Businesses who haven’t switched their energy provider for a few years could be overpaying on their electricity bills by hundreds of pounds a year. Fortunately, it’s easy to compare small business electricity prices and find out how much you could save.
Here at Business Electricity Prices, we’ve built strong relationships with energy suppliers to ensure small businesses have access easy access to the best electricity tariffs.
What Is A Micro-Business?
For all intents and purposes, a micro-business is defined by the EU as one having less than ten employees or a turnover less than £1.8 million (actually defined as €2million). This definition would cover most of the 4.4 million businesses operating in the UK.
Ofgem made changes in the contract terms that energy suppliers provide for these companies so that the renewal and switching of contracts are now made clearer. The energy company contracted must communicate that a contract is coming up for renewal.
Before this change, the time for switching or negotiating a new contract may have been hidden in lengthy terms and conditions. The contract would renew automatically for another year under more expensive trading terms and was impossible to switch. The change made is for new contracts and is not retrospective.
What Types of Micro Business Tariffs are Available?
The small business electricity market is incredibly competitive, so you have access to a range of pricing options to keep your costs low. Most energy contracts will last for one, two, or three years.
When comparing business electricity, you can choose from the following tariff types:
Fixed Rate Tariff
With a fixed rate tariff, the unit price of your electricity will remain the same throughout your contract. This option will offer your business certainty and can make your energy bills easier to manage.
Variable Rate Tariff
Under a variable rate tariff, your unit rates can change during the duration of your contract. This means you will benefit from any drop in your supplier’s unit rate. However, if the unit rate goes up, your electricity prices will also increase.
No Standing Charge Tariff
A standing charge is a fixed daily cost paid to your supplier for no matter how much electricity you have used. As the name suggests, with a no standing charge tariff, you will not pay this fee. This can mean that your unit rate is higher than other standard fixed rate tariffs.
Green Energy Tariff
If your business is looking for eco-friendly energy, you can choose a green energy tariff. Your electricity will come from renewable sources, allowing your business to limit its impact on the environment.
How to find the cheapest small business electricity prices
Energy companies rely on inertia much like insurance companies. There is often little reward for customer loyalty with new customers receiving the best prices in the business energy market.
Business who either fail to switch or renegotiate before the end of their contract will be placed on a rollover contract. These are often some of the most expensive rates offered by suppliers and could have a serious impact on the cost of your electricity bills.
The main options available for small businesses are:
- Renew with your current provider (often at much higher rates)
- Compare more than 50 electricity suppliers yourself to find the best deal
- Use an energy comparison expert to find the best available electricity prices
The first two require your own time and effort and you may miss out on some deals depending on the service you use. Simply contacting your current provider means missing out on a significant part of the market place.
By comparing energy suppliers with Business Electricity Prices, you will have instant access to the best tariff prices from the ‘big six’ suppliers to smaller independent energy providers.
Additional Discounts and Savings Tips
Further savings can be made by paying your bills by monthly direct debit. Normally, quotes include this discount so if you select to pay manually, an additional 2%-5% will be added to your invoice.
A dual fuel tariff could incur a small reduction but it’s prudent to get separate fuel quotes as well and calculate the totals for each.
Choosing the right tariff for you small or micro business
When comparing energy suppliers with Business Electricity Prices, the only information you need to provide is your business address and your contact details.
You will then be provided with the best electricity quotes from the widest possible range of business electricity suppliers. All that is left for you to do is to choose the tariff that suits your business needs.
Depending on what is happening with wholesale prices it can be difficult to decide how long to commit to a contract for. Our advice is probably to go for a one-year contract length, although most providers can offer up to a three-year contract with fixed pricing.
A Climate Change Levy, or CCL, is payable by all companies in the UK. The tax is automatically added by the supplier to the bill before VAT and is approximately 5%.
Why switch with Business Electricity Prices?
At Business Electricity Prices, our aim is to make it as simple as possible for small businesses to find the best energy tariffs and complete their switch.
When you switch energy supplier with us, you will be provided with a dedicated account manager to handle the process of moving you to your new supplier, allowing you to get back to running your business.
We will even be in touch with you towards the end of your new contract to ensure you can remain on the best deal available and never be left overpaying for the electricity you use.
Small & Micro-Business Electricity FAQs
Do I need to move to a new supplier to get a better deal?
When using an energy comparison service, many people believe they will need to change their supplier to get a better deal.
Yet when comparing small business electricity prices with us, you are likely to find a better deal from your current supplier than the one in your renewal letter.
You are under no obligation to change your supplier and many businesses have made savings by switching to a new deal with their current supplier through our comparison service.
Will my business energy supply be affected when switching?
As with residential switches, your electricity supply will not be affected when you switch energy supplier.
You can arrange for your new contract to start as soon as your current contract expires, and you will continue to receive your electricity supply as normal.
The only difference you should notice is lower bills at the end of each month.
What affects the cost of my business electricity?
There are several factors which can affect the cost of your business electricity. These include:
- The size of your business
- The location of your business
- Your business type
- Your energy consumption levels
What is the average cost of small business electricity?
As explained above, the cost of your business electricity will be dependent on a number of factors.
However, the latest average rates are 16.74p per kWh for micro businesses and 14.83p per kWh for small businesses.
As expected, these average costs will be by no means the cheapest available and you should compare prices to ensure you are on the best deal for your business.