Office Gas and Electricity
Running a business is hard work, and it’s essential to make sure that you are getting the best deals on everything possible. This includes your office gas and Electricity. By comparing gas and electricity suppliers, you can ensure that you get the best rates for your business. In this blog post, we will discuss the benefits of switching providers and how. We will also provide a list of recommended suppliers for you to compare. If you would like to read more information or learn more about the pricing of business energy, you can do so here .
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How to Reduce Your Business’s Electricity Costs
Reducing electricity costs for your business in 2023 can contribute to both cost savings and environmental sustainability. Here are some effective strategies:
Energy-efficient Lighting
Energy Audits
Smart Thermostats
Solar Panels
Energy-Efficient Appliances
Seal Leaks
Occupancy Sensors
Power Management
Time-of-Use Plans
Employee Training
Remote Work
Upgrade HVAC Systems
Energy-Efficient Building Design
Negotiate Energy Rates
Monitoring and Control Systems
Employee Engagement
Will Energy Prices Go Down?
Energy prices are influenced by supply and demand dynamics. If there is a surplus of energy supply and reduced demand, prices may decrease. Conversely, if demand surpasses supply, prices tend to rise.
Government interventions, such as subsidies for renewable energy or taxes on fossil fuels, can impact energy prices. Changes in these policies can either push prices up or down.
Energy prices are often linked to international markets. Events like geopolitical tensions or fluctuations in oil prices can have a direct impact on energy costs.
The transition to more sustainable and cost-effective energy sources, like solar and wind power, can lead to lower energy prices over time as technology advances and economies of scale are realised.
Improvements in energy efficiency can reduce consumption, leading to lower bills. Businesses and individuals adopting energy-efficient practices can contribute to this trend.
Events like hurricanes or extreme weather conditions can disrupt energy supply and infrastructure, potentially causing short-term price increases.
In the long run, the global shift towards cleaner and more sustainable energy sources may result in more stable and possibly lower energy prices.
Greater awareness and actions to conserve energy can drive down demand and lower prices.
The Four Main Factors Influencing Business Energy Plans
Several different factors can influence your business energy plans, but the four most critical that will apply to all businesses are energy consumption and unit rate; standing charges; VAT; and any discounts that have been applied to the price. Understanding each of these may help you understand how your business is paying for energy.
Critically, this can also help you ensure that your business is paying the right price for its business energy. After all, energy companies are still just businesses like yours. There’s every chance they could make a mistake, so we recommend you check every energy bill to be sure.
1. Energy Consumption and Unit Rate
Energy consumption and unit rate are often directly linked together to calculate your business energy plans. Your energy consumption will impact the final price you have to pay over a set period for energy.
However, while using more energy will increase the price, you may get offered a more favourable unit if your energy consumption is higher. For example, some companies offer two different unit rates; the first X kWh is charged at a certain rate, and anything above this minimum is charged at a lower rate.
As such, this is well worth considering for your business; you could potentially save money with higher energy plans. This will also play a substantial role in how the energy provider calculates your business energy plan.
2. Standing Charges
If your business has taken on a new contract, you will have to pay a standing charge; this is a set fee typically and covers factors such as the energy transport and maintenance for the meter. This standing charge will be added to the cost for your energy consumption and unit rate when the time comes to pay your business energy bill.
The price you pay for your standing charge will usually vary depending on your location; rural businesses may have to pay more, for example, as fewer other businesses share the cost of the infrastructure and the like. Nevertheless, your standing charge will never change while you remain on the same contract with your energy provider.
Unfortunately, businesses need to pay taxes on their energy bills. As standard, VAT is charged at 20% (quite a substantial cost for some businesses), although you may be able to cut this.
Some businesses pay as little as 5% VAT; some examples of businesses that can use this rule include charities and non-profits and some healthcare facilities. As such, it may be worth checking whether your business could save money on VAT too.
A saving of up to 15% in VAT for your energy bills (and other aspects of your business) could be quite substantial, after all, so it’s worth checking whether your firm is eligible. And if not, there’s nothing to lose by enquiring regardless.
4. Discounts
Who doesn’t love a discount? This is something that many energy companies know well, and to this end, when working out your business energy plan, you may be offered discounts on the calculated price. These discounts are usually offered to draw you in and encourage you to purchase with the chosen team.
There’s a certain appeal that comes with saving money. If you were to compare two plans of different prices, but both ended up at the same price after discounts, you’d likely want to choose the discounted plan. After all, there can be the assumption that you’re getting more for your money when the plan is discounted compared to the normally cheaper plan.
However, we recommend a touch of caution here. Rushing into any business energy policy to take advantage of discounts without considering the other costs could result in you paying more. Moreover, many contracts will offer a discount for part of the contract, but not in its entirety; as such, the discount may only be a temporary matter.
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Find out more about business energy here. Other useful links about Business Energy
Green Initiatives For Your Business
Underfloor Heating
GB Energy
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