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!
Excellent service from Bhavni Manek
"Excellent service from Bhavni Manek. No pressure, made sure I understood exactly what the switch process entailed. Got me a great deal. Well done."This review was posted by Phil Whitehouse on the 17th of August 2019
Omar was a great help
"Omar was a great help, easy to understand"This review was posted by Tom Jenkins on the 16th of August 2019
Above and beyond...
"What superb service provided by Cheryl, very patient and nothing was too much trouble for her; above and beyond as we used to say. There is nothing exciting about switching suppliers but Cheryl managed to make the whole process painless and stress free, prices were great as well and as a charity that is good news. Many thanks Cheryl."This review was posted by Lynn Disley on the 16th of August 2019
Lorraine was very helpful and friendly…
"Lorraine was very helpful and friendly while helping me switch my business electricity to a much better deal, saving me thousands over the contract term. This was my first time using this service and I will now use it for my other sites and will also recommend it."This review was posted by Cheryl Simpson on the 16th of August 2019
"Great service x"This review was posted by James Tucker on the 15th of August 2019