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

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6 Sep

Why Should You Compare Business Electricity Prices Per Kwh?

by Simon Thompson
 

Energy bills can be a real drain on your running costs, whatever size of business you have. Equipment, heating, and lighting are all essential items for most businesses, and it is really easy to get stuck on business gas and business electricity prices per kWh that are not right for your current needs or even sky-high.

Here at D-ENERGi we understand that just as companies can vary wildly in scale and size, so can their energy requirements. When it comes to business gas and business electricity use, it is certainly not one size fits all. That is why it is so important that you compare business electricity prices per kWh to find the best rate for your individual business’s needs.

What do you need to know about business energy tariffs?

There are two main types of tariffs used – fixed-rate and variable. Because the size and scope of each individual business are different, so will their requirements for electricity and gas be.

Choosing the correct tariff for your business will depend on how you use electricity and gas and how you want to pay for it. Certain factors need to be taken into account when selecting the right commercial energy tariff for your business, including your financial situation, where your company is located, and how much electricity and gas you use currently.

#Fixed rate tariff

This type of energy payment plan is suited to those businesses who are on a budget as your energy bill will be fixed at a set rate for a period of time – in some cases, this can be as long as four years. After this fixed rate tariff comes to an end, you can continue with the same supplier and switch to a different agreement, or switch to a different supplier altogether.

This tariff arrangement is preferred by business owners who wish to protect themselves from price changes during the agreed period of time as prices are usually cheaper than they are on a variable rate tariff.

Some energy providers also offer fixed rate tariff customers a further reduction on their bill if they agree to pay by direct debit.

One thing to consider with this tariff, however, is you are locked into it for the agreed duration of time and cannot switch tariffs if prices go down, or other better deals come onto the market.

#Variable tariff

Variable tariffs can offer a cheaper rate at the time of the initial agreement, but you don’t get the same level of protection against energy price rises on your business gas or electric bill and so the amount you pay will fluctuate based on the energy market in general.

A variable tariff represents the balance between the risk of energy prices rising in the long term and paying lower energy costs in the short term. This may be a balance that start-up or smaller companies may be more willing to accept in order to keep the cost of their immediate overheads down.

Within the variable tariff there are two main types of agreement:

  • Tracker price tariff – changes based on the wholesale market movement
  • Blend and extend price tariff – a unit rate that comprises of an average between your current contractual rate and that of the current available market rate

If you want to save money on your business gas prices per kWh then contact the team at D-ENERGi today.