When you’re running a business, one of your biggest priorities is keeping on top of your costs. One of the easiest ways to make sure you’re not paying over the odds is by making sure you’re getting the best deal for your business electricity. Shopping around for the best deal can be time consuming though, so it makes sense to let the experts do the hard work for you.
Comparing business energy tariffs can be complicated, because you have to look at separate quotes for gas and electricity. This makes it harder to work out which deal is the best value for your business. To make it easier to compare like for like, it helps to look at the price per kWh, so you can be sure to choose the right tariff for you.
The rate you pay for your business electricity can be affected by lots of things, including the size of your business and where your premises is located. These average rates should give you an idea of what you can expect to pay:
The amount you pay for your business electricity can be influenced by a number of things.
The type of business you own dictates how and when you use energy during the week. Not all businesses work Monday to Friday 9.00am to 6.00pm, so if you use a lot of energy during the evenings and weekends, you’re likely to be charged different rates than during the day. Evening and weekend rates are usually lower because there’s a lower demand on the network.
The amount of overall energy you use in a year usually has a bearing on your pricing. As a general rule of thumb, the more you use the lower your rates. But, the energy companies compensate for these lower rates by charging a higher daily standing charge. It’s always best to check your overall offer to see what you’d be charged for a full year, rather than only looking at unit prices.
The size of your business also affects your buying power. There are some ‘group buying’ organisations that work on behalf of SME companies, but they’re rare. A micro business has to choose from the standard tariffs that are on offer.
The location of your business within the UK affects quotes because prices vary around the country. Scotland has some of the highest prices in the UK, whereas the Midlands some of the lowest.
The length of your contract has an impact on both unit rates and daily charges. On average, every year you extend your contract adds an extra 6% to the unit cost, whilst 2% - 6% is deducted from the standing charge.
Commercial energy prices can change quickly depending on several factors, including wholesale prices, fluctuations in supply and demand, currency prices, regulator fees and government levies.
The best way to save money on commercial electricity is to sign a fixed term contract - fixed term contracts can often be as much as much as 60% cheaper than alternative plans.
Most contracts are good for one year and give you a guaranteed price throughout the term of the contract. Two and three year contracts are also often available with even lower tariffs. But, make sure you check the small print with longer term contracts, as the cost of getting out of them can be very high if you want to cancel early, and commercial contracts don’t offer a cooling off period.
Alternatively, you could consider switching suppliers to an independent company.
This is the information you’ll need when you switch your electricity supplier - you can find it all on your bill:
No matter how big or small your business, we’re confident our completely free and 100% impartial business electricity comparison service can find you a cheaper deal.
All businesses are different, and they all have different energy needs. That’s why there are no ‘off-the-shelf’ business energy tariffs available. Instead, your contracts will be designed to meet the unique energy demands of your business, so it’s hard to say exactly how much your business could save without comparing business electricity prices.
The amount you pay each year, and the amount you can save by switching, depends on things like the size of your company, the size of its premises, the number of employees, and its overall energy efficiency.
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