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How to Compare Energy Rates for Your Business

Which Factors are Influenced by Business Energy Rates?

Business energy rates are any type of fee that a company has to pay for the electricity that it uses. In this section, we will be looking at the factors that a business’s energy rates are influenced by.

There are many ways energy rates are influenced. These include:

Average Cost per Kilowatt Hour (kWh)The amount of money a business pays per kilowatt hour (kWh) is determined by the amount of power they use, and their rate plan.

Cost per 1000 kWh. If you are a large user then there are discounts to be had based on usage

Base Supply Charge (BSC). Like most commodities, electricity is traded on a wholesale market.

Most of this trading is done in a forwards market, with generators and suppliers entering into contracts with each other for every half hour of every day; sometimes years in advance

Transmission and Distribution Costs. The cost of transporting the electricity to the meter: approx. 23% of the total cost.

The second largest element is the cost of transportation of the electricity across both the transmission network and the local distribution network.

Your Business sector. Unfortunately many business sectors were hit hard with extra energy tariff addons, none more than the HOSPITALITY SECTOR, to the degree that many suppliers simply stopped accepting new business for these sectors. Luckily we have agreements in place with a handful of suppliers that are actually targeting these businesses and offering some excellent price tariffs

How to Find the Best Business energy Rate for Your Needs?

Nearly every business has a high amount of energy needs, a good idea might be to discuss service contracts with a Business Utility Broker. These contracts often include fixed rates for a year and can be up to 5 years, which can help you save money because of decreased volatility in the market. In addition, they often include incentives if you meet certain goals such as reducing emissions or going green.

How to Stay Accountable for Electricity Savings in Your Business?

The need for energy efficiency is an ongoing one. With the cost of power going up and the world’s population continuing to grow, it’s more important than ever to make sure that you are using as little electricity as possible.

With this in mind, it’s important for businesses to find ways to stay accountable and decrease their electricity usage. There are a few ways businesses can do this:

1) Track your electricity usage – Use a Smart Meter that will break down exactly how much electricity you’re using by day, week, month, or year. This way you can identify when you are using the most energy and maybe look at ways to reduce usage during these times.

2) Find energy efficient alternatives to regular items within your business such as:

-LED strip lighting vs Fluorescent strip lighting. Not only can LED strip lights last up to 5 times longer, they are also around 30% cheaper to run than Florescent, in a bar/public house for example this could equate to huge savings over the year on your energy bills.

-Thermostatic Radiator Valves. A TRV is a valve that regulates the flow of water into the radiator, adjusting the temperature to avoid the overheating which is common with manual valves. using the above example again during the winter some bars and pubs with living accommodation above could be heating the WHOLE BUILDING overnight as apposed to just the living quarters

Conclusion

With the ever increasing rates of business electricity and gas there is never a better time to try and make some small changes that could very well add up to massive savings year after year.

Remembering your energy contract end dates is imperative to keeping your business energy bills low, once the contract ends you are immediately switched to a much more expensive variable rate tariff that could add thousands to your bills. Luckily if you are a customer with FUTURE BUSINESS UTILITIES we look after all of that for you with our Customer Relationship Service (CRS) which will start to track the renewal prices available from 6 months to go on your current contract and ensure that your next deal is ready to go!

If your energy deals are expiring within the next 6 months then take this opportunity to COMPARE YOUR BUSINESS ENERGY TARIFFS NOW

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