Hello World! Welcome Friends! For any small business owner, it’s crucial to manage costs. Some of the costs that can easily affect your bottom line are the energy bills. You can easily reduce your electricity business bills so that you can make significant savings. For example, you can decide to adopt energy efficiency techniques, such as using LED bulbs and switching off the equipment that are not in use.
But if you have tried all the methods and you still receive high energy bills, then you need to compare business electricity prices. This can help you choose the right business energy tariff so that you can avoid overpaying for your gas and electricity. In this article, you will learn about small business electricity prices.
To find the best business energy deals that fit your company’s specific needs, it’s worth exploring platforms like Business Energy Comparison that can help streamline the process.
Small Business Electricity Prices
It’s important to know how energy suppliers calculate your business electricity bill. This can help you to find the right energy deal when making the switch. There are several factors an energy supplier considers when calculating your business electricity bill.
An energy supplier considers your business energy consumption. This refers to the amount of electricity your business uses during a specific period. There is also a unit rate which is a charge that you agree with your electricity supplier to pay per kilowatt-hour.
You should note that businesses usually pay different rates based on their geographical area. Therefore, the distribution network operator can place a different charge depending on the region where your business is located.
There is also a standing charge which is the fixed daily price that you agree with your energy supplier to pay for your business electricity usage. This covers the expenses incurred when transporting electricity and maintenance. A standing charge can also vary, but this depends on the energy supplier. The average standing charge that applies for small businesses is about 23p each day.
An electricity bill has a period of billing. A business can be billed monthly or quarterly, but this can depend on what you agree with the energy supplier. Also, a business electricity bill has VAT. Small businesses pay 20 percent VAT, but there can be some exceptions. Not-for-profits and charities pay 5 percent VAT. Some electricity suppliers also offer discounts to reward you for paying through direct debit.
That said, a micro business refers to a business that has a turnover of not more than £1.8 million or less than 10 employees. The rules that apply for a micro business energy contract tend to be different from a larger business. If you have a micro business, then your energy supplier needs to tell you when the energy contract is about to expire. In such cases, the energy supplier can send you a letter that has your current electricity prices, your new electricity prices after renewal, and your annual electricity consumption.
You can also use this information to compare business electricity rates. Remember that there is a good chance that you can save a lot of money annually by switching electricity suppliers.
Small Business Electricity Tariffs
Before you decide to compare small business electricity prices, you have to consider your business energy usage. It’s important to get the right electricity tariff so that you can maximize your savings. There are several types of electricity tariffs for small businesses available on the market.
There is a fixed rate tariff for small businesses. When you decide to get a fixed rate tariff, the unit rate remains the same during the length of the electricity contract. This can be good for a business that wants certainty from its energy prices. You should remember that the monthly electricity bill can still fluctuate, but this depends on the amount of electricity your small business uses.
Your small can also be on a variable rate tariff. With this tariff, the unit rate can fluctuate during the duration of the electricity contract. If your electricity supplier reduces the electricity price, you can benefit from this. But the unit rate can also rise if the cost of electricity increases.
You can also find some electricity suppliers that offer a no standing charge tariff. The standing charge is a fixed fee that an electricity supplier charges daily regardless of the amount of electricity your small business uses. This charge can cover the expenses your electricity supplier incurs for supplying electricity to your small business premises.
With a zero standing charge tariff, you don’t pay this daily charge to your electricity supplier. In most cases, the electricity supplier can set a standing charge at zero on your electricity bill. Therefore, you can only pay for the electricity your small business utilizes.
A zero standing charge can be suitable for a business that operates part-time or seasonally. When you are not utilizing electricity, you don’t pay anything. You should remember that a unit rate can be more expensive on zero standing charge tariffs. Therefore, if your small business uses a lot of energy, then the electricity prices can rise with a zero standing charge tariff.
Your small business can also be on a multi rate tariff. You can pay different electricity rates at different times of the day. The electricity supplier offers peak hours and off-peak hours rates. During off-peak time, your unit electricity rates can be lower while peak hours have more expensive unit electricity rates. If you have a small business that operates outside of peak hours or at night, then a multi rate electricity tariff can help to lower your electricity bills.
If you want your business to go green, then a renewable energy tariff can be the right one for you. A green business energy tariff has become more affordable recently. There are several electricity suppliers around that are offering green energy tariffs for small businesses.
In conclusion, it’s important for small business owners to compare electricity prices regularly so that you can make sure that you are on the right electricity tariff. When you let your small business electricity to roll over, there is a chance that you are paying more money for your electricity. As a result, this can affect your bottom line and may prevent your business from growing.
Click the links below for any posts you have missed:
Deck Skirting Options that Add Safety and Style
5 Factors to Consider When Customizing An Outdoor Shed
How to Keep Mold Under Control In Your Home
How Can You Clean Your Area Rugs At Home?
Home Electrical Safety Tips You Need to Know About
The Bathroom Remodel Checklist
I’d love for you to join my email list! You’ll receive a notification straight to your inbox which will include links to my latest home project posts! Simply enter your address below.
Thanks for stopping by! Have a wonderful day/night depending on where you are in the world! Go with God and remember to be kind to one another!
Toodles,
[…] Learn About Small Business Electricity Prices […]