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Guide to comparing Business Electricity Prices per kWh online
Electricity is an important utility for any business, powering essential equipment from computers to printers. However, besides reliability, the cost of electricity is a crucial factor for businesses. Finding a supplier that provides a constant supply of energy at competitive rates is essential for maintaining a healthy bottom line. In this guide, we'll explore the process of comparing business electricity prices per kWh to ensure your business gets the best possible deal.
Why Compare Business Energy?
Running a business involves juggling various expenses, and electricity ranks high on the list. To ensure your business remains cost-effective, it's crucial to find a supplier that offers both reliability and competitive rates. However, comparing business energy is more complex than securing a domestic deal. Corporate energy deals are tailored to business needs, considering factors like usage patterns, multiple meters, or half-hourly charges for larger companies.
Understanding Common Business Electricity Tariffs
Business electricity deals come in various options to suit the diverse needs and budgets of UK companies. Bespoke contracts, often offered by energy suppliers, take into account specific details about your business and average electricity usage. To determine the best deal, comparing quotes from different suppliers is essential. Reputable companies specialising in comparing business electricity deals can simplify this process, doing the hard work for you and providing expert advice.
Common Types of Business Electricity Contracts:
- Fixed-Rate Tariffs:
- Fixed-rate tariffs involve agreeing in advance with the supplier on fixed unit rates for the entire contract period. While these contracts typically offer decent rates, it's advisable to double-check prices using a comparison site to ensure you're getting the best deal.
- Deemed Rate Tariffs:
- Deemed rate tariffs operate on a 28-day rolling basis and are typically employed when there's a disagreement on a new contract before the existing one concludes. These contracts are often associated with higher rates, so it's important to exercise caution when considering them.
- Rolling Contracts:
- Rolling contracts involve businesses being tied into a one-year deal with higher rates. There may be opportunities for negotiation, particularly on a blend-and-extend basis, allowing businesses to secure a lower rate.
How Are Commercial Electricity Rates Calculated?
Calculating monthly business energy rates involves considering variables like unit cost (price per kWh) and the standing charge (the daily charge for national grid maintenance). These charges significantly influence your monthly electricity expenses. While average figures can provide a rough guide, actual costs vary based on business size:
| Type of Business | Unit Charge (per kWh) | Standing Charge (per day) |
|---|---|---|
| Microbusinesses | 14.4p to 15.9p | 23p to 29p |
| Small Businesses | 14.3p to 15.1p | 23p to 28p |
| Medium Businesses | 14.3p to 14.7p | 23p to 27p |
How to Compare Business Electricity Deals?
- Renewal Window
- The Renewal Window, usually six months before your current contract ends, is crucial. Suppliers often send non-competitive renewal offers, making it essential to compare with other suppliers for the best deal.
- Comparing Business Electricity Deals:
- To compare business electricity deals effectively, start by approaching multiple suppliers for quotes. Once you have the quotes, carefully select a tariff that aligns with your business needs. After deciding, proceed to apply for the chosen contract with the new supplier. Don't forget to inform your current supplier about the switch. Finally, patiently wait for the new deal to take effect.
It's Not Just About Price
While cost savings are a significant benefit of switching suppliers, it's essential to consider other factors like special promotions, customer service, reliability, and flexibility. Comparing business electricity deals goes beyond mere price – it's about finding the supplier that best aligns with your business needs and values.
In conclusion, staying on top of your business energy spend by comparing the best deals can significantly reduce monthly expenses, freeing up resources for business growth. Utilize a reliable comparison service to ease the process and switch to a new, cost-effective agreement that suits your business requirements.
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