatt-hours - kWh. This data can be found on your most recent bill or on the annual energy statement provided by your supplier.
- If you don’t have a recent bill because you’re a new business, for instance, you can still compare and switch energy plans based on expected energy consumption.
- The new energy company will handle the transition. You’ll need to provide meter readings as requested and pay any past due invoices to your old firm.
The whole process takes between two and six weeks.
All You Need to Know About Business Energy Bills
What charges are included in business energy bills?
The two major components of your energy bill are the unit cost (the amount you pay for each kWh used) and the standing charge.
However, there are additional expenses that add to the overall cost. The following are examples:
Business energy wholesale costs
The wholesale price is a supplier’s amount to acquire energy in bulk before reselling it to consumers. Although the wholesale cost isn’t visible on your bill, it contributes to your unit rate.
Transmission Use of System charges (TNUoS)
The costs of maintaining and upgrading the National Grid are included in this charge. It is usually part of the standing charge.
Paying for Distribution Use of System (DUoS)
The Distribution Network Operators (DNO) are regulated by Ofgem and supply the electricity in your region. The cost of the DUoS will vary based on your contract type, meter type, location, and time of use.
Value Added Tax (VAT)
VAT is charged at a rate of 20% on gas and electricity for businesses, which will be automatically included in your energy bill.
Tips to Help Your Business Save Big on Electricity Costs
Saving money on your company’s power bills by making small changes to the way you operate can be a smart financial move. It can also help employees become more aware of their usage. Here are some helpful hints for saving money on your company’s electric expenses.
Get Smarter About Usage
Simple techniques, like turning off lights when they are not in use, are easy to put into practice but can make a big difference.
Alternative Power
This is one of several ways to reduce energy use, and it’s also beneficial to the environment. Designing buildings to incorporate as much natural light as possible can cut down on energy consumption. Solar panels can contribute positively too.
Reduce Peak Demand
“Peak demand” simply refers to the hours during which electricity usage is at its highest—running major equipment and machinery during non-peak hours like late at night and early in the morning can help you save money on energy expenses.
If you want to switch to an affordable business energy supplier, why not work with Compare Business Electricity? Our energy specialists will help you compare business electricity prices in the UK across the entire market, so you can choose the best and most suitable contract for your business.
