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10 Jul

What Are Business Energy Prices Per Kwh?

by Simon Thompson
 

If your business is looking to switch a supplier to reduce costs, you may be asking, ‘What are business energy prices per kWh?’

This is a business exercise that could see you switching to a tariff offering a lower rate which will help reduce overheads.

The process to switch is straightforward but you will need to appreciate how your business energy costs are calculated in the first place.

There will be a range of costs but there are two that you should pay attention to which is the unit cost, this is the amount paid per unit of energy which is measured in kilowatt-hours (kWh).

In addition, there is a standing charge which is the amount levied for paying the National Grid to deliver energy to your premises.

Compare energy prices

This is the first step to compare energy prices because when you find a deal with lower unit costs as well as standing charges, then you will be saving money on your firm’s energy bills.

However, a busy business owner may not have the time to source various quotes and then you will need to compare the offerings between providers as best you can.

That’s because the supplier must offer a bespoke deal which makes comparing these on a like-for-like basis a tad more difficult.

Essentially, sourcing a business energy deal for meeting your needs is more complicated than supplying energy for our homes.

Business electricity rates per kWh

There is a range of factors that will influence the business electricity rates per kWh that a potential supplier will quote. These factors include:

  • The industry you work in
  • The size of the firm
  • Your firm’s average annual energy consumption
  • The location of your premises
  • The potential length of the energy supply contract.

All of these will have an impact on the cost per kWh unit plus the prices will be influenced by movements in the cost of wholesale gas and electricity.

In addition, if you have expansion plans for the next year then you will need to mention this to a potential new supplier so they can tailor their offering accordingly.

Some busy business owners may not appreciate the fact they will need to speak with a supplier directly to offer these details. This is also the case if you use an online comparison site as you will still have to speak with the supplier because they must create a bespoke deal for meeting your firm’s needs.

If you would like more help and information about understanding business energy prices per kWh, then you need to speak with the experts at D-Energi who can source a cheaper deal and help with the switchover process.