14 Feb
Business Electricity: How to Find the Best Rates in the UK
Posted on Feb 14, 2022 by D-ENERGi
If you are running a business, then you will want to be able to easily compare business electricity prices per kWh to ensure you are not paying too much – as this could have a huge impact on your bottom line. After all, business electricity and gas are essential utilities to keep your business going, but this doesn’t mean you should let your energy spending get out of control.
When it comes to comparing business gas or business electricity prices per kWh then you need to be aware of a few things before you commit to a certain provider and contract, including:
What are business electricity rates?
Different utility providers will have different ways they use to calculate your total business energy bill, and understanding these different ways will help you to decide which one is best for you and your particular business.
The three main rates are:
- Fixed-rate – this means you can expect a very similar electricity bill every month as your total consumption is being calculated at a constant rate throughout your contract.
- Flexible rate – your rate will vary depending on market trends, and so some months may see you paying more for your energy than other months
- Half hourly electricity – a smart meter is used to record your specific energy usage and send it to your energy supplier at half hourly points throughout the day.
Each of these rates has its pros and cons. The biggest benefit of a fixed rate, for example, is that you always know what your rate is, whether the business energy market fluctuates wildly or not. However, the other side of this is that if rates do drop below your fixed rate, you won’t benefit from any reduction in costs.
This is where the benefit of a flexible rate comes in as if utility costs drop so do your bills. However, on the flip side of this, your monthly payments will also go up if the cost of utilities goes up.
The benefit of half-hourly electricity is that you always know how much you are spending on business electricity and so can make adjustments to your usage quickly. However, it does also mean that your energy provider may decide to charge you higher rates at peak hours as well.
The easiest way to find out the best business rates for both gas and electricity is to contact the team at D-ENERGi. We can quickly compare business electricity and business gas prices per kwh – saving you both time and money.
Making one of your employees an energy champion can be a very effective way of controlling energy costs and the Carbon Trust has published a number of tips for how to make the best of such a role.
They include: Reporting energy waste they notice, such as equipment left on unnecessarily.
Ensuring equipment and machinery are well-maintained and working efficiently.
Contributing and gathering ideas for improving the way things are done.
Testing and implementing new processes.
Communicating good practice and being an ambassador for change.
It’s also vital that your energy champion has the visible support of top management and all the necessary resources they need to be effective.
According to the Carbon Trust approach, the energy champion should: Be the eyes and ears for energy wastage.
Be responsible for reading meters and checking fuel bills.
Develop a weekly or monthly checklist of duties.
Consider forming an action team to report on progress and encourage further action. A good way of identifying waste initially is to stage an energy walkabout. Because your energy usage patterns will vary throughout the day, the walkabout times should be varied to match, for example, when the cleaners are in, at lunch, and at night or over weekends.
From these walks, your energy champion can identify where energy is being wasted and the possible reasons. Is it a lack understanding, are procedures being overlooked, is repair or necessary to reduce energy costs, or there is a need for capital investment.
We’re proud business energy suppliers with a passion for supporting companies of various sizes, whether with competitive gas tariffs, electricity or 100% UK wind power. Contact our team today to learn more.
We’re proud business energy suppliers with a passion for supporting companies of various sizes, whether with competitive gas tariffs, electricity or 100% UK wind power.
Contact our team today to learn more.
Read Article Finding Cheap Business Electricity
Finding cheap business electricity can be challenging when every supplier offers such competitive rates. This is why you should make the effort to shop around and receive as many quotes as you possibly can. Although this may be a chore, it is regarding one of the main factors within your business – money.
Ofgem Recommendations
The leading regulatory body, Ofgem recommend that you shop around for electricity rates, at least every three years to ensure you are being delivered the best tariff for your business electricity needs. When we say shop around, we mean the whole market. Do your research, look into energy suppliers that you may never have heard of previously, and try to look further into suppliers that don’t fall under The Big Six.
We are only a phone call away…
If you are looking to seek consultancy with regard to your electricity, D-ENERGi can review your electricity and advise you on what is best for you and your business when it comes to electricity. Please don’t hesitate to give us a call at 0800 871 7626 to speak with one of our experienced Account Managers in-house to help you understand your electricity as opposed to developing knowledge in generic electricity rates. Every business’s electricity needs are highly unique and you should not feel as though there is only one route you can take.
Hidden costs in electricity
Something that isn’t outlined by every supplier is the fact that there are several other charges that relate to electricity supply. We like you to be involved and we want you to have a 100% understanding on just where your electricity budget money is heading.
Some electricity quotes can be referred to as a mine field quote which can be presented in many different manners and can prove to show hidden costs. We can give you a cost analysis penny-to-penny of what and where you are spending your money on your business electricity.
P272
P272 is a new regulation given by Ofgem which affects around 167,000 businesses. P272 is mandatory and affects the way all electricity suppliers settle electricity consumption for businesses within a specified energy use. This will result in sites being migrated from non-half-hourly meters (NHH) to half-hourly meters (HH), and enable suppliers to produce more accurate bills.
More information and an infographic regarding P272 can be found here. If you would like to read our blog on P272 this can also be found here.
Get competitive rates today with a free quote
If you wish to seek electricity or any energy consultancy we are here until 5.00 pm every day ready to answer any questions you may have. Please call 0800 781 7626 for further information.
You can receive a free, no-obligation quote here and start to compare electricity rates today!
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