The chance to compare electricity tariffs and rates for businesses tends to be less straightforward than comparing tariffs and rates for households. This is because most businesses need various amounts of electricity compared to an average household. Therefore, some business energy contracts usually have some requirements designed to protect electricity providers from a business that regularly switched its business electricity tariff mid-contract.
As a result, a business electricity provider can buy the electricity needed to meet the demands of your business in bulk to cover the period of the electricity contract. The good news is that it’s easy to compare business energy rates. You just need to understand the available business electricity contracts that are right for your business. This page discusses the key things you need to know when comparing business electricity rates.
Business electricity prices
A business electricity price has two separate charges which are unit rates and standing charges. A unit rate is a price that you have to pay for the electricity your business uses. This is usually the bulk that you pay for electricity. There is a standing charge which is the price you must pay for your company to access electricity.
Many business electricity comparisons usually focus on the unit rates instead of the daily standing charges. This is because it has the largest impact on your business electricity bills. But you should still consider the daily standing charge because it can also make a huge difference in the amount of money you pay.
You can save a lot of money on business electricity if you decide to switch to another business electricity supplier or use electricity at night, especially if your business is large. Remember that you can opt for a fixed-term contract that is suitable for large businesses. A fixed-term business electricity contract offers savings for businesses, though you still need to compare business electricity prices.
When it comes to a small business, you need to make sure that you use your money properly. You need to avoid off-the-shelf electricity tariffs. The best approach to choosing the right business electricity provider is to make sure that the electricity tariff meets your business needs.
There are several factors that you may have to consider when choosing the right business electricity tariff. For instance, a business with many business premises can decide to combine their electricity bills utilizing multi-site meters. A multi-site meter can combine your business purchasing power and may help you negotiate a better electricity price if you choose to switch business electricity suppliers.
It’s worth noting that there are various reasons why small businesses pay more money for electricity than large businesses. This is because big businesses tend to get large discounts and are more sophisticated energy consumers. Also, big businesses usually shop around to find the best electricity rates while most small businesses don’t.
Comparing business electricity rates
If your business uses more electricity than the average business electricity rates, you need to consider checking the best business electricity rates available today. The truth is that switching to another business electricity contract is quite simple and cannot affect your electricity supply. But there are also other things besides price that you need to consider.
You need to check the reliability of the electricity supplier before you decide to switch business electricity. Most businesses usually sacrifice customer support for cheaper business electricity prices, which is a huge mistake.
Some business energy suppliers are known for having poor customer support ratings, so choosing a business electricity provider with better overall customer reviews can be worth paying slightly more money. But remember that there is no cooling-off period once you decide to switch electricity suppliers. And your current business electricity provider can also refuse you to make the switch when you are still under a business electricity contract with them or you have an outstanding debt.
You can save money if you switch business electricity suppliers, though it tends to depend on your current electricity usage, tariff rate, and the availability of electricity deals in your local area. A business electricity contract can change daily, so you need to compare electricity rates against your current electricity bill so that you may have an accurate estimate.
When it comes to types of electricity tariffs for a business, there is a fixed rate contract. This contract fixes the price you need to pay for a specific period. In most cases, the contract can last between one and three years, though some business electricity providers offer them for up to five years. They are suitable for small businesses because they usually offer the best value.
There is also a variable or flexible rate contract. With this electricity contract, the price you have to pay can depend on the electricity wholesale prices, which can rise or fall. The good thing about this electricity contract is that it allows you to switch electricity providers at any point.
Big businesses that utilize above 100,000 kWh of electricity every year may need a half-hourly meter and can usually get a bespoke business electricity tariff that depends on the time they use their electricity.
You also need to take note of a dual fuel contract that is available on the market, but some business electricity providers don’t offer them to businesses. A dual fuel contract allows you to get both gas and electricity from the same business energy supplier. Keep in mind that it can have two separate energy contracts.
Some business electricity suppliers charge different electricity rates depending on where you operate your business. In most cases, this can be because of the location of an electricity supplier’s power plants, demand, transmission costs, and the availability of energy infrastructure. Ideally, a business electricity supplier can charge you more money if they incur more costs. That said, business electricity rates are usually cheaper than domestic electricity rates, but this depends on the size of a business. Larger businesses often pay significantly less for the electricity they use than domestic customers, though smaller businesses can sometimes pay more for their electricity.