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Why Compare Business Energy Tariffs

In today’s rapidly evolving business world, securing affordable energy is one of many challenges. Business electricity prices remain high. Britain’s heavy reliance on gas continues to place strain on gas supplies and prices.

Your current business electricity supplier may not be giving you the best deal possible. To lower your gas and business electricity bills it’s vital to understand what the market is offering.

Energy price comparisons have helped businesses all over the UK find more favourable gas and business electricity rates. This article will discuss why it is beneficial to compare prices for your business.

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Types of business energy bills

Compare Business Gas And Energy Prices

The commercial energy market is competitive. To gain your account, there may be several suppliers prepared to offer you commercial gas and business electricity cheaper than your current supplier. Comparing gas and business electricity prices is the first step to accessing more affordable gas and business electricity rates.

A review of your gas and business electricity supply arrangements can help you to make a well-informed decision to renew with, or switch, your supplier.

At Business Energy Comparison we aim to help you save money on your business utilities by doing the comparisons for you.

Why Switch Gas And Business Electricity Suppliers With Business Energy Comparison?

You know there are strong incentives to compare business electricity prices and target the best gas deals. But there are multiple suppliers, different business electricity tariffs, and a score of other variables to consider. So, comparing business electricity prices and gas rates can be time-consuming and complex.

This is where the specialist team at Business Energy Comparison can ease your burden. We do the legwork and compare business electricity prices and gas deals across the market. Ultimately we want to present you with the best energy deal possible.

We have the experience, contacts, tools, and expertise to identify the cheapest commercial gas and business electricity prices available.

We specialise in providing micro-enterprises, SMEs, and large corporations with a comprehensive comparison of gas and business electricity rates. If there is a better business energy contract for your company and you chose to switch suppliers, we handle the entire process for you.

Our services can potentially save your company up to 45% on your energy bills.

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What Types Of Energy Tariffs Are Available?

The most common gas and business electricity tariffs are:

  • Fixed Rate– A Fixed Rate Tariff sets your utility rate upfront for a period of 1-4 years. You are protected against price increases but lack the flexibility to take advantage of price reductions.
  • Variable Tariff – Here you pay based on the prevailing rates in the energy market. So, if the price of electricity drops you benefit, and if the price rises you can expect higher bills.
  • Pass-Through Tariff – A pass-through tariff includes a fixed component relating to the wholesale energy costs, and a variable component relating to various floating elements
  • Green Energy Tariff – If you’re looking for a blend of eco-friendly solutions and cheaper electricity you may opt for a green tariff.
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What Costs Make Up Your Business Energy Bill?

The energy market is one of the largest and most complex in the world, with a host of costs, taxes, and levies affecting prices.

  • Standing charge– A flat daily charge irrespective of your energy consumption. Your business electricity supplier typically calculates the standing charge based on the cost of delivering energy directly to your premises. Their costs toward maintaining the national grid are also factored in.
  • Unit Rate– Unit Rate refers to the charge that covers your gas or electricity usage measured in kilowatt-hours (kWh). Business energy suppliers incur a wholesale cost to acquire the energy and pass it on to consumers via the unit rate.
  • Taxes and Levies – Taxes and levies include VAT, Climate Change Levy, the Renewables Obligation, and other surcharges designed to promote the transition to alternative energy sources.

Why Are Energy Prices Rising?

Gas and electricity prices have soared in recent years. Although we are currently in a period of slightly lower costs, the outlook remains volatile. Rising UK energy prices have been caused by:

Global Events

War, flooding, drought and pandemics are prime examples.

Lack of Storage

Britain is very reliant on gas, but lacks large stockpiling facilities so is less able to mitigate price volatility.

re you check with your supplier which is the day, and which is night (off-peak).

It’s important to provide the correct readings – mixing them up could prove to be a very costly mistake!

Weak Pound

The UK imports much of its gas from Europe, so a weak Pound-Euro exchange rate increases domestic prices.

Increased Demand

A period of rapidly growing demand for gas and business electricity is currently happening.

Crisis Events

Crisis events like fires at key facilities and cables falling over also cause price spikes.

Suppliers don’t typically pass on lower gas and business electricity rates to consumers until there is a sustained period of cost stability.

