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6 Dec

Understanding Commercial Electricity Rates to Boost Profitability

by Simon Thompson

It’s probably on every business owner’s ‘to do’ list of how understanding commercial electricity rates will boost profitability but not everyone has the time to carry out the research.

This article will help businesses of all shapes and sizes explain why switching electricity supplier will lower their costs and, potentially, boost the customer service levels they enjoy.

The most important piece of information available to a business owner is their electricity bill and there are three items on there you need to be aware of:

  • When your current contract ends
  • Your current unit rate
  • The standing charge.


Appreciating the standing charge and unit rate will prove useful since switching to a supplier with a lower rate, for instance, may not be the impressive deal it appears to be once you calculate their higher standing charge, for example.

Know more about the electric prices you are charged

It may be that your business’s energy bills appear to be too high and you want to know more about the electric prices you are being charged.

Basically, the standing charge element of your bill is the amount you will be paying every day for the supply of electricity to your business premises. This amount is charged regardless of the amount of electricity your firm will be using.

The unit rate being charged by your supplier is for every kilowatt hour, usually described as ‘kWh’ on your bill, and this measures the amount of electricity you have used.

Again, accessing the lowest unit rate does not mean necessarily that you will be paying the cheapest possible bills since it may depend on how much energy you are using.

For example, large firms will be wanting a low unit rate to help keep their costs down and very large firms will access prices close to the wholesale market price.

On the other hand, smaller firms will be offered a variety of prices and this is where they will have to do their homework.

Access a cheap commercial electricity quote

However, before you can access a cheap commercial electricity quote you will need to know when your current contract will end. You cannot switch supplier mid-term without incurring a hefty fee.

There will be a window of opportunity for switching and your current supplier will write to you to say your electricity is up for renewal and offer a new contract revealing what the new terms will be. This is your prompt to look at the market and find a cheaper and better deal.


When it comes to understanding commercial electricity rates to boost profitability, it will pay dividends to speak with the experts at D-Energi who understand how the market works and will have access to the latest and best deals and offers that will benefit your business.