Business Electricity Prices
Electric power supplied to an establishment of employment is known as business electricity. It differs from personal electricity in that commercial electricity tariffs are devised to correspond to the specific energy requirements of commercial users. There are three types of commercial electricity tariffs available in the United Kingdom, these are Fixed Rate Tariff (RPT), Tiered Rate System (TRS), and Volumetric Switching System (VSS). The Fixed Rate Tariff system, and especially the Small Enterprise (SEO) tariff is considered to be one of the more stable forms of UK electricity, however, many small businesses have been forced to look elsewhere for short-term deals. To compensate for the instability of the Fixed Rate Tariff commercial suppliers have developed a variety of tariff plans which offer flexible and cost-effective electricity supplies for small to medium-sized businesses.
The fixed-rate tariffs remain in place until a certain date
this date is known as a ‘taper date’. At the taper date, energy providers will reduce their rates on all surplus electricity they have purchased from suppliers until the end of the contract period. When looking to purchase additional electricity from suppliers, it is worth checking how much of your monthly contract energy costs can be met by a contract energy supplier. Some contracts will allow you to draw down the remaining amount of energy on your contract at the end of your contract period, whilst others will offer you a discount when you buy additional energy from them. The price of additional electricity will depend on your current usage, both monthly and annual, and any type of fuel the generator uses to generate the power.
Several alternative sources of energy
are also available to help lower your costs, these include green energy certificates and gas and climate change certificates. If you wish to continue to receive gas and climate change certificates after your contract ends you may still be eligible to get them, check with your supplier. Many suppliers will give you the option of switching tariff structures later on, particularly from the current sector where they are dominant. However, if you want to switch to another supplier and you know they will be able to support you during the transition, check their prices to see how much they would charge for the privilege. Changing tariff structures is a time-consuming process and may not always be possible, especially if you are switching from a private supplier who will have different rates for their products.
A further way to control your costs
is to make some changes to how you shop for services. A good example is to make sure you shop around between energy companies before committing to use one. Comparing the prices you have been quoted and comparing the prices of similar services and products is a great way to find out which supplier will give you the best deal. If you are currently only using one supplier for your business electricity tariffs, take the opportunity to switch companies and save yourself money, and to give your customers peace of mind. Switching can often reduce your bill to some extent as well.
One of the most important decisions
you need to make when considering the role of energy in your business is whether to switch domestic energy suppliers or remain with your current supplier. Ofgem has developed a strategy for competitive energy markets, where local suppliers compete against each other for new business. It means that not only can you get a better deal when it comes to your tariffs, but that competition between suppliers increases, and you can benefit from greater choice.
You can also use a wholesale reducer
to help you compare suppliers and find out which supplier offers the best deals. Using a wholesale electricity prices comparison website will allow you to choose suppliers in your area that are offering the deals that you want, allowing you to quickly compare prices and choose the supplier that best suits your needs. By choosing a supplier that you can easily contact and can easily manage, you will give your business electricity prices the boost they need to become more successful. Choosing a supplier that offers a variety of products at a price that you can easily afford and is constantly improving its pricing on demand, you can ensure your business remains at the forefront of the market and remains competitive.