14 Mar Most business owners are familiar with how domestic gas contracts work, as they will have been domestic gas customers for years. But, when it comes to business gas contracts they may not be aware of the key differences.
In this guide, we will look at the differences between business gas and domestic gas, and how to make sure you are getting the cheapest business gas prices.
Is business energy more expensive than domestic energy?
A lot of business owners may be wondering if business energy is more expensive than domestic energy. This may seem like a simple question, but the answer is actually quite complex as there are a number of different factors that need to be taken into account.
Although the actual electricity and gas supplied to both business and domestic customers comes from the same suppliers and is delivered through the same pipes and cables, energy suppliers will offer different contracts to business customers than they do to domestic customers.
Domestic and non-domestic energy contracts operate in very different ways. Although domestic energy prices tend to grab more headlines, especially at the moment, it is important that business owners understand business energy contracts and supply so that they can ensure they are getting the best deal for their business.
Average business energy rates vs domestic energy rates
Electricity and gas rates can seem cheaper for business customers than domestic customers at first glance, but this is because business customers tend to use more energy over a shorter period of time. This means that commercial clients can negotiate with suppliers and choose the best contract for them based on their individual business needs. Domestic customers won’t be offered rates that are tailored to their personal needs, as they will just be charged the same rate as the rest of their region.
What are the pricing criteria for business gas customers?
Domestic customers are charged a set price for their gas based on their geographical location and payment method, whereas the pricing criteria for business gas customers take into account: Business type
Contract length
Credit score
Demand profile
Geographical location
Payment type
Finding the cheapest business gas prices can be a time-consuming task, and can get confusing at times. If you are wondering how to compare business gas prices then D-ENERGI is here to help. Our team of business energy experts will guide you through the business gas price comparison process and help you secure the best deal for you.
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22 Nov One of the easiest, and quickest, ways to save money as a business is to compare business gas tariffs and switch to a cheaper one.
Research has shown that only around 33% of SME businesses switch their business energy supplier annually, which means that around 2.93 million companies are being overcharged.
D-ENERGi has made it as easy as possible to compare business energy prices to make sure you are getting the best deal possible. We help lots of businesses every year save on their energy prices by switching business gas suppliers.
We work with a variety of businesses in many different industries.
What are the average business gas prices?
It can be hard to say exactly what you should be paying for business gas. With prices increasing all the time it has never been more important to take control of your business energy bills and save money.
Business gas prices tend to depend on several factors and are often dependent on the length of the contract. For example, a business selecting a 1-year contract will likely face paying higher rates than a business selecting a 2-year fixed-rate contract.
While you may not want to tie yourself into a longer contract, the fact is they tend to offer the best prices.
How are business gas prices calculated?
Business gas prices are calculated in a different way to domestic gas prices and are affected by several different things, including: Business location
Current spends on business gas
Energy market activity
Overall consumption levels
Size of business premises
Type of business gas meter
How do I switch business gas?
Just fill in the online form on the D-ENERGi website with some very basic details, and we will search the latest deals for the best one for you.
We then call you straight back with the best quotes from the market.
All you have to do is decide which is right for you, and switch.
Switching business gas and electricity contracts should be a priority for every business, as it could save you up to 55% on your renewal letter offer. This is why it is important to compare business electricity and business gas tariffs every year to make sure the price you are being charged is competitive. Get in touch with D-ENERGi today for your free quote.
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8 Nov Having been a domestic energy customer for many years, most business owners will be familiar with how their home energy contracts work. But when it comes to contracts from business energy suppliers, they may not realise that there are key differences between domestic energy and business energy – and in this article, we will take a closer look at what these differences are.
What are the main differences between domestic and business energy?
The following points summarise the main differences between domestic energy and business energy: Energy unit price – Business energy tends to be cheaper per unit, than domestic energy (depending on your business electricity suppliers of course!)
However, business energy is subject to 20% VAT while domestic energy is only 5%
Business energy also has to take into account levies and energy regulations which domestic energy customers don’t have to worry about
Contract terms tend to be longer for business customers than they are for domestic users
You will generally need less information and get simple energy quotes as a domestic customer, whereas business energy quotes tend to be more complex and so need more information from you at the start
Is business energy cheaper than domestic energy?
Following on from the information above there may be business owners out there wondering, is business energy cheaper than domestic energy?
Although this seems a simple question, the answer is quite complex, and there are a number of factors that need to be taken into account. The actual electricity and gas supplied are the same for business customers as they are for domestic customers, the contracts will differ wildly for both. This is because domestic and business energy suppliers operate in different ways, and prices will vary depending on a variety of factors.
Average business energy rates vs average domestic energy rates
Electricity and gas prices may seem cheaper for business customers than they are for domestic users as businesses tend to pay a lower price per unit for their energy, due to the large volumes they consume leading them to economies of scale – so the larger the business the lower the unit rate. This means that most business owners are able to negotiate and choose contracts based on their particular needs, which is something that domestic customers are not able to do – they are just charged the same price as everyone else in their region.
But is business energy actually cheaper overall than domestic energy?
No. Not when you take into account the other charges that are then added on, such as: Levies such as the Climate Change Levy (CCL)
Pricing criteria such as business size and contract length
Price fluctuations with variable price contracts
VAT
Wholesale energy market pricing changing at renewal
Finding the best business energy deal can be a confusing and time-consuming task. But D-ENERGi is here to help. Our team of energy experts will negotiate with business electricity and business gas suppliers on your behalf and secure you the best business energy deal.
