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1 Jan

How to Compare Business Energy Per kWh Prices

by Simon Thompson

The main reason for any firm to compare business energy per kWh (kilowatt-hour) prices is to see how much they can save before they switch to a new provider.

This is always a worthwhile exercise, and all firms and organisations should undertake doing so every year.

The best time to search the market is when your provider reveals what your next contract rates are and this is the nudge for checking other supplier’s rates.

And as a business owner, you will appreciate how important it is to keep your overheads low and by switching providers, you could drastically reduce your energy bills.

Compare business electricity per kWh prices effectively

However, you’ll need to compare business electricity per kWh prices effectively to ensure that you really are reducing your costs.

This means there are two prices that a potential supplier will quote and you’ll need to understand what both of them mean. They are:

  • The unit price: This is the amount your firm will pay for each unit of electricity, this is measured in kWh (kilowatt-hours) that your business will use. In addition, this unit price can be fixed for the contract’s duration or it can be variable, so it varies with the wholesale market price.
  • The standing charge: This is not a fixed fee and it’s an amount you pay daily for the National Grid to deliver electricity to your firm’s premises.

The big issue is that when you come to compare prices per kWh you may focus entirely on the unit price without realising that there is a much higher standing charge which will eradicate any savings you could be making.

Save on business electricity bills

When you need to save on business electricity bills, you may be surprised how varied the tariffs being quoted are between suppliers.

That’s because they use different criteria to put their energy contracts together. The issues they will look at include:

  • Your business type: the industry you work in and how much energy you consume will play a big part
  • Business size: the larger businesses will have the power to negotiate a better tariff per kWh because they are consuming much more energy than a small firm will.
  • Expansion plans: what your plans for the future are for your business also play an important role that a potential provider needs to take into account.

For more help and information on how to compare business energy per kWh prices effectively, then you need to speak with the experts at D-Energi.