Business Electricity Comparison

Types of Business Electricity Tariffs

• • Fixed-rate tariff: A fixed-rate business electricity deal is a favoured choice among business owners for managing their business energy costs. When choosing this type of electricity tariff, businesses agree to pay a consistent unit rate and a daily standing charge for a set number of years. This arrangement can remain in place for a duration of up to five years, subject to the terms offered by the business electricity supplier.
  Choosing a fixed-rate business electricity contract offers businesses the advantage of predictable billing, allowing for more effective budget planning. By securing your business electricity rates, businesses are protected against any potential hikes in energy prices per kWh throughout the term of the agreement.
• • Variable rate tariff: Choosing a variable rate tariff for your business's electricity means the amount you pay for each unit of business electricity (unit charge) can go up or down based on the business energy market prices. This kind of plan can be good for businesses that are looking to save money when business electricity prices drop.
  However, Since the unit rate changes with the market, there's also a chance that prices could increase. This means you might end up paying more at times. If your business is okay with prices changing and can handle the ups and downs, then a variable tariff could work well. It's all about whether the business is willing to take the chance on business electricity prices per kWh going up with the hope they might also go down.
• • Rollover tariff: When a business forgets to renew its business electricity contract, it can end up on something called a rollover contract automatically. This contract lasts for a fixed period, usually a year, and the business has to stick to it legally. The problem with rollover contracts is that they often have higher business electricity prices compared to what businesses could get with a new electricity contract. This means businesses might end up paying more than they need to. Also, being on a rollover contract makes it hard for businesses to switch to better business electricity deals elsewhere.
• • Green electricity tariff: For Zero Carbon mission and environmental safety, many businesses are aiming to be more environmentally friendly by choosing business electricity plans that come from renewable sources like the sun and wind. These plans are called green electricity tariffs, and they're getting helpful with the companies that want to reduce their impact on the environment. Many business electricity suppliers are now offering these green electricity tariffs to businesses. This means that a small business organisation or a large business has more options to choose from when it comes to picking an eco-friendly business electricity deal per kWh. By opting for green business electricity tariffs businesses get to do their part for the planet while also having more control over their business energy choices.
• • Pass-through tariff: Understanding a pass-through electricity tariff can be a bit more complex compared to other types of business electricity tariffs. Essentially, it splits your business electricity bill into two main components: fixed wholesale rates and additional rates covering things like National Grid levies and network costs. The fixed wholesale rates remain constant over a specific period, offering some stability in pricing. However, the additional rates, which include charges related to National Grid and network expenses, can fluctuate multiple times within a year. These tariffs are typically most suitable for businesses that actively manage their business electricity consumption and closely monitor energy market changes. If your business is proactive in controlling its energy usage and staying informed about tariff adjustments, a pass-through tariff could provide the flexibility and transparency needed to make informed decisions and potentially optimize costs over time.
• • Deemed rate tariff: When a business hasn't signed up for a specific business electricity contract, they're automatically put on what's called a deemed rate tariff. These business electricity tariffs are known for being the priciest options available in the market.
  Essentially, if a business has never agreed to a particular electricity contract, the business energy supplier will assign them to this default tariff. Unfortunately, deemed rate tariffs usually come with higher electricity rates per kWh compared to negotiated contracts. It's a situation where businesses end up paying more simply because they haven't chosen a specific business electricity contract. So, it's in the best interest of businesses to actively seek out and agree to a suitable electricity contract to avoid these costly deemed rate tariffs.
• • Flexible tariff: For large business electricity consumption organizations, buying all their electricity supply upfront can be a strategic move. By doing so, these businesses gain access to wholesale market rates, which can help bypass some of the additional costs associated with retailers.
  Purchasing business electricity in bulk upfront allows these organizations to negotiate directly with wholesale electricity suppliers. This direct engagement often results in lower prices per unit of electricity compared to what retailers might offer. Additionally, by buying in advance, these organizations can hedge against potential price increases in the future, providing more stability and predictability in their energy costs.
  Overall, opting to purchase electricity supply in advance can be an advantageous strategy for large consumption organizations looking to manage costs effectively and optimize their energy procurement process.

Top Business Electricity Suppliers to Compare