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The Half Hourly Meter Guide
A half-hourly meter is essential for any UK business with peak loads of more than 100,000 kWh a year. Generally, half-hour electricity tariffs are intended to make readings more accurate for businesses, automatically recording energy consumption every half hour. This eliminates both the task and potential for error that come with regular manual readings.
This blog was put together to demystify the nature of half-hourly electricity suppliers and meter readings, so you can get a better understanding of what these readings might tangibly mean for your business during the Energy Crisis and beyond.
Are half-hourly meter readings more expensive?
In short, no. Half-hourly electricity tariffs do not intrinsically increase energy supply costs – this is a major oversimplification of the system. The reality is that costs can be increased and decreased across multiple data points.
Increased costs
1. Standing charges
The half-hourly meter standing charge is going to be a new cost for businesses that have recently had the meter installed. Half-hourly meters have a higher degree of technological infrastructure and data processing power, resulting in higher standing charges compared to traditional smart meters.
2. Capacity charges
This is something that isn’t necessarily caused by a half-hourly meter – rather a result that comes alongside its arrival at the workplace. Once you consume enough energy to necessitate one of these meters, you’ll likely have to pay a fee to your Distribution Network Operator (DNO). This fee ensures you can consistently meet demand based on your Maximum Import Capacity.
3. Operating costs
Operating a half-hourly meter involves additional expenses. Installation, maintenance and data transmission services contribute to the overall cost.
Decreased costs
1. Better unit rates
Businesses utilising half-hourly meters often benefit from lower costs per kWh. Larger businesses typically receive better rates, leading to significant savings.
2. Accurate billing
The increased accuracy from half-hourly meters provides precise usage data, meant to eliminate estimated bills, which can often be inflated. Even if your energy supplier provides fixed wholesale rates, the accuracy of your half-hourly meter should make these rates closer to reality, and easier to manage in the long term.
3. Tariff flexibility
Using a half-hourly system can allow businesses to utilise alternative, complex or more specific tariff structures. For example, there might be off-peak hour options, which could save them significant amounts of money.
Embracing Half-Hourly Meters
All in all, half-hourly meters are generally associated with businesses that will be spending more on energy in general. Yes, there are a few additional costs. However, the increased accuracy of data collection should in turn result in better energy management – at the very least, creating a more realistic picture of bills and tariffs. It’s not necessarily going to raise or lower your costs – it’s going to create a newer, transparent structure within them.
For more insights into business energy supply, half-hourly meters and more, don’t hesitate to visit our website today.
Ready to make the switch to a half-hourly electricity tariff? Contact our experts for a quick quote!
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