Business Electricity, Q&A

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

QUESTION #1

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

QUESTION #2

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  owen.davies@outsourcedutilities.co.uk and I would be more than happy to help you! And if you still have questions around this, it would be my pleasure to fill in the blanks!

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