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18 Oct If you are wondering how you can save on business electricity, then you have come to the right place. The team at D-ENERGi is committed to selling and delivering market-leading business electricity and gas energy products in order to help small, medium, and large businesses reduce their business energy costs.
One of the ways we do this is by providing a service that allows you to compare business energy per kWh with no hassle, to ensure you are on the best tariff for you. But what else can your business do to help reduce your energy costs? Here are some tips on how to lower your energy consumption, which should in turn lead to lower energy bills.
What is energy efficiency?
Energy efficiency is the name given to the process of businesses and domestic customers using less of the world’s energy resources to produce the same or an improved result. One example of this is the 90% less energy you will use if you replace all of the traditional fluorescent bulbs in your office with LED.
How to lower energy consumption as a business
The best way to lower your energy consumption as a business is to get all of your employees to think about the energy they use and follow some of these tips below: Save 90% of energy by replacing your office desktops with laptops. A high-end desktop will cost around £140 to run for 8 hours a day compared to a laptop that costs around £7
Replace laserjet printers with inkjet printers to save 90% of energy on printing. However, you will need to balance the lower cost of energy with the higher cost of inkjet printer cartridges
Make sure employees switch off all of the equipment at night and at the weekends, rather than leaving them in sleep or standby as many pieces of equipment will consume nearly the same amount of energy when they are in standby mode as they do when switched on
Switch lights off when they are not in use – you could try putting stickers near light switches to remind people to do this
Use motion sensors in places that are used less frequently, such as corridors and toilets
Let natural light brighten up your office space by opening blinds fully – you may find you don’t need the lights on at all
Try and keep your business premises at an even and regular temperature rather than flicking the heating on or the air conditioning on and off all of the time
These are just some of the tips we have learnt to help businesses lower their energy consumption, but the best thing you can do to save money on your business energy bills is to ask the D-ENERGi team to help you compare business electricity per kWh.
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5 Jul The Federation of Small Business recently claimed that as many as one-third of small businesses highlight energy costs as a barrier to the growth and success of their company. However, 70% of small businesses also say that they find it difficult to compare business energy tariffs and 43% have never switched business electricity supplier.
So, if you want to find out how to save money by grabbing cheaper business electricity rates then read on:
Pick your lightbulbs wisely
If you currently use fluorescent or halogen light bulbs, try swopping them for energy-efficient bulbs such as LED bulbs. And encourage your employees to turn off lights when they are not in use, as this could save you up to £100 per year.
Cooldown
Lights can be one of the main culprits for driving up your energy bills, and heating comes in a close second. This is why it is wise to make sure your heating system is set around four degrees different from your air conditioning system – so they are not fighting against each other.
Keep it clean
If you have a staff kitchen, it is really important to keep it clean – not just from a hygiene point of view, but to help you save money too. Clean appliances, such as fridges, are much more energy-efficient than dirty ones – and just cleaning the dust off can save you up to a fifth of the energy they normally use.
Make your technology work for you
46% of the electricity used in offices is used outside of standard operating hours – so make sure all computers, printers, and other electrical items are switched off at night. It is also a good idea to unplug any mobile phone chargers when they are not in use as well – it sounds like a silly thing to do, but it can really help to save you money.
Compare business electricity suppliers
Of course, the main way you can reduce your energy outgoings is to make sure you are on the best tariff for your business by comparing business electricity suppliers and swapping to a better tariff. While this sounds like it will be time-consuming, it won’t be if you put it all in the hands of the D-ENERGi team. We do all the hard work comparing the best deals on the market, and finding the best tariff for you.
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14 Jun Energy prices seem to have fluctuated quite a lot recently, with many business owners being frustrated by the changes. Rising electricity and gas prices mean that they have to pay more, while cheap business energy prices make money management unpredictable. This is why it is a good idea to know a little bit more about business gas prices and what affects them.
Supply and Demand
The first factor that affects cheap business gas is the traditional concept of supply and demand. Gas is bought, sold, and then transported in large amounts. How much of a supply of gas there is will affect the price of gas. When there is demand for gas in the UK and it isn’t available, then the price will go up as will the demand. However, when the gas supply in the UK outstrips demand then gas prices may be lowered.
Gas Storage
The UK’s biggest gas storage site was closed down in 2017 which meant that we dropped from having fifteen days’ worth of gas in storage to just four or five days. This has had a huge effect on gas prices especially in 2018 when we suffered from a particularly cold winter. A warning of gas shortages saw the price of gas shoot up to its highest level in more than 10 years. Although the UK government has been urged to take a closer look at its gas storage plans although it believes that a combination of LPG tankers and gas pipelines is more than sufficient.
The Pound
Gas prices are affected by fluctuations in the value of the currency and as we buy a lot of gas from Europe which means that the price that appears on your gas bill will reflect the strength of the pound. In recent years, the strength of the pound has dropped to an all-time low, which has led to rises in gas prices that will have been reflected in your business gas bills.
Wind Power
We create more energy from offshore wind generators in the UK than any other country, with Britain alone accounting for over 40% of the global capacity for wind-generated energy. On less windy days natural gas needs to be diverted to power stations which will result in an increase in prices.
From changes in how we get gas and produce energy to global disruption means that gas prices are always going to fluctuate. Not all of these changes will affect every business but it is always worth keeping an eye on the bigger picture when it comes to cheap business gas and cheap business electricity costs.
Get the best prices and deals on your business gas with D-ENERGi. Speak to our experts directly.
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