What exactly is a business energy tariff?
A business energy tariff is a form of commercial energy deal designed specifically for business usage. In some instances, business energy is often provided through the very same cables as residential electricity and, in other instances, by the very same energy providers. Regardless of whether or not your business uses commercial electricity, it’s worth understanding the factors that go into setting up this form of commercial electricity.
Businesses can either purchase their own tariffs from a professional supplier or they can take advantage of alternative tariffs from suppliers of ‘green’ energy (also sometimes called ‘e-energy’). Both options are valid; however, purchasing from a specialist supplier can often be more cost effective and some suppliers will also offer their clients the opportunity to develop their own alternative energy schemes. This is usually done via a discount energy scheme. Green energy tariffs can also be quite attractive to small businesses, particularly those that generate their own electricity. These tend to be designed to be of a more flexible kind than normal commercial tariffs and can either reward renewable energy usage or offer a credit to customers who do make a green energy investment.
The basic structure of a business gas and electricity tariff is established on a number of different factors
Firstly, the level of usage will be taken into account – some tariffs will offer a discount if a percentage of your daily use is below a particular threshold. Some tariffs will also apply to specific types of usage, such as on a hot day. Electricity suppliers generally set their prices according to the level of demand for their products, so you’ll generally find that companies that generate and use a lot of electricity will pay more than ones that don’t.
As mentioned above, different types of usage will also affect how much you’ll pay. For instance, some suppliers may be able to offer further discounts for businesses that use certain sources of energy in larger quantities, while others may not. In general, the bigger the percentage of usage you’re responsible for, the more your monthly bill could go up. Different suppliers will also offer different incentives to encourage businesses to use more renewable energy. Examples of these might include tax breaks, financial rewards, reduced bills, or certificates for expenditure reductions. There are also some countries where the government offers subsidies for companies that adopt energy efficiency and use conservation techniques, so it’s worth doing some research in order to determine which countries offer the most generous schemes.
good business energy deal by signing a contract with your chosen supplier
In most cases, the contract rates that you’ll be quoted are fixed – there’s no fluctuation. It’s best to get a few quotations before you decide on a supplier, since you can then choose the one that provides you with the most competitive price. In some instances, where you need a specific amount of equipment or supplies, you may be able to reduce your contract rate – this is especially true if you’re opting for a long-term agreement. Make sure that you consider your own needs and budget before signing any agreements, and don’t be tempted to change your mind after the initial round of negotiations has taken place. The last thing you want is to have to go through a whole power programme just because you changed your mind!
In addition to contract rates, you can also choose between different types of energy systems. While some suppliers offer a flexible option that changes according to your needs each year, others choose a fixed rate that’s set for the whole term. If you’re looking for a more ‘green’ option, you might prefer to consider solar power or wind energy options – they’re the most environmentally friendly forms of alternative energy, but they also require a lot of investment in equipment and resources. It’s important to take the time to think about which kind of energy system would best suit your company, its location, its industry, its staff, and the products and services it offers – and to find the supplier who can provide it. Choose a supplier who will work with you to develop an energy solution that meets your business needs and provides the environment with the cleanest and most sustainable fuel sources possible.