Business Energy Costs Post-Brexit
North West businesses need to act quickly to secure their energy prices, before Brexit cost increases With the...Read More
Comparing business electricity tariffs can be confusing with so many options available to customers. A variety of unit prices, contract lengths and standing charges can make it difficult to know which business electricity supplier you should choose. However, SwitchMyBusiness.com is here to help! With this article, we will guide you on which factors impact your electricity plan and what may increase energy costs for your business.
Contract length can make a big difference in business electricity prices. Contracts can vary from 12 months to 36+ months, and the price per kWh for each may be very different. In general, the shorter your energy contract, the lower the unit price is likely to be.
However, when considering the long term, there are exceptions to this rule. For example, if you decided to choose a 36 month contract with fixed electricity prices and the cost of electricity increased within the first year of your contract, your business is likely to spend less on energy than if you had organised a 12 month contract as costs have been frozen for three years.
Electricity unit prices may initially be higher on longer contracts as suppliers need to predict future business electricity prices, and as energy rates typically increase, this needs to be planned for.
Your business location can impact electricity rates, as suppliers may incur higher costs when providing particular businesses with energy. Businesses in more rural locations are likely to be charged more for the energy they consume as it is more difficult for suppliers to reach rural areas than if your business was based in a city.
Although it may be difficult for electricity suppliers to predict how much energy business customers are likely to use compared with domestic customers, as a business’s electricity consumption increases, the average price per kWh typically decreases. For example, a business with an annual electricity usage between 5,000-15,000kWh will on average pay 12.5p per kWh, whereas a business with an annual usage between 30,000-50,000kWh will pay 10.5p per kWh on average.
Business electricity suppliers buy their energy in advance, so it is important to let your supplier know how much your business is likely to use within a year. Suppliers also need to predict how much your business will use over the next two or three years depending on your contract length, so being clear about your business’s electricity consumption is very important.
Electricity rates change on a daily basis and this can impact the business energy quotes you receive as they may change day-to-day. We understand it can be confusing when comparing electricity prices as the volatility of the market can very quickly alter the prices businesses are originally offered. This is why we encourage customers wanting to compare electricity prices to act quickly when they find a tariff they like to avoid disappointment if energy prices increase.
It is clear to see there is a wide range of factors that influence business electricity rates, and this makes it easier to understand why there are so many different electricity tariffs. We know how confusing it can be to compare business electricity rates when there are so many factors to consider, and that’s why we encourage business customers to use our quick and easy comparison service! Our energy-switching experts will help you compare the best energy tariffs for your business, and once you’ve chosen your favorite, we’ll complete your switch for you!
I spoke with Nicole today regarding our…
"I spoke with Nicole today regarding our electricity supply at new premises and she took the stress out of finding the best deal for our company as there are so many things to think about when moving. Thank you Nicole. Madeline Lugton"This review was posted by MADELINE LUGTON on the 23rd of April 2019
Bhvani was excellent and very…
"Bhvani was excellent and very efficient. Made my job as Treasurer a great deal easier. Please thank her."This review was posted by Adrian Stannard on the 18th of April 2019
Lorraine was very helpful in helping us…
"Lorraine was very helpful in helping us to transfer our energy provider"This review was posted by Tony Kidby on the 17th of April 2019
Bhavni was incredibly helpful
"Bhavni was incredibly helpful, informative and patient. No hard sell, just gentle reminders. Will recommend to friends, family and business associates."This review was posted by Jox65 on the 15th of April 2019
Helpful and quick
"Helpful and quick, thanks Lorraine"This review was posted by Arron Seymour on the 12th of April 2019