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Three factors that increase the cost of electricity for most businesses

Publish on: 03/22/17 3:14 PM

Written by Elizabeth Ireland

As a business owner, your profit margin is likely to be the most important variable in determining productivity and how well you are doing as a business. With this in mind, there are certain costs you may struggle to reduce, no matter how hard you try; your electricity bill being one. You can’t just shut off power and expect your business to continue running, so understanding which factors influence your bill is important. Below are three of the main factors that will affect your energy costs.

Current Tariff

There are many suppliers within the energy market, and each one will have different tariffs, determined by their rates and terms and conditions. Consequently, it is vitally important for business owners to compare these different rates – both unit rate and standing charge – in order to reduce their electricity bill. As there are many suppliers across the energy market, it may be beneficial to seek the help of a utility specialist who can provide you with independent advice and with a few key pieces of information can source you the best rates for the needs of your business.

Locality

Another variable some businesses simply cannot change is where they operate from. If your business is located in an area where taxes, consumption rates and operational costs are higher, this is going to equate to a higher bill. Unfortunately, it is not only your electricity bill that will be affected, but also your gas and other fuel sources your company might use. Location is one of the hidden costs many business owners face, and unfortunately one that many cannot control.

Season

The winter season is typically when energy costs are at their highest – both commercially and residentially. The simple fact being that you are using more energy during these months, and demand is higher, causing usage rates (the rate suppliers charge per unit of energy) to typically rise. Additionally with the arrival of winter, the days will not only become colder, they will grow darker and shorter too. As a result, lighting the workplace will become a necessity, which will mean increased usage and a higher electricity bill.

Of course there are other factors which will determine electricity costs, such as the size of your business, the number of employees and the size of your facilities, etc. Locality and season are two of the leading factors which will cause an increase in your rates, and are factors you simply cannot control. You can, however, reduce operational cost by seeking the help of a utility specialist who can help you conduct a full energy market comparison and switch your electricity supplier to one that best suits your needs.

At Watt HQ we have a team of saving specialist who can handle the entire switching process for you, they are experts in the field and know where to look to find the most current tariffs, at the best rates, which are perfectly suited to your business’s needs.

If you are interested in switching or renewing your business energy contract today click here or call us on 0843 9033201.


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