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7 May

How to Reduce Your Business Electricity Prices Per Kwh

by Simon Thompson
 

Perhaps the easiest way to reduce your business electricity prices per kWh is to switch to a supplier with a lower tariff with a cheaper unit rate.

Essentially, the savings come because you’ll be paying less for the energy your firm uses which results in much lower bills.

But it’s not always that straightforward because you will need to appreciate that your bill consists of two costs that you need to understand.

As mentioned, the unit cost is the price your firm is paying for every unit of electricity used. This is measured in kilowatt hours – expressed as kWh.

There’s also a standing charge which is an amount charged every day for transporting electricity to your premises and also to help maintain the National Grid.

Compare business electricity prices per kWh

This means that when you compare business electricity prices per kWh that what appears to be a good deal because a new supplier offers a lower unit rate, may not actually be that good.

That’s because their standing charge may be higher to make up the difference in their low offer; what you need is a new supplier offering a lower standing charge and a cheaper price per unit of electricity used.

You could contact different suppliers independently to find out what they might offer for your firm’s needs but comparing quotes from different suppliers can be confusing as well as time-consuming.

Also, before you begin the process to switch energy supplier you will need to have some information to hand including how much electricity and gas you use, your location and an idea of what the market price will be for switching.

Research business gas prices per kWh

The other potential issue when it comes to lowering your overheads for energy is that you will need to research business gas prices per kWh separately.

That’s because you cannot source a dual fuel deal from the same supplier although you can use the same supplier for each, they will need to offer a bespoke quote for your gas and electricity supply.

The big attraction for having a bespoke quote for your energy needs is that brings reassurance that the tariff you will be moved to should be the most suitable for your firm’s needs.

The downside to this process is that it’s more difficult to calculate whether you’re on the best tariff for your needs or not. This is where help from experts who understand how the market works may prove invaluable.

 

If you want to know more about business electricity prices per kWh and your firm is ready to make the switch to a new supplier, then contact the D-Energi switching team for more information.