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13 Jul

How to Compare Your Business Electricity Supplier

by Simon Thompson
 

Comparing your business electricity supplier, and their tariffs are generally more complicated than comparing domestic electricity suppliers. This is because there are a lot more business electricity tariffs out there than there are domestic ones.

So, finding the right business electricity plan for you will depend on the type of business you have, as well as its size and location. For this reason alone, it is essential that you compare several quotes before you decide which is right for you.

Here are some things you need to keep in mind when comparing business electricity suppliers:

Average Price per kWh for business electricity

The UK Government has set different rates in p/kWh depending on the size of the business, and at the moment (July 2020) they are:

  • Very small business: 16.09 p/kWh
  • Small business: 13.95 p/kWh
  • Small/Medium business: 12.44 p/kWh
  • Medium business: 11.51 p/kWh
  • Large business: 11.25 p/kWh
  • Very large business: 10.01 p/kWh
  • Extra-large business: 9.68 p/kWh

 

So, on average the price per kWh for business electricity is around 11.66p/kWh. This is important to know, especially if you are a small business who is paying more than 13.95 p/kWh for example, as you will then know that you are paying more than the average.

It is important to remember, though, that the Government themselves has said “the average price of electricity (including CCL – climate change levy) has risen by 8% in real terms over the past five years and by 4.6% on the previous year.”

The difference between unit rate and standing charge

Business electricity prices tend to be made up of two separate charges, and these are:

  • Unit rate. The price you pay for the electricity you use – usually given in kWh. Makes up the bulk of what you pay for electricity
  • Standing charge. The price you pay for your business to have access to electricity – usually priced in pence per day.

 

When you are comparing business electricity suppliers it is important to take note of the standing charge, and not just the unit rate. Although the unit rate will have the biggest impact on your bill, the daily standing charge can also make a big difference to the amount you will pay.

Should I switch business electricity suppliers?

If you have looked at the average business electricity rates listed above and realised that you are paying more than average then you definitely should consider switching suppliers. It is a relatively easy process to undertake if D-Energi helps, and you shouldn’t see any effect on your actual supply.

The best way to get the cheapest business electricity rates is to get the D-Energi team to take a look at the best quotes on the market on your behalf.