Business electricity rates and tariffs explained


There are hundreds of different business electricity tariffs because prices depend on a variety of factors including location, consumption and contract length. Here we give you the low-down.

Contract length

Business electricity contracts can vary in length from one to four years. Generally the shorter the contract term the lower the unit prices but as with everything there will always be an exception to the rule!

On the whole however, a one year deal will usually be cheaper than a four year deal. This can in part be explained by the fact that your energy supplier won’t be able to predict future business electricity prices and has to buy the electricity you will need in advance (when you take out your contract). It’s usual for prices to increase over time but no-one can really predict how much they will go up or down.

Location

As we explain in the article: What is the difference between commercial energy rates and domestic rates? where your business is located can affect the electricity rates that you are offered. If you are based in a rural area it will cost more to get energy to you than if your business is based in a city.

Consumption

Energy providers find it much more difficult to predict how much electricity a business will consume in a year compared with domestic consumers. There is what’s called “certainty of usage” for domestic users but businesses don’t benefit from this.

Electricity rates change daily

Tariffs can also change on a daily basis. This is down to the way energy suppliers buy their power and is explained more fully in the article: Why do business energy prices fluctuate?

If you miss your renewal period and end up being rolled over into a new contract you may find you’re paying higher rates than you should be as we explain in the article: Business gas rates and tariffs explained. This article also explains how being on out of contract rates, deemed rates or renewal rates can affect how much you pay for your energy.

As there are so many different elements that make up business electricity rates it’s easy to see why there are hundreds of different electricity tariffs. It’s also easy to see that it helps to have someone guide you through the process of comparing and switching. Your SwitchMyBusiness.com personal switcher will lead you through the whole process, providing you with all the options so that you can decide which one suits your business best.

For the latest business electricity news and information visit our electricity section.

Related Articles

inspiration

8 Must watch TED talks for small business owners

Feeling a drop in motivation? TED talks never fail to fire us up. Here are some of our favourites......

Read More
lightbulb header image

Energy News 04/08/2017

Yes, the British Gas price hike is undoubtedly the story of the week, but it’s not all that’s been making ...

Read More
pylon header image

Will Energy Prices Ever Go Down?

British Gas has become the latest energy supplier to raise their prices, just weeks after the Government discu...

Read More
Excellent, 9.8 / 10

Arron Newton- Fantastic customer …

"Arron Newton- Fantastic customer service Arron Newton has been First Class with me when it came to helping us to get a great deal on our business electricity and gas. His advice has been invaluable and his contact details are now firmly saved on our business database. I would thoroughly recommend both Switchmybusiness.com and Arron , many Thanks Dave Jackson, The Catering Butcher -Stoke"

This review was posted by David Jackson on the 17th of August 2017

I spoke with Bhavni today who was very …

"I spoke with Bhavni today who was very helpful and friendly. The switch over from British Gas to Dual was so simple. I was given a template to send to British Gas to terminate the contract by email, all I had to do was fill in my account number. There really was no hassle! Thanks"

This review was posted by Will Halton on the 16th of August 2017

Very good service

"Very good service. Explanations from Arron Newton were clear and thorough, making the process easy and straightforward. I would certainly recommend Arron and this company. Excellent."

This review was posted by Dulik on the 16th of August 2017

Mark Weeks - Excellent Service

"Mark Weeks has helped me with selecting the most Competitive Electricity supplier for our Business needs. I would thoroughly recommend both Switchmybusiness.com and Mark Weeks, many Thanks"

This review was posted by Jason Davenport on the 16th of August 2017

All good as far as I can tell

"All good as far as I can tell. 24 hours from first enquiry to signed contract and a good deal as well. Mark Weeks made it all simple and was friendly and helpful. He even got a decent rate for my mum!"

This review was posted by Chris Gutsell on the 16th of August 2017