Halloween horror film lessons for UK SMEs
Classic Halloween frighteners are more than an easy way to while away a few hours. What lessons do horror film...Read More
The standing charge and unit rate are the two important comparisons that you need to make when deciding which business energy contract is the most suitable for you.
A standing charge is a fixed daily cost which doesn’t change, regardless of how much electricity or gas you use. The standing charge covers the costs of supplying you with energy, including maintenance, meter readings and the logistics of keeping you connected to the network. Some business tariffs don’t have a standing charge but this doesn’t mean that they are a better option. Generally on these tariffs you pay more for the first so-many units used until the equivalent cost of the standing charge has been reached. After this point the unit rate will usually go down. In most cases, it’s more cost effective to choose a plan with a standing charge. However, if you have a building that needs very minimal heating, then a tariff with no standing charge may work for you.
Even if your plan doesn’t have a standing charge, you may still see it listed on your bill.
The unit rate is the cost for each unit of energy used. It includes other costs such as transportation but doesn’t include costs such as VAT or the climate change levy (CCL). Your unit rate will vary based on your tariff, your payment method, and where in the country you are located.
Let’s say that you have been offered a standing charge of 26.03 pence per day. The amount this will cost you over the course of a year is 0.263 (pence per day) X 365 (days per year). This gives you an annual cost of £99.995.
Then you need to work out the cost of the energy you use each year. Let’s assume the unit rate you have been quoted is 12.03 pence per kwh and your consumption is 10,000 kwh per annum. This will give you an annual cost of £1,203.00.
Therefore your total bill for the year will be £99.995 + £1,203.00 = £1298.995 (rounded down to £1298.99) – this is before other costs such as VAT and the CCL are added.
However, you may be offered a lower standing charge, for example 18 pence per day, which works out at £65.70 a year. But the unit rate may be higher e.g. 18 pence per unit for the same consumption of 10,000 kwh a year. This will work out as £1,800 making a total cost of £1,865.70 a year.
So, even though the standing charge is lower the higher unit rate means the total cost for the year is more. It means that if you have a very low consumption it may be better to compare unit rates rather than the standing charge.
Your SwitchMyBusiness.com personal switcher will be able to advise you on which tariff will be the most suitable for your business needs. Remember, just because it’s the cheapest doesn’t mean it’s the right one for your business.
For more information on business electricity visit our electricity page.
Competent and courteous service.
"Marie was knowledgeable and helpful. I feel able to recommend the service given without reservation. David Slesenger"This review was posted by David Slesenger on the 16th of August 2016
"Nadia was very helpful"This review was posted by Robin on the 16th of August 2016
Excellent Customer Service *****
"Jonathan Burgess is an asset to Switch My Business. He made me feel at ease and was more than helpful at all times. He made regular contact and guided me through the whole process which made switching a breeze. I just wish there were more customer service advisers like Jonathon whose friendly and happy demeanour make your day a much nicer one. Well done Switch my business and more importantly thank you Jonathon for all your hard work! Maria Owen Lodgecrest"This review was posted by Maria Owen on the 17th of August 2016
EXCELLENT CUSTOMER SERVICE
"I totally agree with a customer maria owen,Jonathan Burgess was such a pleasure dealing with and is truly a asset to the company, he made it very easy to switch my electricity companies, Jonathan Burgess was very helpful, easy to talk to it was like talking to a friend not just a customer adviser. I would definitely recommend switchmybusiness and try get hold off Jonathan Burgess if possible and have the same excellent service as I did. Rajan Shanan"This review was posted by Rajan Shanan on the 19th of August 2016
Excellent and very helpful
"Arron who dealt with my switch of energy and gas has been a huge help and extremely efficienct and easy to deal with. Despite British Gas throwing obstacles in the way at every turn he has doggedly stuck to his task and saved the day. Thanks Arron."This review was posted by Rod Pryce-Jones on the 19th of August 2016