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14 Sep

Why You Should Understand Business Energy Prices Per kWh

by Simon Thompson
 

When searching for a new energy deal for your business, you’ll soon appreciate that you will need to understand business energy prices per kWh (kilowatt hour).

That’s because energy providers tailor their offerings in prices per kWh and understanding how this works will be key to sourcing a cheaper and better deal.

Firstly, a kWh is a unit of energy and the way for an energy supplier to measure how much energy your firm is using in one hour. The term kilowatt hour is to measure 1 kW of power that is used constantly for one hour.

As an example, if you have an electric heater in your office that has a 1,000 W rating, then it will use 1 kWh for every hour you use it.

Understanding business electricity rates per kWh

The other issue when it comes to understanding business electricity rates per kWh is how these appear on your bills.

Essentially, when you shop around providers you may find that one has a much lower price per kWh but they aren’t cheaper overall.

That’s because you will need to consider the standing charge, which is the daily price the supplier will demand to cover the cost of getting power to your premises and maintaining the National Grid.

This means that when you look at the prices from suppliers, you will need to understand both elements of these because a firm may have a low kilowatt hour price but a much higher standing charge, so there are no savings to be made.

Compare energy prices between providers

So, when you are looking to compare energy prices between providers you need to be wary over the offer made to ensure it not only meets your needs – the supplier must offer a bespoke deal for this purpose – and you don’t end up paying more than you are currently.

There is a range of factors that a supplier will consider when they offer a deal and these include the amount of energy your firm uses, the size of your business as well as the industry you work in.

And while suppliers cannot offer dual fuel deals for businesses like they can for our homes, you can have the same supplier deliver electricity and gas.

Other issues affecting energy contract prices are the location of your business and how long you would like the contract to be for – longer energy contracts tend to attract cheaper prices.

If you want to know more about understanding business energy prices per kWh then you need to speak with the experts at D-Energi who can help.

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