What is Average Business Energy Usage?
While most companies use somewhere in the range of 15,000 to 25,000 kWh of energy every year, many companies fall outside of this scope due to the different sizes of a company or different ways in which energy is used. If you would like to read more information or learn more about the pricing of business energy, you can do so here.
The most straightforward way to scale is by saying that the bigger a business is, the greater its energy on average.
So, How do you Figure out Average Business Energy Usage?
Things are a lot more complex than this, though. Whilst two companies can do almost the same business tasks, their energy demands could still differ massively if they operate from buildings or premises with different efficiency systems installed for things like energy, lighting and heating. This can have a significant impact on how much energy is being used to complete the same task.
Instead of by nature or nurture, how employees behave will significantly impact most companies’ energy usage. Some businesses make sure to do all they can to encourage energy-saving habits, whilst others prefer to leave the pressure off in the hope that employees concentrate elsewhere and thrive in other areas instead.
Two main figures are used to work out what exactly a business will pay for its energy needs. These are the unit cost and the standing charge. Unit cost, measured in kilowatt-hours (kWh), is a set amount that must be paid for each unit of electricity or gas used. Standing charge is a flat rate paid daily that covers the cost of getting energy to any necessary properties and must always be paid whether or not there is any electricity or gas used on that day.
Companies looking to cut the costs of their business energy bills will use comparisons that preferably offer a lower unit rate and lower standing charge than the one their supplier is currently providing them. However, in many cases, significant savings will be made if just one of these costs can be reduced.
Do Fixed or Variable Energy Deals Affect Average Business Energy Usage?
Businesses also often give a lot of thought to the distinction between variable rate energy deals and fixed-rate energy deals. With fixed-rate deals, a company’s locked-in price may be slightly higher than the number they’d initially be shown with a variable rate deal. However, it is usually the safer option in the long term as if the market price of energy goes up, then that can cause a significant rise in costs across the board as the inevitable price hike hits unprepared companies hard.
Fixed-rate deals also have the added advantage of making budgeting easier in the long-term usually. Market energy prices can be affected by everything from the weather to geopolitics. So there’s no way of telling what changes will occur down the road, and only the wealthiest largest of companies can say they’ll be unaffected by a steep rise in the cost of the energy that their operations run on.
What Should you Consider When Looking at Average Energy Usage?
Using comparison tools that show the average energy spend of other companies based on different categories is usually the first go-to when companies are looking to cut energy-related expenditure. Rather than comparing with every other business out there, which is unlikely to give a number particularly relevant to a random one of the millions of businesses in the UK, the numbers need to be whittled down by a few filters, preferably.
The most obvious of these is size. There’s no need to compare your home sewing business to an industrial behemoth. Another is location, since some places may have slightly higher rates on average than others or require more energy in general due to local geography or climate. Don’t expect your heating requirements in Edinburgh to be on par with a similar-sized business in Gibraltar! The last of the most critical factors to filter by is business type.
It might seem easy to assume that businesses of the same size have similar energy requirements regardless of their operations, but this can vary wildly between industries. The average energy cost per year between even small businesses like a restaurant and a newsagent is in the thousands of pounds. If a company has never switched business electricity before, there’s no chance they’ll be on their supplier’s, or anyone else’s, most competitive rate by default.
That’s why it’s essential to make your first comparison and be equipped with the tools to know what numbers you’re looking for in every case.
Business energy provider comparisons provide the best short-term solution. Still, it’s an overall reduction of usage at home that provides by far the most impactful way to cut business energy bills and environmental impact. Tools like Uswitch’s energy deals that compare business energy prices and even add an extra discount on the side can often start cutting costs by the next billing cycle. Looking years down the line, creating an environment that encourages efficient energy and minimal wastage can cut even further thousands of annual energy bills.
Average energy usage bills vary massively depending on the business, with micro businesses sometimes paying more than 2p over what a medium business pays per kWh annually, which can add up over a year. However, the key thing is to be taking that price in the right direction, which starts by working out the categories that your business sits in and using a business energy comparison tool to make sure you’re at the most competitive rate.
You can read more about average business energy consumption here.
Other useful links about Business Energy
EDF Business Energy
Deemed Rate Energy Contracts
What is an Energy Performance Certificate
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Ally Cox is a dedicated Copywriter and Blogger for CompareYourBusinessCosts.co.uk. In under two years, the platform achieved the esteemed accolade of ‘Website of the Year’. Since its award-winning debut, Ally has been instrumental in fostering organic growth for the website, expanding its offerings to encompass comparisons across a diverse range of over 20 products to help serve all your business needs.