Most forecasts indicate that UK gas and business electricity prices aren’t expected to drop to materially lower levels in the next period. In the current environment, securing a fixed price until 2024 is something many businesses are weighing.

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Average Business Gas and Electricity Prices

Given all the factors which influence utility prices and their continual fluctuation, it’s difficult to quote definitive figures. We provide an indication of average business electricity and gas prices below:

Electricity

  • Micro Business -£4,836 (based on annual usage of 10,000 kWh)
  • Small Business – £8,565 (based on annual usage of 20,000 kWh)
  • Medium Business – £14,214 (based on annual usage of 40,000 kWh)
  • Large Business – £20,359 (based on annual usage of 55,000 kWh)

Gas

  • Micro Business – £2,130 (based on annual usage of 10,000kWh)
  • Small Business – £3,436 (based on annual usage of 22,500kWh)
  • Medium Business – £8,350 (based on annual usage of 47,500kWh)
  • Large Business – £7,645 (based on annual usage of 65,000kWh)
Design Elements

What Is A Half Hourly Meter?

Half-hourly meters are programmed to send readings to the supplier every half an hour to support accurate billings. If a business has a maximum electricity demand of 100kW or greater in any thirty-minute period, it is legally required to have a half-hourly meter.

Half-hourly meters eliminate manual meter readings. They improve accuracy and convenience and provide better data on usage patterns.

Businesses at levels between 70 kW to 100 kW can opt to install an HH meter. Our professionals can advise you further on whether a half-hourly meter is suitable for you.

What Are Out of Contract and Deemed Rates?

Out-of-contract rates are paid by customers who don’t have a contract in place. The rates are more expensive as suppliers prefer customers on a contract because of the certainty.

Deemed Rates are the expensive out-of-contract rates a business is charged when they haven’t agreed on a contract to govern their gas and electricity supply. They may be charged out of contract because their contract has lapsed, or because they’ve moved business premises.

If you’re on a fixed-rate business electricity contract, start the review and renewal process well within the renewal window to avoid these higher costs.

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Is electricity cheaper at night

The Difference Between Business and Household Energy

Commercial energy is contracted differently from household gas and electricity. The unit rate for business is usually cheaper because suppliers benefit more from bulk buying agreements when purchasing business electricity.

However, businesses are affected by more levies and taxes. Commercial users can pay up to 20% VAT on both electricity and gas, whereas households pay 5%. The Climate Change Levy (CCL) is another charge specific to commercial users.

How To Switch Business Energy Suppliers And Get The Best Deal

Comparing business electricity prices is the first step to possibly switching suppliers. Your location, your industry, and your energy usage all factor into the gas and business electricity comparison that finds the best deal for you.

Business energy experts like our brokers and consultants will guide you through the process. To choose the best gas and business electricity supplier we work with you in considering all of the following:

  • Unit rate
  • Standing charge
  • Tariff type (Fixed or variable or blended)
  • Contract length
  • Energy mix generating the supply (coal, nuclear, renewable)
  • Supplier’s reputation- customer service, track record, business values
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Compare Business Electricity Prices And Gas Quotes

Whether you’re an SME or a large corporate with multi-site needs, Business Energy Comparison can connect you to the right energy supplier and help tailor an optimal package.

Business electricity contracts vary widely. That’s why it’s crucial to compare business electricity rates and gas deals by getting multiple quotes across the market. We have working relationships with over 27 suppliers, including big names and specialists offering tailored niche offerings.

Start the process of securing better gas and business electricity rates by initiating an invaluable comparison. Get potentially game-changing supplier quotes and expert guidance from the Business Energy Comparison team today.

COMPARE PRICES NOW

Frequently Asked Questions

How much more expensive are deemed rates compared to a contract rate?

Businesses on deemed rates can potentially pay a standing charge up to four times higher than a contract rate, and a unit rate three times higher than on contract.

Will my electricity supply be disrupted if I change my current electricity supplier?

If professionally handled there should be minimal disruption. Energy comparison specialists can help consumers find the cheapest business electricity tariff and help switch business electricity suppliers without material disruption to your electricity supply.