You may not give it much thought daily, but your business needs electricity to function. And
just like everything else in business, you need to be smart about your electricity usage to keep costs down.
Electricity is one of the most important factors in any business. It’s an essential resource that powers everything from
your computers to your lights. It’s important to understand how your business electricity works and how it’s priced.
Most businesses in the UK are on standard business electricity tariffs. This means that your electricity price is set by your
energy supplier and can fluctuate depending on the wholesale energy price. However, there are other types of business electricity
tariffs available, such as fixed price business electricity tariffs or variable price plans.
A business electricity or utility management specialist can help you compare tariffs and find the best deal for your business.
They can also help you negotiate a better deal with your current supplier.
What Factors Influence Business Electricity Pricing and Billing?
Electricity is a fundamental part of any business. Without it, you can't keep the lights on or your computers running.
If you don't have the right plan for your business, it's easy to get stuck with higher prices and poor service. The good news is that there are ways to save
money on your electricity and improve your bottom line at the same time:
This section will help you understand the factors that influence business electricity pricing and billing.
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Supply and demand. If a lot of people are using more electricity than usual, the price will increase accordingly. Electricity
prices tend to be highest during peak times because there’s a higher demand, but they can also vary depending on what kind of plan
you have, where you’re located in the country, and even which type of business you have.
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Time of day can affect your bill too! Your utility company may charge different rates for different times of day (called time-differentiated tariffs),
or it may charge one flat rate for 24 hours per day seven days per week until midnight every month (called flat rate). You might also see two types of
rates: fixed (meaning no matter how much power is used) or variable (meaning the more power used in an hour period will cost more).
How Can You Save Money on Business Electricity?
It's not just equipment that can save you money. The other factors you can control are:
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Use the right energy efficient equipment.
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Use the right energy efficient light bulbs in the right places, such as LED or fluorescent lights over incandescent bulbs.
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Use the right energy efficient appliances, like a refrigerator with an Energy Star rating or a laptop computer instead of a desktop model.
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Work with software designed for business use so it doesn't waste electricity by running background tasks unnecessarily (for example,
Microsoft Office Professional Plus saves 15% on your business electricity bill compared to its predecessor).
It's also important to choose building materials carefully when constructing new facilities or renovating existing
ones—building code requirements vary depending on where you're located but they're generally stricter than they were even five years ago!
How Can You Choose the Right Business Electricity Plan?
When you're looking for a new business electricity plan, it's important to consider the following factors:
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Choose a plan with a low fixed rate. Your monthly fixed rate will be the same, regardless of how much power your business uses. If possible,
choose a plan that offers the lowest possible price for this rate and pay attention to how much energy your company consumes over time to help
ensure that you get an accurate quote on what paying off-peak vs peak hours will cost.
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Choose a plan with high levels of transparency. The more transparent your electricity provider is about their terms and conditions, the better
off you'll be when it comes time to pay your bills. This can help mitigate any surprises or issues that come up throughout your contract term.
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Choose flexible contract terms if possible - this way if something changes unexpectedly in terms as far as business needs go
(for example: expansion plans), it won't be too costly or difficult to get out of any contracts at hand once they've expired so long as there are
no penalties involved in doing so (which typically isn't always case).
Businesses of all sizes and across industries have a lot to consider when it comes to choosing the right electricity plan.
But if you take the time to research your options and choose wisely, you can save money while also reducing your carbon footprint.
