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16 Aug

Why Compare Business Electricity Prices Per Kwh?

by Simon Thompson
 

For a busy business owner wanting to reduce overheads, they may be wondering why they need to compare business electricity prices per kWh (kilowatt hour).

The answer is straightforward and that’s because you need to compare deals between providers as their offered price will be expressed as a unit rate.

This unit rate is for the actual amount of electricity being consumed by your business and will be shown as an amount per kilowatt hour. This is the rate that will vary between providers.

However, business owners will also need to calculate what the standing charge will be and this is the amount that is paid every day to the National Grid for delivering electricity,.

You may find that by focusing completely on business electricity prices per kWh, that you may not notice that the standing charge is substantially more and any savings you make on the unit rate are eradicating by the standing charge being levied.

Understanding business electricity prices per kWh

Along with understanding business electricity prices per kWh, business owners will also need to appreciate how a bespoke deal is put together and how a provider calculates their unit rate.

Unfortunately, a provider will not be charging the same unit rate to every business in the country.

Instead, there is a range of factors that influence these prices, including where your firm is located, the industry that you work in and also how many employees you how.

The potential provider will also want to know how much electricity you consume every year before offering a tariff.

Cheaper business gas prices per kWh

This situation with understanding prices also extends to those firms wanting cheaper business gas prices per kWh.

Again, there are a range of influences on gas prices that are very similar to those being offered by electricity providers.

And while most firms are spending much less on their gas bills than they are for electricity, this is still a worthwhile exercise to reduce overheads.

Not only by reducing overheads will you boost profitability, but it’s also possible to find a supplier offering a consultancy so you can reduce your consumption levels of energy, help our environment and boost your green credentials.

While there is a lot to learn when searching for a new electricity or gas provider and why you must compare business electricity prices per kWh, you should speak with the experts at D-Energi who can explain more and help find a cheaper energy deal.