All businesses, both small and large, face a number of overheads each year. What these amount to will vary between companies but it is vital that they are kept as low as possible in order to give businesses the highest profit levels available. The cost of energy used to power offices and workshops is a common overhead and is one which can be reduced fairly easily. Business energy products can help companies to cut the cost of this expense, giving them greater profit margins.
The reason for this is that businesses will have different energy requirements than households, meaning that commercial and domestic energy prices will vary. Business energy services will be designed to cater to the larger needs of businesses and will help prices remain affordable and reasonable.
One way in which this is achieved is through offering a combined service. This is where the heating and power supply of a business are combined into a single product. This is known as CHP (Combined Heat and Power) and offers businesses a number of advantages - both economical and environmental. According to Business Link, using this service can reduce both energy bills and carbon emissions by 30%, helping businesses to become more environmentally friendly whilst also giving them access to potential savings.
Other reductions in business electricity prices can also be obtained simply from changing providers. According to British Gas Business, their business customers can save as much as 10% when transferring their service to them, helping businesses to achieve the best deal.
Businesses who have recently entered new premises may find that their electricity is being provided by the previous suppliers. If this is the case, then the business will be charged on a tariff known as the 'deemed rate'. This is a high-rate tariff which will lead to high energy bills for the business.
Business electricity suppliers will therefore offer a range of products for different types and sizes of business. Larger businesses could also benefit from changing providers and will have to have a half-hourly meter fitted. Business Electricity Prices.org.uk states that these meters are an obligatory requirement for any business with an annual electricity bill in excess of £30,000.
The decision to have these meters fitted as a mandatory prerequisite is an example of the carbon reduction commitment scheme which states these automatic readers must be in operation if a business has an energy consumption level higher than 100kwh for a day in any three month period.
These meters are therefore designed to help companies look at the amount of business energy they consume every day. Identifying patterns and interpreting this data can therefore lead to improvements being made within the company, helping to reduce the consumption levels as well as the energy bills.
The tariff which companies are on for their business energy supply can therefore be adapted in order to match the business' consumption levels, ensuring that companies continue to pay the best price for them