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26 Nov

How to Get the Best Commercial Electricity Rates

by Simon Thompson

The first step, if you are looking to get the best commercial electricity rates for your business or organisation is to source as many quotes from energy suppliers as possible.

For comparison purposes, you will need to source quotes that are based on your current needs to find the best deal.

This issue also extends to micro and small businesses since some suppliers will have specific tariffs to meet their needs.

A micro business is defined as an operation with 10 or fewer employees and turning over less than £2 million per year.

Also, a micro business must be offered extra support when switching suppliers and have more details about how their current tariff compares with the old one.

Commercial electricity quote

Your firm’s business electricity quote also needs to consider whether you are looking for a fixed tariff – that’s where your electricity costs will remain the same throughout the contract.

And while fixed tariffs tend to be cheaper you will be tied into a contract until it ends and cannot switch providers before then.

The alternative is to consider a flexible energy contract, so you may have to pay for energy upfront but there will be lower rates offered for this purpose – though should the price of energy fall during the contract, then this will not deliver any savings.

Alternatively, it is possible for firms to install a smart meter, so they pay for the electricity they use or you could source renewable energy from providers and boost your environmental credentials.

Considering electric prices between providers

The next important issue when considering electric prices between providers is how the supplier puts their quote together.

In order to access the cheapest tariff, you need to appreciate the unit price, that is the cost per kilowatt hour (kWh) of electricity used, plus the standing charge, this is a fee paid daily for the supply of electricity.

So, while a potential new supplier may have a low unit price, they may have a higher standing charge, so your electric bill may actually increase when switching providers under these terms.

If you would like more help and information on how to get the best commercial electricity rates, then you need to contact the experts at D-Energi.