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23 Feb

Why Your Business Needs to Understand Commercial Energy Prices

by Simon Thompson
 

One of the most important reasons for why your business needs to understand commercial energy prices is that there isn’t a one-size-fits-all tariff.

That’s not the same when we are looking for new energy suppliers for our homes and the business energy supply market is a competitive one.

The commercial energy prices being quoted for a business will be made up of several aspects and will depend on how much energy you use and also your business size and location.

There are also differing commercial energy rates for fixed and variable tariffs so careful thought needs to be given about what your potential future energy needs will be.

Finding a commercial energy quote quickly

Finding a commercial energy quote quickly that best meets your firm’s needs can be a confusing process because the supplier will need to offer a bespoke quote from the information you supply.

It will also become apparent that the unit price being paid for business electricity use may be a lot cheaper than we pay for our homes but then the business will be using more energy.

There’s also the difference between a variable and fixed rate tariff where a fixed energy price plan will define what the unit price will be over a set period of time. This can be between one and three years but some suppliers may offer five-year fixed deals.

This can be of huge help for those firms wanting to plan their cash flow and future overhead costs effectively. It does though put your firm at a disadvantage should energy prices fall and you’re tied to a long-term contract paying more than you need to.

Looking at commercial energy suppliers

The other big issue when looking at commercial energy suppliers is whether you have switched providers in recent years; by not switching you may have been put on ‘deemed’ rates.

If you have, then these rates are generally more expensive than new customers will enjoy and some suppliers may offer out of contract rates which also tend to be dearer.

There’s no doubt that you could save money on your business energy overheads by simply shopping around but this can be a time-consuming and confusing process.

 

The easiest way to find the best commercial energy prices for your business is to speak with the friendly team at D-Energi to see what offers and tariffs are available.