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Business Energy

Business Electricity Rates

A guide to helping you understand business electricity rates & tariffs

Compare suppliers to find the best business electricity rates

Businesses electricity rates UK wide have risen over the last few years, with the average business electric bill also rising. With many businesses overpaying for expensive business electricity tariffs, now is the ideal time compare business electricity prices. This will ensure your business is signed up to the most competitive business electricity prices. It can pay to compare business electricity prices online, as the savings made will reduce your small business electricity costs.

Why has the average electricity bill risen over the last few years

Business electricity rates per kWh are heavily influenced by supply and demand. Many businesses experience increases in their business electricity prices as a result of increased demand across the UK. For example, if the temperature drops unexpectedly, the demand for electricity will rise rapidly. This puts pressure on suppliers which were not anticipating a high demand on their supply levels.

There are other factors which can have an impact on business electricity tariffs UK wide, such as the cost of production. For example, over the past few years the UK has been hit by strong winds. This has helped wind farms produce more energy at a lower cost. Although, if the levels of wind falls, business electricity costs could rise.

Despite the pressure on business electricity rates, the suppliers are all competing to provide the cheapest business electricity rates UK wide. This helps to keep business electricity prices low, as the suppliers need to remain competitive. However, there are so many business electricity tariffs available that it can be difficult to compare business electricity rates.

What factors influence business electricity prices per kWh?

There are a variety of factors which influence business electric prices UK wide. Including; the size of your premises, how much electricity is consumed, the number of employees and the location of the building.

In general, the electricity bill is split into two separate charges, the business electricity prices per unit and the standing charge. The unit cost relates to the amount your business will pay for each unit used and is measured in kilowatt hours (kWh). The standing charge relates to the fee which the supplier charges each day for your supply. This is used to cover the cost of maintaining the connection and the cost of supplying the electricity directly to you.

Unlike domestic properties, electricity prices for business users are based on the wholesale cost of the supply. This is likely to change on a daily basis, so the prices which the supplier pays will fluctuate each day. The price you pay for the supply will depend on which of the business electricity tariffs you are signed up to.

Switch your business electricity tariff and save money

There are some ways which you can reduce your business electricity prices, such as selecting the most cost-effective payment method. If you are currently paying for your electricity by card or cheque, it may be possible to negotiate better business electricity prices. Simply paying through direct debit could mean you benefit from lower prices. When signing a new contract many of the best business electricity prices are reserved for customers who pay by direct debit. It is also an ideal way to improve cash flow, especially if you operate a small business which is starting out.

If you run a small organisation, your business electricity prices could be reduced by signing up to contracts designed for start-ups. There are suppliers which will offer lower standing charges and shorter contracts to businesses which are in their early days, These are some of the best price business electricity suppliers, so it is worth comparing their tariffs.

What business electricity tariffs are available?

A fixed rate tariff will guarantee that the business electricity prices are fixed for the duration agreed within the contract. Although, some businesses agree to flexible business electricity tariffs which changes according to the wholesale price. These flexible tariffs are usually cheaper than a fixed rate contract, but there is no protection against potential price rises.

There are some factors which will determine which business electricity tariffs are available. For example, the businesses credit score, the type of meter installed and any required installation charges. There are several types of business electricity meter which may be installed, including half-hourly meters, multi-site meters and smart meters.

Business electricity for large corporations

If you run a large business, you are likely to have a half-hourly meter installed. As these are designed for businesses which consume high levels of electricity. The meters are designed to provide a reading every 30 minutes, with business electricity prices then tailored to reflect the usage. If your business operates across multiple sites you will probably have multi-site meters installed. The meters will unite the usage across each site, so that the whole business is signed up to the same tariff. The final type of meter is a smart meter, which are designed to ensure your electricity bills are accurate.

How do I compare business electricity tariffs?

Unlike domestic electricity which is relatively simple to compare online, businesses have bespoke rates with prices based on their individual requirements. To compare business electricity unit prices, it requires quotes to be individually obtained from each supplier. Here at Business Comparison our dedicated business energy team are committed to helping you find the best business electricity tariff. This will save you time and remove the hassle involved in comparing suppliers.

Our team will take care of the hard work and retrieve quotes on your behalf. We will also offer you expert advice to help you compare suppliers and business electricity prices. The service is completely free and there is no obligation to switch to one of the suppliers. Our panel are picked based on their ability to provide cheap business electricity tariffs, excellent customer service and flexible contracts. We have excellent relationships with the ‘Big Six’; British Gas, E. ON, EDF Energy, npower, Scottish Power and SSE. Although, we also partner with a variety of smaller electricity providers.

How to compare business electricity rates

To compare business electricity plans, all we need are a few simple details. These include; your most recent electricity bill, your estimated future usage and your current contract end date. If you are unsure which of the business electricity tariffs you are signed up to, your contract will provide you with the information. Alternatively, a quick call to your supplier will provide you with the details.

This information will provide us with a detailed understanding about your electricity consumption and the price which you currently pay. We will then carry out a detailed business electricity rates comparison, by searching the current business electricity prices and deals. Once we have a variety of quotes from the best suppliers, we will provide you with the information for you to compare. When comparing the quotes, you should consider every factor. For example, the length of the contract and the cost, the benefits offered, and the type of service provided.

Compare online and save money, with no obligation!

If you decide to switch to a new contract, the new supplier will handle every aspect of the switch. The same equipment and electricity lines will be used to provide your energy, so there are no disruptions to your business. All you need to do is pay the final bill which your old supplier send and set up your new payment method.

To find out more about how your business could switch to the cheapest business gas and electricity rates, please contact our team today.

If you need some free advice our business experts would be happy to help

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