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How to Compare Business Electricity Prices Per kWh
There is no easy way to compare business electricity prices per kWh as there is no standard price for it at the moment, so it can be difficult for businesses to know how much they should be paying.
Having said that, there are some figures available out there that try and show what the average number of kWh business may use on average on annually, by business size, which is a good place to start:
- A Micro Business (employs less than ten people) will probably use around 8000 kWh a year
- A Small Business (employs between ten and fifty people) will probably be around 20,000 kWh per year
- A Medium Business (employs between fifty and two hundred and fifty people) will probably use around 40,000 kWh per year
- A Large Business (employs over two hundred and fifty people) will probably use around 60,000 kWh per year
Research has shown that Small and Medium businesses tend to pay between 2.9p and 3.4p per kWh but have a higher standing charge of approximately 70p a day. Lower prices for kWh tend to be reserved for those companies that are using 100,000 kWh or more.
As you can imagine, the business electricity prices per kWh can vary dramatically depending on which energy company your contract is with, as well as how many kWh you are using. This is why it is best to compare your annual bill when looking at switching suppliers, rather than just focusing on the absolute rates. Make sure you have your past years’ consumption data to hand when you are comparing prices so that you get a truer picture of what the overall price might be.
It is important to keep in mind as well, that the price per kWh is not the only cost you will see on your bill, you will also see a standing charge – which is paid at a daily rate regardless of how much energy you actually use. You will also see taxation charges as well, such as VAT and CCL (Climate Change Levy).
Keep in mind as well that business gas prices per kWh tend to be lower than business electricity prices as well. If you are thinking of switching business electricity or gas supplier, then contact the team at D-ENERGi as we can help make the process much simpler.