If you’re not sure whether or not you’re running a microbusiness, there are two definitions you’ll need to consider, one of which directly relates to your energy usage and whether you’ll be eligible for micro business energy contracts for your gas and electricity.
For financial purposes, a micro business is defined by the European Commission (EC) as one that has fewer than ten employees and a turnover or balance sheet total of less than €2 million.
But to qualify for a microbusiness energy contract, you must either meet the above criteria, or make sure your business uses no more than 293,000 kWh of gas a year, or no more than 100,000 kWh of electricity a year.
As for the cost of your energy bills, Ofgem estimates that if your business uses 293,000 kWh of gas or 100,000 kWh of electricity, it should pay between £10,000 and £12,000 a year for each fuel, excluding VAT and the Climate Change Levy.
Are you eligible for a business energy contract in your home?
If you run your business from home, you might be happy that your current domestic energy deal is meeting the needs of both your household and business energy use. But it’s worth considering a business energy deal as you could find that micro business energy prices are cheaper than your domestic rates.
To qualify for a commercial energy tariff, you’ll need to prove you are running a business from home and using a significant portion – usually around 50% – of the gas and electricity you use each day to run your business.
This might sound like a lot, but just using enough lighting, heating and electricity to keep your business running every day will most likely to be enough to make you eligible.
When calculating how much energy you use for business purposes, remember to deduct any appliances that would be on regardless of your business being there, such as fridges, freezers, ovens and washing machines.
If you need further advice on finding the best deal on your business’s energy contract, speak to one of our business savings experts today on #CAMPAIGNBUSINESSSERVICENUMBER#. Or leave your details here, and we’ll give you a call back.