Peak demand periods in the UK can mean high energy prices, making it difficult for small businesses to stay afloat. This is why it’s vital for all businesses, no matter the size, to learn how to save money on business energy costs in the UK. Fortunately, Business Energy UK offers tips for businesses that want to save money on their energy bills.
Variable rate and fixed rate tariffs
When it comes to business energy tariffs, there are two main types: fixed rate and variable rate. Using a fixed rate allows you to budget your costs in advance. You can also estimate your future energy usage using your past usage, which can help you choose a cheaper deal. In addition, a fixed rate usually has lower prices than a variable rate, which makes it a good choice if you need to save money over time. However, if you need to switch plans early, you may need to pay an early termination fee.
If you’re a business owner, switching business energy tariffs may be a good idea. If you’re unhappy with the current deal, you can always try switching to a better one. If you have a fixed rate contract, you may be locked into a long-term contract with a higher rate than you can afford. If you’re interested in switching business energy tariffs, you can do this with little effort. Just be sure to read the terms of your contract thoroughly to avoid being surprised by early cancellation fees.
Fixed rate business energy tariffs are generally cheaper than variable rate tariffs. However, the cost per unit can vary from month to month. This is because fixed rate contracts are highly competitive. Many business energy switching deals will come with fixed rates. Some fixed deals can freeze unit costs for three years, and some won’t charge early exit fees if you decide to switch providers.
A fixed rate tariff is cheaper in the long term because it’s less volatile, and the price per kilowatt is fixed. On the other hand, a variable tariff can increase or decrease in price depending on the wholesale price. This can be difficult if you’re looking to keep a tight budget, so it’s recommended to stick with a fixed rate deal.
Variable rate business energy tariffs are linked to market activity, so they’re more expensive. However, because the unit rate can fluctuate, it’s harder to estimate your usage. Another type of fixed rate business energy tariff is the deemed rate contract, which suppliers arrange for customers without a formal contract.
Climate change levy
The Climate Change Levy is a tax that the government is adding to business energy bills. It is paid on non-renewable energy and is applicable to businesses of all sizes. It was introduced in 2001 to encourage energy efficiency and reduce greenhouse emissions. It is collected by energy suppliers and is effectively a tax on energy use.
The tax can be avoided by adopting energy efficiency measures in your business. This will lower your energy bill and help the environment too. You must register for the Climate Change Levy before your energy supplier can bill you. The energy supplier will calculate the levy, which will be itemised on your business energy bill. The levy is then passed on to HM Revenue and Customs. The rates for the CCL are the same for all energy companies, but they are reviewed at the beginning of every financial year.
Multi-site metering is a great solution for businesses with multiple locations. These businesses have a variety of energy needs and a multi-site meter will help them manage their contracts and save money. These meters can also help businesses avoid paying for expensive tariffs that do not match the needs of their locations.
By consolidating your energy contracts, you can save money by avoiding multiple renewal dates. In addition to this, you can save time by using one supplier for multiple sites. It is also beneficial if you can get a dual-fuel plan. These plans combine gas and electricity. Energy suppliers offer discounts to customers who buy both. By consolidating your contracts, you will get a single bill and contract from one supplier.
Multi-site metering for Business EnergyUK can help you cut your energy costs by more than half compared to traditional metering. While multi-site metering makes the billing process simpler, it can also lead to inconsistencies in your energy bills. In addition, it can be difficult to secure multiple energy contracts for your business. With this in mind, it’s a good idea to take the time to compare prices so that you can get the best deal.
Multi-site metering allows you to track your energy use at multiple sites. By choosing the right tariff for your business, you’ll be able to save money on your energy bills. If you’re unsure whether or not you’re eligible for multi-site metering, you should consult with your energy provider. Be sure to give them your MPAN number, which you can find on your current electricity bill.
Multi-site metering is an essential tool for businesses with multiple locations. Businesses that are energy-intensive can need multiple meters for gas and electricity across different sites. They may also need to sign several energy contracts with different suppliers, with multiple end dates. This can take up valuable time and resources. Bionic’s tech-enabled experts can simplify the process.
Another type of metering for businesses is automatic half-hourly metering. This type of meter is similar to home smart meters, but takes measurements every half-hour. This enables more accurate billing. These meters are mandatory for large businesses using 100 kilowatts or more every 30 minutes.
Getting a better deal
Getting a better deal on your energy supply is easier than you might think. The quickest way to do so is by comparing the rates of different suppliers. All it takes is a few clicks to find a cheaper energy contract for your business. In addition to comparing prices, many TPIs also offer additional benefits, such as help with contract procurement and ongoing development plans.
One of the key points to consider when changing business energy suppliers is the’renewal window’. Typically, this window is around one to six months before the existing contract expires. This is an ideal time to switch energy suppliers, as you could save money by switching early.
Another important thing to consider when choosing a new supplier is their per kWh tariff. These can vary considerably, so make sure to shop around. Some providers will offer lower per kWh rates, but will charge higher standing charges. These are not the best deals for businesses. If you want to save money on business energy, you should switch to a new supplier.
It is essential to note that the government has been under pressure to introduce more measures to help businesses save money on energy. However, it has not yet lowered the VAT or other charges for energy, although there is a strong appetite for such measures on social media. However, the only real protection against rising prices and out of contract rates is to lock in a new deal.
There are several benefits of switching to a new deal with Business Energy UK. Many suppliers allow you to transfer your existing contract. You can also avoid the ‘deemed tariff’ which is often more expensive. Another important benefit is that you can avoid paying penalty fees when you cancel your existing contract early. However, even if you are happy with your current provider, switching to a new provider may be cheaper than the one you have now.