Business Energy Tariffs Explained

commercial or domestic energy

In this article I will briefly go through the three different types of energy tariffs currently available to UK businesses. The Big Six energy providers have the monopoly on the market when it comes to providing energy to UK residents. British Gas, EDF Energy, E.ON, npower, Scottish Power all provide energy to commercial customers in the UK. But in recent years there has been a sharp increase in the amount of small, independent energy providers who offer either commercial or domestic energy or both. Some of the new players in the competition include the likes of Ecotrasteam, Npower and Scottish Power who offer competitive tariffs at low cost. These new energy companies are rapidly growing at a very fast rate and the competition means that the prices are now within reach of any customer.

There are two types of tariffs that businesses can get; one is a commercial energy deal and the other is a domestic energy deal. A commercial deal covers large commercial buildings such as hotels, offices and retail stores. On the other hand a domestic deal covers a domestic property which normally includes a flat or suite. You can obtain both types of contracts from a single provider by taking advantage of one of the company’s contracts. So for example if you wanted to take advantage of the cheapest gas and electricity rates you would simply request a quote for a fixed period from one of the energy supplier’s websites.

cheapest deals

The key thing to note when looking for the cheapest deals is to make sure you are comparing apples-to-apples prices. It is very easy to compare one supplier with another by just looking at the monthly average price rather than looking at the actual contract length. The problem is that the average price is only one element of the contract. In order to give you a complete picture you should be able to break down each element of the contract such as the hourly rate, the quantity of fuel bought and any taxes and other charges.

If you want to pay less when using your heating and cooling system then you should always consider signing up to a wholesale energy contract. These provide the most inexpensive way for businesses to be able to buy their own supplies and avoid paying so much in heating and cooling bills. However, because these contracts are set up over a long period of time you could easily find that you are spending more on the ongoing fees than you were originally paying when you took out the original deal. But with a wholesale energy tariff you are able to pay less in the long run than you would if you signed a new short-term contract.

domestic energy use

Some people assume that if they have a domestic energy use contract with their supplier that they automatically have to be part of the domestic energy use scheme. This is not true. In fact if you want to be part of this scheme you can choose not to and only pay for the cost of heating and cooling if you choose to be a member. If you find that you cannot stay on top of your domestic energy usage you can make changes to your contract so that you pay a bit more every month to the supplier. They are not keen to make customers go without the service and will work hard to make sure you are still happy with your chosen supplier.

As well as being able to benefit from flexible tariffs you can also benefit by choosing a gas and electricity supplier that is better than your average provider. With gas prices constantly on the incline many people are looking for ways to save money where they can. For some it may mean switching to a supplier that offers cheaper gas and electricity prices but this may not always be the best option. For example gas prices can rise sharply depending on weather and supply so businesses that rely heavily on gas and electricity may find that they have to make energy upgrades. If you do not use an energy supplier that is better than your current supplier then you may find that you cannot change your gas and electricity supplier without affecting your service or product.

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