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Incorporated in 2002 we have become one of the longest established and well respected UK independent businesses energy suppliers.


28 Nov

Tips to Help Understand Business Energy Prices

by Simon Thompson

While most business owners will have a busy day running their organisation, appreciating a few tips on how to enjoy lower business energy prices could pay dividends.

This means looking at your firm’s energy bill to understand the unit rate, the standing charge, and the contract end date.

The unit rate is the amount your firm is paying for every kilowatt-hour (kWh) of gas or electricity you are using.

However, achieving a lower rate from a new provider does not necessarily mean that you will be paying the lowest possible price for your energy.

Essentially, you will need to consider how much energy you use and then find a suitable tariff that matches your needs; a low unit rate may be preferable for heavy users but smaller firms may prefer a higher unit rate but with a low or no standing charge.

Standing charge from your business energy supplier

This issue of the standing charge from your business energy supplier needs to be considered carefully and it’s the amount you pay every day for energy to be supplied to your premises.

This price is fixed and does not depend on how much energy you are using.

When searching for new energy providers, you will realise that business electricity suppliers will have a standing charge, but not every business gas supplier will do.

However, even if there is no standing charge the cost of delivering energy to your premises may be included in the unit rate.

In addition to the unit rate and standing charge, you will need to know when your contract end date is so you can switch to a new, cheaper energy supplier.

Other costs for business energy bills

There are also other costs involved for firms and their business energy bills, which they will need to understand before shopping around.

One of them is the Climate Change Levy, which is a cost for every unit a business uses of non-renewable energy.

Not every firm will need to pay the levy if they are not big users of energy.

Also, most firms will be paying VAT at 20% on their business energy bill, though for smaller users this could be as low as 5%.

If you are looking for more tips and help to understand business energy prices and how you can reduce overheads by switching energy suppliers, then it’s time to speak with the team at D-Energi.