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If you are wondering what is going to happen to business electricity and business gas prices in the next ten years, and how ‘net zero’ transmission policies will affect your business, then read on. The UK Government released its “Energy White Paper” in December last year (2020) which explained how they planned to move the UK to a net-zero future by decarbonising all sectors. In the report is the plan they aim to follow in order to cut carbon emissions by 230 million metric tonnes in the next ten years, while also supporting 220,000 jobs. But what does all this mean for business? Well, if you are a business owner you will be faced with making some quite radical changes over the coming years, which can be broken down as follows: A shift towards zero-emission electric vehicles (EVs). The UK Government has banned the sale of new petrol and diesel cars from 2030 which means you need to start thinking about how you are going to switch your business fleet to electric vehicles now. The construction of greener, and more efficient buildings. Gas boilers will need to be switched to more environmentally friendly options, such as low carbon or hydrogen-ready models. In the meantime, you can switch to greener business gas suppliers UK such as D-ENERGi The movement towards a flexible and low-carbon energy system. The UK Government has committed to generating emission-free electricity by 2050, which focuses mainly on wind and solar power. In the meantime, the easiest way for you to start reducing your carbon emissions as a business is to switch to a green business energy tariff.   This pledge by the UK Government to reach net-zero by 2030 means that now is the best time for you to start thinking about how you can help them to deliver on their climate change commitments. There are lots of opportunities out there for businesses who are serious about contributing to this decarbonisation challenge – whatever sector they are in or whatever size their business is.  Starting down the pathway of carbon reduction now will help you to balance both your environmental and economic aims, while also helping you gain control over your energy costs and increase your business resilience. To take the first step towards greener energy and take advantage of lower business electricity prices get in touch with the D-ENERGi team today for a free quote.
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15 Feb

Breakdown of a UK Business Electricity Bill

As one of the UK’s cheapest business electricity suppliers, it pains us to say this, but the fact is that business electricity bills have increased in price by around 43% in the past ten years. But what has led to this rise? Is it really due to wholesale price rises, as the top six energy providers claim? Let’s take a closer look at a breakdown of an average business electricity bill, and see how much the components of your bill may cost (in kWh). What are the three key components of a business electricity bill? A business electricity bill can be broken down into three main parts, which are: Commodity costs (also known as wholesale costs) – 33% Non-commodity costs (also known as government costs) – 33% Non-commodity systems and transmissions costs (from the National Grid) – 33% Now, let’s break these down even more Commodity Costs / Wholesale Costs In actual fact, the wholesale cost of electricity has remained fairly stable over the past ten years, although prices have fluctuated through different seasons. When this blog was written, the year-ahead price was £55.73MWh which is 5.6p p/kWh which is not far off the average price in 2010. However, making sure your business is on a suitable tariff by switching to D-ENERGI and the cheapest business electricity prices we offer, can help you save money regardless of wholesale cost fluctuations – especially if you are on a fixed-rate contract. Non-commodity Costs You probably didn’t know this but a third of the cost of your business electricity bill goes to the UK Government to pay for environmental initiatives. There are five key components that go into these charges, and these are: Capacity Market – annual auctions for the capacity to be provided by power stations, demand-side response, and energy storage Climate Change Levy – designed to reduce carbon emissions and improve energy efficiency – and only payable by businesses Contracts for Differences (CFDs) – CFDs guarantee a fixed price for each MWH generated aka the ‘strike’ price. These are the current contract mechanism for low carbon generation Feed-in Tariffs – introduced to promote the installation of small-scale renewable and low carbon electricity generation – capped at 5MW Renewables Obligation Certificates (ROC) –support scheme for development of large-scale electricity generation Non-commodity Transmission and Distribution Costs The final part of the charges on your bill comes from the use and maintenance of the electricity transmission and distribution system, and typically include: Balancing Services Use of System (BSUoS) – costs that relate to the day-to-day operation of the transmission system which balances the grid Distribution Use of System (DUoS) – Cover the cost of distributing the electricity to the system Transmission Network Use of System (TNUoS) – The cost associated with transmitting electricity from power stations to grid supply points via the high voltage (HV) transmission network. If you are looking for the cheapest business electricity rates UK, then switching to D-ENERGi can help. Contact us today to find the most suitable tariff for your business.
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Business and domestic electricity come from the same source, and are supplied through the same cables – but they are not the same. Your business electricity contract is set up differently from your domestic electricity contract – and so you will pay a different rate. This is why it is always worth it to compare business electricity prices per kWh. If you run a large company, you may be charged a half-hourly rate for your electricity, or have to have more than one meter installed to ensure your readings are accurate, and so you need to keep a close eye on your business electricity prices per kWh. There is one thing that domestic and business electricity do have in common though. That is the fact that if you haven’t switched a supplier in the last 12 months, your bills will be higher than they need to be! If this is the case, then D-ENERGi can help you to get a better deal. How to switch business electricity supplier Switching to a better business electricity (or business gas) deal is so easy with D-ENERGi. All you have to do is fill in your Name, Company Name, Phone Number and Email Address and we will contact you. Alternatively, you can speak to us directly on 0800 781 7626. We will find out a little bit more about your business and your current energy use, and then we will offer you the most competitive prices and rates in the UK. Why should you switch your business energy supplier? Every business is individual, no matter what niche it is in, and so every business energy need is individual as well. It doesn’t matter the size of your company, or what you do, if you have let your old deal lapse then you will probably be paying more than you need to – and this can negatively affect your overheads. Switching to D-ENERGi, the independent energy solutions provider means we can help you really drive down your energy costs. We have spent years creating great partnerships with energy suppliers and working to negotiate exclusive deals to try and protect you against price hikes and make it easier for you to budget month to month. How much money could you save by switching to D-ENERGi? The amount of money you could save by switching to D-ENERGi will depend on the size of your company, the size of your business premises, the number of employees you have, and your overall business efficiency. Why not call our business energy experts today on 0800 781 7626 to compare business electricity and business gas prices per kWh, and find out exactly how much your business could save?
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