For a small business, it’s crucial to manage costs. Therefore, if your electricity bills are high, then you need to compare the prices at Utility Bidder for business electricity offered by various suppliers.
The good news is that it is easy to make significant savings by reducing your electricity bills. Unfortunately, there are many businesses out there that are still paying high prices for their electricity and gas. This article is a guide to help you choose the right electricity price for your business.
Calculating electricity prices for small businesses
It’s necessary for you to understand how the electricity bills for your business are calculated. When you understand how this is done, you can look for the right deal on the market. There are several factors that are considered when calculating business electricity bills.
For example, they consider the energy consumption which is the amount of electricity that you have utilized within a specific period. The calculation also considers the unit rate which is the price of electricity that you agree with the electricity supplier to pay and it can be per kilowatt-hour.
It’s also worth noting that businesses can pay different rates, but this may depend on the geographical area. Therefore, the distribution network operator for each region can charge different rates.
There is also a standing charge that refers to a fixed daily amount that you have to pay the electricity supplier. Remember that this charge includes the cost of maintenance and transporting electricity to your business. Standing charges tend to vary, though this depends on the electricity supplier.
You should also expect to have a period of billing that can either be monthly or quarterly. This period of billing can depend on the contract terms that you agree with the supplier.
The electricity usage by businesses can be determined by several factors. These include the industry, size of your business, and working environment. Therefore, all these factors can affect the business electricity rates.
A lot of electricity that most retail stores use targets the comfort of the customers. Ideally, the shops focus on providing lighting and warmth. There is also a lot of energy that some shops use to offer the right heating.
Today, many retailers tend to use electric heating. As a result, this can increase costs when you compare to other industries. Also, there are back-office IT costs and cooling costs when it comes to open fridges. Many retailers usually do their businesses during peak hours and this is the period when you have higher unit rates.
The hospitality industry uses more energy than any other industry. For instance, some restaurants can use ovens, microwaves, and many others for more than 10 hours each day. This tends to increase electricity bills for your business.
The good thing is that electricity suppliers usually provide good prices for restaurants. They may even receive discounts if your restaurant decides to use electricity outside peak hours. This can be a great thing for your business because you can reduce the electricity bills.