Compare Small Business Energy Prices
Currently, there are over six million small businesses in the United Kingdom. Whilst they have many similarities in that their energy demand is similar and their revenue is in the same range, there are many other factors influencing the bills and numerous methods that successful businesses use to reduce. For example, a small business with low demand and efficient devices may pay £1,500 annually, whilst a small business with more employees and a more extensive property may pay as much as £6,000. As a result, it is essential to compare small business energy prices.
Compare Small Business Energy Prices
What is Classified as a Small Business?
The majority of energy supplier companies classify small businesses as a company with between 100 to 500 employees. Alternatively, you may fall into this category if your annual electricity consumption is between 15,000 to 30,000 kWh or gas consumption is around 25,000 kWh. In total, this adds up to more than the average energy consumption of a microbusiness but is less than a large business. Therefore is in its category.
What Energy Tariffs Are suitable for a Small Business?
Usually, small businesses are offered two main energy tariffs. The primary energy tariff is the fixed rate tariff, ideal for businesses that are not yet on their feet and can still benefit from price security. Because the unit rate is the same for the entire contract, businesses can estimate how much their energy bills will be because if they maintain similar habits each month, the prices will be based on the exact figure. This allows for peace of mind, as you can plan how much money to set aside without any nasty surprises.
On the other hand, some small businesses may wish to have a variable tariff. Essentially, the unit price of electricity and gas is based on the wholesale market and fluctuates depending on this factor. As a result, prices will decrease when the value drops and vice versa. When the market value is decreased, small businesses will benefit because their energy bills will be less, and hence they can save money accordingly. Conversely, if they are willing to take this risk, they will pay more in the months that the market value increases. For some businesses that do not need a guaranteed unit rate, this tariff is more advantageous for them, as there is a chance that they will save money.
The Smart Export Guarantee (SEG) initiative started in 2020; it is a way for small businesses to make money when generating renewable energy. The subsidy is rewarded when a business makes their sustainable energy, helping both the UK government with their plan to become net-zero and assuring customers that their energy is not detrimental to the environment. It is a type of export tariff whereby businesses that have installed solar panels, wind turbines or hydroelectric power can sell their excess energy to the National Grid so that it is not wasted. The SEG is a cost-efficient way to sell this energy whilst buying energy from the supplier.
What Do Energy Prices Depend On?
On average, electricity costs £0.21 per kWh and gas costs £0.04p per kWh. For a small business each year, this adds up to £2,400 and £2,500, respectively. However, this is an average and varies significantly on multiple factors; these figures are illustrated based on energy consumption; therefore, energy demand is the most significant factor that the businesses bills depend on.
The best way to decrease energy demand is through smart meters and thermostats because this is a straightforward way to identify when electricity is used excessively, so preventative measures can be designed to combat this. By installing a smart meter, departments that leave the lights on for too long or do not switch off electronic devices can be identified. They are often unaware of doing this and, therefore, actively remember decreasing demand. Similarly, smart thermostats automatically keep the temperature the same throughout the day so that the environment is always optimal without using up too much gas.
Another way small business energy prices vary is the type of energy used. For example, oil and gas prices are higher than renewable energy, including solar power from photovoltaic cells or wind power from turbines. By switching to energy suppliers that offer these renewable alternatives, you can save money and help care for the environment. Furthermore, as mentioned above, the SEG tariff can aid your business in making extra revenue.
Compare Small Business Energy Prices – To Conclude
Overall, every small business pays different prices for its energy bills. However, using the most suitable tariffs and being efficient can keep these expenses to a minimum.
Find out more about switching business energy providers here.
Other useful links about Business Energy
Crown Gas and Power
Ebico Energy
Ecotricity
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