A business electricity tariff is an individual type of commercial electricity deal designed especially for business use. Although commercial electricity is sometimes supplied through the very same wires as residential electricity, and in some instances, even the same energy providers, there are several points of difference between commercial electricity and personal electricity, mainly:
Turn everything off and reduce electricity consumption
Unit rate: This is the amount you pay per unit of electricity that you use. In order to receive the best rates, you should always negotiate with your suppliers about the unit rate, so that you get the best deal possible. The majority of suppliers will charge a standard unit rate regardless of the use, but some suppliers will charge differently, taking into account things such as the size of the business, the peak traffic, and whether it is being used for offices or shop. As there are many factors taken into account, a good energy supplier will be able to offer you competitive commercial electricity tariffs.
Energy efficiency rating: In addition to quoting your business electricity on a regular basis, you should also ask your supplier about its energy efficiency rating. A high EGI rating can indicate to potential customers that your energy efficiency standards are high. Some energy companies will advertise their EGI rating online, so it is important to ask for this rating when quoting. If energy companies do not mention their EGI rating online, you should contact your local energy regulator and ask them. They may also be able to advise you about which suppliers have a high EGI rating, and which ones do not. Ask your supplier if they can help you find energy companies with excellent energy efficiency ratings.
Standby power meter: Another key aspect of business electricity is to ask your supplier about their ‘standby’ powers, also known as reserve powers. These powers can include emergency electric, gas, steam, geothermal and air conditioning. A standby power meter will let you know how much energy your company has stored in reserve for future requirements. It can also indicate if any of these powers are being utilized, and how much electricity is still available from the mains, in the event of a blackout.
Long-term electricity efficient solutions
Renewable sources: A major issue facing businesses today is the rising cost of gas and electricity, and there is a concerted effort to change this by encouraging investment in renewable sources of energy. One effective way to save money on business electricity prices is to switch to a ‘green’ supplier. Many energy companies now supply green energy certificates to those businesses that prove they are taking steps to reduce their carbon emissions. This can often save you a considerable amount of money on your gas and electricity bills.
The final element of your business electricity plan is your demand charges. These are used to calculate the amount of energy you need from your suppliers, and will be based on estimated demand. It can sometimes be difficult to work out the exact amount of demand you have, and using the information provided by your energy company, you may have a better idea. However, the majority of suppliers charge according to an average daily rate, which is why it is important to carefully consider the effects of any anticipated increases in your daily usage. Using one of the tools available online to help you work out how much kit you use and the estimated monthly energy requirements can help you work out your best solution to save money on your energy costs.