Business Energy Contract Types

If you’ve already searched for business energy contracts, you’ll know there are a range of contract types available to choose from. The two contracts you have probably heard about most are fixed-term contracts and flexible-term contracts.

Fixed-term contracts mean you’ll pay the same amount of money [per kWh of energy] for the duration of your contract – this unit price for gas and electricity will never change. These contracts are popular because they enable businesses to better predict their bills and have more control. They’re also the best way to protect against energy price rises, which can push your annual bills up by hundreds of pounds. Flexible-rate contracts are deals where the unit price you pay changes depending on what the market is doing – if the market price rises, so will your unit price. The advantages and disadvantages of these contracts are obvious, and whilst some like taking the gamble that prices can fall, others prefer to not take such a chance.

To switch your business on to a better energy contract, give our switching team a call on #CAMPAIGNBUSINESSSERVICENUMBER#, or leave a few details at the top of this page, and we’ll give you a call back.

When looking for business energy contracts, you’ll notice variations in the rates being offered. These differences are due to a number of reasons, some of which will be applicable to your business.

To ensure you get an accurate quote, you’ll need to give a little information regarding your business’s usage, its size and location. Using this information, the energy supplier will then be able to provide you with accurate business energy contact rates for the energy you use.

When calculating your rates, the energy supplier will look at various factors, including how much energy you require and the main times of the day/night you take energy from the network.

The two biggest influencers on the price you pay are the unit cost and standing charge. The unit cost is the amount you pay, per kWh, for the energy you use, while the standing charge is the daily fee you pay to have the energy delivered and remain connected to the grid.

These factors make working out an average price difficult. But to help you get a rough idea for what you pay for your business’s electricity needs, here are the average electricity rates for businesses with up to 250 employees.

• For micro businesses, the unit cost will be around 13p per kWh, with the standing charge around 27p per day.

• For small businesses, the unit cost falls to around 12p per kWh and the standing charge to 25p per day.

• Finally, for medium-sized businesses, the unit cost will be roughly 11.5p per kWh and the standing charge 22p per day.

Of course, these figures are only estimates – with factors such as the location and size of your business also having an impact.

As with electricity contract rates, average business gas contract rates are difficult to calculate. This is because they are dependent upon a number of factors, again including the size of your business, its location and, of course, how much gas you need and when you use it.

Here is a rough outline of how much you should be paying for your business’s gas needs, whether your venture is classed as a microbusiness or SME.

For microbusinesses, the unit cost per kWh of gas will be around 4.5p per kWh, with the standing charge being between 23p-26p per day.

For larger, but still relatively small businesses, the unit cost falls to around 4p per kWh and the standing charge to between 21p-22p daily.

These slight falls in price continue for medium-sized businesses, with the unit cost estimated at around 3.5p per kWh, and the daily standing charge at 19p.

To help you get the best business energy contract rates, uSwitchforBusiness will make the entire process as smooth and straightforward as possible. Eliminating the need to spend lots of time locating and comparing different deals, we’ll will compile a list of the most suitable, best value energy deals for your business.

If your business is within its energy deal renewal window, you are perfectly placed to find a great new deal and begin saving on your energy bills.

To compare quotes and switch to a better business energy deal, give our commercial energy team a call on #CAMPAIGNBUSINESSSERVICENUMBER#.

• Business energy suppliers
• Business energy consumption
• Harf hourly meters