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20 Apr

Understanding Business Energy Prices to Save

by Simon Thompson

While many firms and organisations will spend time finding a new energy provider, understanding how business energy prices are calculated will be helpful.

That’s because a potential new supplier may offer what appears to be a great deal but on closer examination is nothing of the sort.

An effective way of resolving this issue and accessing the best business energy prices is to speak with the D-Energi team.

However, if you want to shop around then understanding how the costs are broken down will help but there are two important issues that you need to appreciate.

Potential new business energy supplier

Your potential new business energy supplier will offer a unit cost which is the price per unit of energy, calculated as kWh, that your business will use.

There’s also a standing charge which is a daily cost that you must pay regardless of your energy usage. This cost is set for each kilowatt hour of energy your firm will use.

It may appear that a firm offering a quote will deliver a low unit cost which may appear to be a big saving but the standing charge may increase slightly so the savings effectively disappear.

There are also other issues affecting the price a potential supplier may offer and these include the amount of energy you use, your location and whether you want to sign up for a long-term contract.

Switching business energy provider

There’s no doubt that by switching business energy provider you will probably save substantial amounts; even a micro business can save hundreds of pounds every year.

This saving will obviously depend on how much energy the firm is using but larger concerns could make savings that run into thousands of pounds.

This means that carrying out a business energy comparison every year when your current supplier offers a new contract could be an effective way of reducing overheads and boosting profitability.

Sadly, a survey by the government highlights that 40% of firms have never switched so they are likely to be paying a lot more for their energy when a phone call of just a few minutes will reveal what the potential savings are.

Also, the switchover process is straightforward and there is no loss of supply to your business premises when you do switch to a new provider.

If you want to know more about how business energy prices are calculated so you can save on your overheads, then it’s time to speak with the expert team at D-Energi.