A Brief Guide To Business Energy

Business Energy

For anyone who has never before had a business energy tariff, it can leave them with a number of different questions when they have to go down the route of getting energy for a business. This is because it differs somewhat from residential energy tariffs and is much more complex. For this reason it is important to develop a good understanding of how the industry works. 

Some of the most common questions that first time business energy users have are listed below in order to provide you with some more details and a greater level of insight.

How is it different from residential energy tariffs?

The main way in which residential energy tariffs are different from business energy tariffs is the type of contract that is produced by the provider. For instance, the contracts are typically fixed at a certain price and for a certain amount of time, such as between one and five years. 

Are businesses protected with business energy tariffs?

There are certain codes within the business energy industry that providers have to abide by and specific conditions that impact on how providers do business and communicate with their customers.
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There are a number of regulatory bodies, such as the
Office of Gas and Electricity Markets (OFGEM), which are in place to ensure that customers are always treated fairly and that their rights are protected at all times. 

How do business energy tariffs differ between different sized businesses?

Depending on the size of a business (large, small / medium, micro), the types of contracts and cost of tariffs that are available from providers differs greatly. For instance, small / medium sized businesses usually go for contracts that are fixed at a certain rate, as these provide a good level of both affordability and convenience. With the rate being fixed, smaller sized businesses find themselves protected when energy prices go up and it enables them to budget better. With larger sized businesses treating energy consumption as something that is more strategic, they typically opt for a flexible tariff as it provides them with the freedom to both sell and buy energy in order to optimize their procurement. On the other hand, micro businesses have the ability to observe different business energy tariffs online and can terminate their contract prior to it ending.

What impacts on the price of business energy tariffs?

There are a number of different factors that impact upon the price of business energy tariffs. These include things such as wind generation, availability and flow, the price of crude oil, certain regulatory pressures, storage, and weather conditions. However, for those businesses that have contracts with a fixed rate, they will never really experience any of these fluctuations as they are protected from these changes.

Other questions that first time business energy users may have include is electricity cheaper at night? How much do business energy tariffs cost?
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Is it easy to switch between providers with business energy tariffs? And is a smart meter required for business energy tariffs?

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