Small Business Energy

When comparing small business energy plans, it is important to know what your own business is actually classed as in terms of size. The smallest category of business is referred to as a microbusiness. To be considered a microbusiness, you must have a maximum of 9 employees.

The common definition of a small and medium-sized enterprises (SME’s) is that of 250 employees or less. Because of such classifications, it can be difficult to suggest typical business energy rates. That’s because of the mega difference in size and energy usage.

On top of what size your business is classed as, there are other considerations that an energy supplier must take into account before giving you a quote. This includes what type of business you operate, where you are located, and when you require your electricity and gas.

Small business energy providers are now able to offer a variety of contracts and tariffs that specifically cater to the needs of small UK businesses.

If your business employs less than 250 people, you will likely be classed as a small business by UK energy providers. As already highlighted, average business gas and electricity rates are difficult to calculate because of the many different things that can influence the price you will pay.

However, to help you get a better understanding of the kind of charges you should expect, we can provide the following estimates.

Small business energy gas rates will likely be around 4p per kWh per unit of gas used, whilst you can be expecting to pay roughly 21p per day in standing charge.

Whilst these numbers will vary slightly once you have provided more details about your business and its requirements, they can serve as a good marker in terms of what you need to be looking for.

As with gas rates, small business energy electricity rates will depend on a variety of factors. Again, to be first classed as an SME, you must first prove that you have less than 250 employees.

Once this has been confirmed, you will then need to provide details including your location and how much energy you have used annually in previous years. Once the energy supplier has this information, they are then able to calculate and provide a much more accurate quote.

Electricity rates are calculated in predominantly the same way as gas rates are, there being a unit price and a daily standing charge. In terms of unit price per kWh of electricity, small businesses in the UK can expect to be pay around 12.5p per unit of energy used. Meanwhile, the daily standing charge for small business is roughly 25p for the duration of the contract.

As shown, a micro business and a small business are classed as being different because of the number of employees they have. However, in terms of the actual contracts offered to both types of business, there are also differences that you should be aware of. For example, unlike small businesses, microbusinesses can terminate their energy contract at any time – making it much easier to switch energy suppliers and get cheaper, more favourable deals. Small businesses are only able to switch energy suppliers once they have entered their end of contract window – often up to six months before your actual contract ends.

If you run your business from your home and wish to enter a commercial business energy deal, there are certain criteria that you must first meet. One of these is that roughly 50% of your total energy consumption is for business needs.

Whilst this may seem a lot, even the use of lighting and heating in your home for business purposes will contribute to this figure, making it much easier to achieve than you may perhaps first think.

To find the best energy deal for your business, whether you work from home or another business premises, give our switching team a call now on #CAMPAIGNBUSINESSSERVICENUMBER#.

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