Comparing the prices of business electricity is crucial for any company who wants to boost their bottom line and reduce their expenditures. However, switching commercial plans can be more difficult than switching domestic plans. You can secure great business electricity deals by using the services of a specialist company like British Business Energy.
How can you compare business electricity tariffs
There are a few points to remember when comparing electricity rates for business. There are three major kinds of tariffs such as daily standing charge three-rate meter, two-rate meter. This is a good choice for businesses that operate on nights and weekends. These tariffs are also the most affordable because they have fixed rates. The fixed rate tariffs also let businesses plan their costs.
Once you’ve settled on a plan, ensure that you’ve compared it against other plans from the same provider. You can switch providers to get cheaper tariffs. Additionally, you should review your energy usage information. You can use online tools such as AquaSwitch to compare different business electricity rates. This will help you find out which company can offer you the best deal. You should also know the difference between a stand cost and the unit rate. The unit rate is a rate you pay for electricity consumed by your business. This is typically expressed in cents per Kilowatt-hour.
Cost of switching to a fixed-rate plan
There are a number of options for those who are currently using a variable tariff for business electricity and want to switch to a fixed-rate plan in the winter. First you can take advantage of the new scheme offered by the government, which applies to all non-domestic electricity customers. It will save you money in the short term and protect you from price hikes in the near future.
You can also speak with your provider to determine the cost of switching to fixed rate tariffs. Some companies are still calculating cost for this winter’s rates, but it is estimated that prices will rise. The final numbers are expected to be announced in May.
Impact of VAT on electricity rates for businesses
To help small and mid-sized businesses as well as consumers To help small and medium-sized businesses, the government has been under pressure by the market to cut business energy tariffs. One solution is to reduce VAT and other costs that aren’t directly linked to the wholesale price for energy. It could also provide grants for business owners in times of need. The idea is similar to the Covid scheme.
The decision by the government to not reduce VAT will also impact the price of electricity as well as gas. A typical household’s electricity bills will decrease by EUR57 in the winter of next year. In October 2022, an additional reduction to the Public Service Obligation (PSO) tax will also be implemented. This means that the average household bill in the UK will decrease by EUR52.