Comparing Business Energy Deals to Save Money
Your business energy bill is constituted by two different charges, which are the unit cost and the standing charge. Unit cost is the rate that you have to pay for both types of energy you use and it is measured in kWh. This rate is generally fixed, however, your billed amount for energy consumption may vary based on your usage. Standing charge, on the other hand, is a fixed amount charged on daily basis against the maintenance of the national grid and to cover the expense of supplying gas directly to the commercial location.
By comparing quotes for your business energy deals, you can reduce the cost of your energy bills by finding the deals which offer to charge you less amount against unit cost and standing charges. However, the amount you pay every month will also have an impact of extra charges and taxes, which may include delivery and transportation charges imposed by energy suppliers along with value-added tax (VAT) and the Climate Change Levy, implemented by the regulatory bodies.
You will be required to specifically aware of estimated costs and rollover agreements. In case you have not renewed or signed a new contract after the expiration of your old contract, many energy suppliers shift you on an estimated costs, which is a short-term rate and is mostly a lot higher than the regular, in-contract rates, or you will be moved to a rollover agreement that will consider you sign up again with your current supplier for a period of next 12 months over less economical rates.
While it is easy to get out of estimated costs considering it is a short-term rate, by giving a one-month notice, however, if your supplier put you in a rollover agreement, it will be much harder to get out from it. Which is why it is extremely important to be aware of your business energy contract term and sign a new agreement before the expiry of the previous one.
How Business Energy Is Different From Domestic Energy
The energy requirements of a business are usually a lot different when compared to domestic energy. The difference is also reflected in business energy agreements. While it is easy to switch domestic energy suppliers to get the best deal, the case is not the same when it comes to switching business energy suppliers.
Considering every business has its own requirement for gas and electricity, which are determined by the industry they belong to as well as by other elements such as the location of the business and the number of employees, it is generally not possible for energy suppliers to offer similar tariffs that they offer for domestic use.
Instead, every business energy quote is customized to address its individual requirements. Considering that every business has unique requirements for energy, where some businesses by not use gas at all, there is no option for dual fuel. This means that a business is required to get an individual deal for gas and electricity.
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