DCP228 and Business Electricity
What is DCP228? DCP228 is a regulation to be introduced by Ofgem in April 2018 which will change the way busin...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!
Lorraine was fabulous
"Lorraine was fabulous, so helpful and professional. The team are dedicated, not pushy and it makes a refreshing change to speak with a company who actually want to help and make a real difference. Our business saved over £3000.00 per year moving from British gas so over the 3 years fixed was £9.5k … massive saving! Thank you and we wish you all the best!"This review was posted by Kendall Burton on the 23rd of October 2018
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Lorraine - Excellent experience dealing with you!
"I have been talking to Lorraine over the last couple of weeks about switching our gas/electric supplies. Lorraine was more than keen to help and went to a lot of trouble researching the best prices on the market for us. These were all confirmed by emails which allowed me to compare with our current supplier in a clear way. Ultimately our current supplier made an offer we felt was comparable to the best Lorraine had found and we decided to stay with them (B.Gas) but I am very grateful for all of the help she gave me - for no result as it happens. A pleasure dealing with you Lorraine!"This review was posted by Richard Weekley on the 22nd of October 2018
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"I dealt with a gentleman called Mark Weeks. He was extremely efficient, helpful and humerous. He saved me 6 pence per/k/hr, quite the saving when your annual bill is over £12,000. I will be using this service again for my water bill!"This review was posted by EDWARD Wickman on the 22nd of October 2018
Cheryl Sreenan delivered excellent…
"Cheryl Sreenan delivered excellent customer service, professional and polite but very natural with it - it's great to deal with someone who knows their job and cares about their customers. Great savings too and a quick switch which is always good. Will be looking to switch other businesses when they are out of contract."This review was posted by Jackie Reeves on the 22nd of October 2018