Business Electricity Prices

According to Ofgem, the UK government regulator for energy, UK SME businesses could potentially save on average £350 off their business electricity supply by switching to a cheaper tariff either with the same supplier or to a cheap business electricity provider. Customers can compare commercial electricity suppliers tailored to their requirements. We will send on quotations based on business electricity tariff comparisons and all available UK business electricity suppliers. Our service is impartial which ensures you are getting the most competitive energy prices for your site.

We also offer a DIY option for customers more inclined to undertake matters in hand via our online price comparison service. www.expertsinenergy.co.uk. This is an Ofgem accredited site powered by GoCompare.com owned Energylinx.co.uk There are as of June 2019 over 40 gas and electricity suppliers in the UK. Some of these suppliers are gas/electricity only providers, some supply both. It is safe to assume that the Big 6 energy suppliers would supply both electricity and gas.

With business energy costs one of the biggest outgoings for business after lease/mortgage and wage costs, it makes sense to be aware of your options and keep comparing to check the latest business electricity deals. The current wholesale cost for electricity is approximately £47/mWh, the current government agreed on a strike price of £96/mWh to enable the construction of Hinckley Point C. We are therefore certain that energy prices will not be heading on a downward trend in the coming future.

How does a business protect itself from the oncoming price increases?

There are many options available to businesses to cut energy costs. In terms of tariffs, energy suppliers offer both fixed-rate and flexible tariffs for electricity and gas. Fixed-rate tariffs have historically been the norm as they provide certainty and protect businesses from fluctuating market prices. We would also recommend implementing energy efficiency measures as the adage goes “if you don’t measure it, you can’t control it” There are some companies that offer different types of finance packages to help businesses implement energy-efficient methodologies. We have in the past mentioned a couple of companies such as ReEnergise Finance and Noesis however we expect businesses to apply some due diligence before undertaking any program with these companies.

We have been sometimes asked how long should we fix for and we generally state it is always best to procure contracts on a medium to long term basis. This ensures security for both the business and the supplier. Depending on an individual’s appetite for risk, you could purchase a contract for 5 years or more however due to the current economic climate we would not advocate this arrangement and would be inclined to let businesses make an informed choice based on market forecasts, prices offered and the suppliers’ terms/conditions.

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