Business Electricity Prices for Small Businesses
Welcome to the first in a series of practical guides – designed to get you the best energy deal for your small business!
In this series, I will be answering the most pressing questions you have to offer in regards to your business electricity needs. Giving you the tools you seek, to maximise your energy offering, whilst minimising your costs.
John Simons, Deeside Industrial Park
Hi Owen, I am quite concerned about my ever-fluctuating business electricity rates and its impact on my business. How do I fix my business electricity costs, to protect against rising prices?
Hi John, small business electricity prices have increased recently, largely due to government taxes, green taxes, and nasty non-commodity charges. Whilst this can seem out of your control, you can take simple steps to stabilise your business electricity rates.
When looking for an energy deal, it is vitally important to secure a contract that does not include any of these fluctuating ‘non-commodity’ or ‘pass through’ charges. These clauses can leave you open to big changes and big bills, year on year, seemingly out of thin air.
3 year fixed energy deals or longer term deals that are fully-inclusive are the best way to protect yourself against both the taxes, and the non-commodity charges. So keep your eyes peeled for that when browsing the market.
Any reliable energy broker, such as Outsourced Utilities, should always be seeking out fully transparent, inclusive energy contracts, to avoid any unexpected price hikes for you in the future and reduce the impact of your business.
Michael Thomas, Macclesfield
Hi Owen, I run a manufacturing company in the North West. I am concerned that in the past few months, my energy consumption has jumped considerably. Is this normal?
Hi Michael, firstly, you’re not alone! Fluctuating energy usage is normal, and rates can vary massively from building to building. Even moving one door down can change your consumption dramatically!
The average kWh usage for UK businesses is hard to pin down, but Businessenergy.com estimate that the total clocks in between 15,000 and 25,000 kWh per year.
I would highly recommend carrying out a full bill audit for your business, and compare your current usage to your past consumption levels to identify any emerging patterns.
It would also be worthwhile comparing your kWh rate and electricity consumption with businesses in a similar sector to understand whether your unit rate can be protected against increases further down the line.
So if you want a free energy audit, drop me a line on [email protected]
Hi Owen, I’m just starting a new hospitality business in Swindon. Do you have any tips for someone like me who is just starting off?
Congratulations on your new business Eleanor! I know it can be quite intimidating to launch something of your own, but with honesty, integrity and great customer service, the world is your oyster!
However, be warned, as soon as you move to a new location, you’ll have call centres wrangling you round the clock, trying to sell you on non-favourable and expensive energy contracts. Don’t bow to their pressure, and keep an open mind.
The cheapest electricity supplier isn’t necessarily the best either. They’re often littered with hidden charges and non-fixed rates, so even if the cost per kWh is very low, be careful, take your time, read the small print, and don’t get stung but bad contracts and even worse customer service.
Instead of signing the cheapest contract, or giving into the increasing pressure of cold-callers, seek proper advice from a reputable energy brokerage. They will help you achieve a transparent, fixed-price, cost-effective contract with superb customer service – which is what Outsourced Utilities are all about!
Electricity suppliers for business can come in all shapes and sizes, so to get ahead of the pack, take home these three key tips!
- Make sure the contract is transparent.
- Make sure the price is fully-fixed.
- Make sure you’re getting the best deal, not just the cheapest deal.
If you follow these handy hints, you’ll be well on the way to achieving yourself an amazing electrical contract, without any of the nasty add-ons!
Still scratching your head on business electricity? Let’s start the conversation, I’m always happy to help on [email protected]