Whether you're looking to save money on business energy bills or cut your carbon footprint, there are a number of steps you can take to save money on business energy. Energy is one of the biggest overheads in an office environment. However, simple changes can significantly cut your bill - sometimes by up to 20% - and add to your bottom line. Making your business more energy efficient not only cuts costs, but also reduces carbon emissions, demonstrating to employees and customers that you care about the environment.
Time-of-use tariffs
Time-of-use tariffs are a way to charge consumers for the amount of energy they use during certain periods of the day. These tariffs track wholesaler energy prices and can change every 30 minutes. This is done to ensure that energy prices remain lower during periods of low demand, while encouraging customers to use energy at other times of the day. This helps balance the energy grid and saves customers money.
To benefit from this type of tariff, businesses must use at least 33 kWh of electricity per day, and 145 kWh of gas per day. This translates into an average of 4,397 kWh per month. Additionally, businesses must pay a Climate Change Levy on each kWh unit they use. This is part of the government's effort to promote energy efficiency and reduce gas emissions.
A time-of-use tariff is an alternative to a fixed price energy plan. It regulates the electricity demand according to the availability of renewable energy. The price per unit of electricity is cheaper during times of low demand, and higher during peak hours. However, this kind of tariff can be difficult to implement and has its limitations.
Another type of time-of-use tariff is known as a rollover tariff. It is cheaper than a standard business energy tariff, but it is also harder to change supplier. Rollover contracts must last for a minimum of 12 months. This type of tariff is not ideal for micro businesses.
Time-of-use tariffs are the best way for businesses to save money. They can help them control their usage during off-peak times, such as the night. It can also help businesses reduce their electricity bills. The savings can be significant. However, they should keep in mind that many energy suppliers don't offer time-of-use tariffs. Many still charge their customers a flat rate for their electricity.
Fixed-term tariffs
Fixed-term business energy tariffs provide fixed rates for a period of one to four years. This means that the unit cost and standing charges are the same throughout the term, while bills may vary, depending on usage. As the name suggests, these tariffs are great for budgeting. However, you must ensure that the tariff is right for your business.
Usually, a business will enter into a contract that lasts up to a year. These contracts are usually more expensive than average business energy tariffs and can be difficult to exit - especially for micro businesses. If you've already signed a contract and want to change suppliers, you must make sure that the contract contains an end date and does not require any penalties for early termination. Otherwise, your unit rates could go up.
There are two main types of business energy tariffs: fixed and variable. Both types of contracts offer a fixed price for their duration, but the variable rate fluctuates and you might end up paying more than you anticipated. For these reasons, many businesses choose fixed-term business energy tariffs. The best tariff for your business will depend on your usage.
If your business uses a lot of electricity and gas, you may wish to look into dual fuel deals. By combining both types of energy, you can save on both business and domestic energy bills. And, if you're with the same supplier, you may be able to negotiate a better rate. Another good thing about dual fuel contracts is that they don't come with a cooling-off period.
Fixed-term business energy tariffs are ideal for businesses because they help businesses budget more effectively. Fixed rates tend to be more affordable than variable rates, so you can save a lot on your energy bills. In addition to fixed prices, fixed-term contracts also give businesses peace of mind because you can budget accordingly for your monthly bills.
Direct debit
Direct debit is one of the easiest ways to pay your business energy bills. It can save you up to 7% on your energy bills and is backed by the Direct Debit Guarantee, making it a safe and secure way to pay your bill. You can set the date of your Direct Debit and the amount to be deducted, and it usually takes ten days for it to go live. Direct debit is also the least expensive option for most companies, so it is well worth considering.
Before setting up a direct debit, you should determine how much energy you use. Many energy firms estimate your annual energy use and then divide it by 12 or four to get your direct debit amount. Make sure the direct debit amount is proportionate to your energy usage so that you don't overpay. If you see that your direct debit amount is higher than you expected, contact your supplier and ask for an explanation.
The government regulator, Ofgem, has proposed changes to direct debit rules. This is to protect consumers and ensure that their credit balances are protected if a company goes bust. The regulator is also concerned that direct debits are being used beyond what is required, putting customers at risk of large credit balances and debt.
In May, Ofgem launched a review into the issue after MP Kwasi Kwarteng complained that some suppliers were increasing direct debits by more than 100%.
Multi-site contracts
Choosing the right multi-site contract for your business is essential if you want to get the best deal. This type of contract allows you to have one renewal date and has more benefits, including lower business electricity rates. It can save you time and hassle because you only have to renew the contract once. Moreover, multi-site contracts can help you manage your switching process more easily.
Business energy contracts are important for large businesses as they usually consume large amounts of energy. Therefore, it is essential to manage them well. For instance, multi-site businesses may have separate energy meters at each site and individual agreements with each supplier. While this might seem like an obvious solution, switching contracts can help you avoid inflated rates and save money.
Multi-site contracts are a good option for large businesses that have several locations. Multi-site meters are an energy-efficient way to save money and time. The meter will take automatic readings every half an hour and will send the data directly to your energy supplier. These multi-site contracts may not be suitable for your business, however, as they can be expensive.
A multi-site contract can reduce the cost of energy by up to 50%. This type of contract can also reduce the number of energy meters that you need to manage. Moreover, you can consolidate all your business energy needs into one package with a single supplier. A multi-site contract can save you time and money because you only need to renew the contract once.
Multi-site contracts offer the flexibility to switch between energy suppliers and manage energy bills from multiple locations with ease. It can also allow you to negotiate a better rate and manage your energy usage more effectively. Multi-site contracts also have one renewal date, which means you are less likely to be forced to switch to an expensive rollover tariff.
