While all firms and businesses are encouraged to search the marketplace for cheaper energy deals, there are issues when you compare energy prices between providers.
The first is that you’ll need to understand how your bill is put together, and this will consist of unit charges, which is the amount being charged for the energy you actually use.
There’s also a standing charge which is the amount you pay for your business to receive supplies of electricity and gas through the National Grid.
By understanding what these charges are you will appreciate that a potential new provider may offer a lower unit rate, which appears to be a big saving but increases their standing charge, so there may be no savings at all or, even worse, you actually spend more with a new provider.
Understand business energy prices per kWh
This also means that you need to understand business energy prices per kWh because this is how a potential supplier will express their offer.
Essentially, a kilowatt hour (kWh) is the method used by an energy provider to measure the energy being used by the business every hour.
The important thing is not to focus on the kilowatt-hour charge in isolation because, as we explained earlier, a lower kilowatt-hour charge may not be beneficial for you.
Indeed, you will need to calculate how much energy your firm is using to predict what the annual unit charge will come to plus the standing charge, which varies.
This annual total is a better guide as to whether a new offer will actually benefit you and help lower your overheads.
Business electricity rates per kWh
This issue for business electricity rates per kWh is an important one and it’s not too complicated to deter firms from searching the marketplace and finding a new supplier.
It may also help explain why 40% of firms, according to a government survey, have never switched their energy supplier.
They may find the situation confusing and complex and undertake a like-for-like analysis is not that straightforward.
However, if you use experts who understand how the business energy market operates and have access to all of the deals, then you are saving yourself time and frustration in sourcing a new energy deal.
This will mean speaking with the experts at D-Energi who can help you compare energy prices between providers and deliver real cost savings as a result.