Business Energy Bills Explained – Part 1
Do you spend much time analyzing your business energy bills? Perhaps taking time to compare business electricity rates of worrying about when to switch energy supplier? No, we didn’t think so… After all, running a successful and profitable business means a million and one things fighting for priority, and this probably comes rather low down the list.
But what if we told you that by taking a few easy steps could save your business hundreds (or even thousands) of pounds per year. A little effort on your behalf could see you making the switch to an energy supplier that provides you with far more competitive business gas and electricity tariffs, and finding the cheapest energy suppliers in the UK with very little effort on your behalf.
Read on to discover how you can discover the different elements that make up your bill, and how you can easily work out if you’re overpaying. And in addition to that, did you know that there are extra factors that your bill doesn’t explain, but that affect the price you pay?
The Unit Rate And The Standing Charge
These are the two most important (and easy to spot) items on your business energy electricity or gas bill.
• The unit rate – this is how much you pay for every kilowatt hour (kWh) of either gas or electricity you use.
• The standing charge – is the daily rate charged.
Most business electricity tariffs have a standing charge. However, this might not be the case with all gas tariffs. Simple so far, yes…?
However, just because you have the lowest unit rate it doesn’t mean that you’ve secured the best deal for your energy. The crunch is how much energy you actually use. So, if your business is a heavy user then it would be advantageous to have a low unit rate as well as the standing charge. But if you’re a light user, then a higher unit rate with zero standing charge would see you better off.
Did you know that in June 2012, the average business electricity unit rate was 8.75. per kWh, and the average standing charge was 21.29p per day. As you can see from these figures, if your business is a relatively light user, then securing a tariff with no standing charge would be highly advantageous.
There are other important aspects that go into making up a business energy bill. Sadly all suppliers are not equal, and it can be a challenge to work out average electricity prices and which supplier is giving the best deal. Understanding your bill is the first crucial step to getting the cheapest business electricity and gas deals possible.
In part 2 (link) of this article we go into further details that will help you get the very best price possible.