Getting a great deal on your business electricity can help keep every day running costs in check. But knowing what a great deal looks like can be tricky – so, here are the facts on getting the best business rate electricity tariff on the market.
Commercial energy deals are tailored to your specific electric consumption needs, but contracts are typically either fixed or variable:
Both have their pros and cons – for example, fixed rate deals mean you can budget accordingly but you won’t benefit from any reductions in electricity prices unlike with variable agreements.
Whichever you choose, make a note of your contract end date and negotiate a new deal before you find yourself on one of these less competitive tariffs:
It doesn’t matter what size your business is, the last thing you want is to pay more than you need to for your energy, which is why it’s really important to compare and switch as soon as you can.
Commercial energy deals are tailored to your specific needs, so it’s hard to predict typical business electricity rates.
The simplest and fairest way to compare business electricity quotes is to look at the cost per kWh.
As a guide, microbusinesses using between 5,000-15,000 kWh of electricity annually, can expect to pay between 13.2p–14.5p per kWh. Small businesses using 15,000-30,000 kWh may be charged anything between 12.4p-14.1p per kWh; whilst medium sized enterprises with an average electricity consumption of up to 50,000 kWh pay the lowest per kWh at 12.2p-13.3p.
You’ll also need to build in the daily standing charge which ranges between 22p and 27p with medium sized businesses paying the least.
Supply and demand has a big impact on cost and the bigger your business electricity consumption, the less you’re likely to pay. Other factors that affect the price include:
Commercial energy prices can change on an almost daily basis which is why it’s always a good idea to compare quotes when your existing contract comes to an end – otherwise you could end up paying more than you need to.
Signing a fixed term contract can save you as much as 60% on your electricity compared to the alternatives. Most contracts run for one year giving you peace of mind and the flexibility to move on to a better deal at a later date.
If you’re looking for longer term stability, then you can get two or even three-year contracts but bear in mind they can be difficult to get out of unless you’re willing to pay a very hefty cancellation fee.
However long you decide to sign up for, make sure you read the small print – it might be a chore, but there’s no cooling off period with business energy so you need to make sure you’re happy with it.
Switching electricity suppliers
If you think switching’s more hassle than it’s worth – then think again, because we can do it all for you.
Our energy experts are on hand and ready to help you save money on your business electricity – we just need to know:
After that, you can sit back and watch the savings roll in – so give us a call on 0800 156 0871.
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