Business Commercial Electricity Prices and Cost per kwh
Ever wondered what the prices per kWh might be if you are thinking of switching your business energy contract to another provider ? Well here is the information you need to make an informed decision.
In general (as you would expect) the prices for business commercial premises and cost per kwh are generally higher than if you are a domestic customer trying to get the best tariff for your home. Unfortunately that’s just the way it is but what prices can you expect for electricity and gas supplies for your business ? Here’s a run down of what will affect your kwh cost apart from the supplier you are with but it also depends heavily on your annual energy consumption and where your business is based in the UK :
The costs do vary greatly by :
- The type of business you own
- How much energy you use in a year (the greater volume the better the price)
- If you are a small business or large corporation
- If you have both electricity and gas under a dual fuel contract
- Your current energy provider
- The region your business is within the UK because prices vary around the country
So what kind of price levels should you be looking at ? Although some of the price comparison websites online state you could be getting a contract as low as 2p per kwh for gas and 4p per kwh for electricity this is rarely the case and only the largest of businesses will be able to negotiate low tariffs such as these.
In general for a small or medium sized business it’s going to be anywhere between 7p and 21p per kwh for electricity (because all businesses have an electric supply) and between 2p and 6p for gas.
How do I find the rates and cost for my business ?
The easiest method is to get online quotes and you can get an instant 60 second quote here from British Gas who guarantee to beat your current electric quote by at least 10% – they really want your business so check them out – even if it’s just to rule them out – for a minute of your time you may save your business thousands in energy costs over the next year.
All the other providers except for Southern Electric also have online quoting systems so as long as you have your meter number and your business postcode you can get quotes right now and see the types and range of tariffs they have to offer.
Changing your supplier
You need to be able to change your contract and the terms and conditions contained within it will say when you are able to do this. Check your contract and see if you qualify (although there is no harm in getting quotes today). For micro business owners the rules have slightly changed with a new ofgem rule for new contracts taken out after 18th January 2010 which means your provider must inform you your contract is coming to an end 60 to 120 days before it does and then provide you at least 30 days to switch or renew.
This change came about because of what is know as roll over contracts where providers would let your existing contract expire then put you on a new one without notice and normally at higher rates. So this practice is slowly changing.
If you get your cost per kwh and are not happy with the rates you have been provided with then it’s always worth calling the provider and seeing if you can negotiate the prices down further. Certainly you will have success if you are moving from your existing supplier to a new one as the old “new customers only” discounts generally apply.
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