Regardless of the type of business you own, and how many premises you have, the amount of money you pay for electricity can affect your balance sheet. You can decide to utilize gas to heat the business premises like an office and shop, but there is a good chance that you may use a lot of electricity to power computers, equipment, and for lighting.
You may need to have separate energy contracts for electricity and gas because it’s rare to find business dual fuel tariffs. But some energy suppliers at Utility Bidder can offer discounts if your business purchases their electricity and gas from the. It’s crucial for your micro business to be on the best energy deal so that you can keep the bills low. This post discusses how your micro business can source its electricity.
A micro business
The rules that apply to business electricity tariffs tend to vary depending on the type of company you run. To be regarded as a micro business, you need to have less than ten employees and the business balance sheet or turnover should not exceed £2 million. Further, your business needs to utilize below 100,000 kWh of electricity per year.
Therefore, if you have a micro business, then energy suppliers can offer you more protection than larger businesses. You can also benefit a lot from more flexibility when it comes to switching energy suppliers.
The good news is that you can find many energy suppliers out there that can offer you great energy deals. Also, energy suppliers can tell you the main terms of the energy plan before accepting it. An energy supplier can also send you the energy contract with its terms and conditions including renewal terms for a fixed term tariff.
Once you agree to get the energy contract for your micro business, you can use direct debit, a credit or debit card, bank transfer, and cheque to pay for the energy bill.
Electricity tariffs for micro businesses differ from those of other businesses and domestic customers. A business electricity contract can usually last between one year to five years, but they may sometimes not have a cooling-off period. This is the reason why it makes sense to get the right energy deal from the onset.
Electricity is charged in units known as kilowatt hours. This refers to the energy usage over a certain period. A unit price for businesses is often cheaper than for domestic electricity. Remember that you can negotiate on price. In most cases, larger businesses tend to use more electricity than smaller businesses. As a result, these businesses get cheaper energy rates.
It’s worth noting that the electricity bill also comes with other costs. These can include a standing charge, VAT, climate change levy, costs associated with the transmission and distribution network.
A micro business owner can switch energy suppliers whenever they want. On the other hand, other businesses can only make the switch once they are in the renewal window. But before you switch to any energy supplier, you need to make sure that you know about this switching process.