Every firm and organisation should be looking at their overheads on a regular basis and one way to reduce costs is to look at your business electricity rates.
However, this is easier said than done because the market is a competitive one with lots of suppliers offering deals that suit the firm’s size and location.
Indeed, regardless of your firm’s size, even a ‘one-man band’ operation should be able to find a new electricity supply and save several hundred pounds from their electricity bill every year.
Obviously, small and medium-size firms will be able to save substantially more while very large organisations will be able to deal directly with a provider and not pay much more than wholesale rates.
New business electricity supplier for your firm
A new business electricity supplier for your firm will need to understand what your average annual usage of electricity is in kilowatt-hours, expressed as kWh.
For example, a micro-business will be using between 5,000 and 15,000 kWh but a small business might be using between 15,000 and 30,000 kWh.
The business electricity provider will be charging differing prices per kWh for a micro-business and small business with these prices expressed in pence – the larger the user, the cheaper this price will be.
There will also be a standing charge which is paid on a daily basis to help pay for the network that delivers the energy to your premises so a micro-business could, for instance, be spending between £650 and nearly £2,000 in total on their electricity bill.
Calculating your business electricity bill
So, when calculating your business electricity bill you will need to be aware that you could find a supplier charging a lower average price per kilowatt hour but they might be charging more for your standing charge.
Essentially, this means you may not be making any saving whatsoever so you will need to understand these charges when discussing switching to a new business electricity supplier.
Before you do speak with a potential new business electricity provider it might be a good idea to get an idea of what the market rates might be for your business and use this information when negotiating.
A good way to find an average market price for a firm of your size and location is to use a business comparison website which will give you an indication that you can then use.
Alternatively, if you want to understand business electricity rates and find a cheaper provider then the easiest and simplest way is to speak with the D-Energi team to see what they can offer you.