Energy costs are one of the biggest overheads in an office environment, but a range of simple changes can help you reduce your costs by up to 20%. These changes will help you save money and help the environment at the same time. By making your business energy efficient, you will be reducing your carbon emissions, cutting costs and showing customers and employees that you care about the planet. And as the carbon trust is a Principal Partner for the UN Climate Change Conference in Glasgow, making your business energy efficient is a good way to show your employees and customers that you’re concerned about the planet.
Time-of-use tariff
If you are a business owner and looking for a business energy tariff, you’ve come to the right place. This type of tariff lets you buy bulk energy for a lower price. Moreover, it lets you benefit from wholesale prices. This type of tariff works well for larger, multi-site businesses and those who can make large down payments. However, this type of tariff also leaves you open to price increases if the price of energy rises.
The current situation in the UK is uncertain. Due to the lack of investment in renewable energy sources, the country faces a serious energy shortage in the near future. Time-of-use tariffs may help reduce demand and relieve pressure on the energy infrastructure in the UK.
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Flexible approach tariff
A flexible approach tariff can provide a competitive and efficient solution for business energy. The flexibility of the consumer can be exploited by shifting charging to off-peak hours and changing consumption patterns. The conventional flat capacity-based tariff structure does not provide adequate incentives for load shifting. Fig. 4b shows an example scenario where a business is using its full interconnection capacity, but is unable to shift its load to off-peak hours.
A flexible approach tariff can save businesses money on energy bills by allowing them to take advantage of favourable wholesale rates. It is also beneficial for companies that are already with their supplier. These contracts may not be the cheapest option, but they can help with budgeting and planning. Moreover, large businesses may prefer to purchase energy in bulk at favourable wholesale prices, which can help them budget their expenses.
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Rollover contract
If your Business Energy UK contract is set to end in one year, it may seem as though you’ll have little control over the situation. However, it’s important to understand that you may be able to avoid a rollover by providing your energy supplier with the correct notice of termination. In order to be able to avoid a rollover, you must give your energy supplier at least six months’ notice.
If you don’t cancel your current contract in time, you will be rolled over to a new contract. Obviously, this is bad news for you and your business. Not only is this costly, but you’ll be locked into that new tariff for another year.
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Deemed contract
If you want to save money on your energy bill, it is vital that you find the best deal. Deemed contracts can come with high prices and are not flexible – they automatically sign you up for another year. Switching suppliers is easy and free, but you need to be proactive to get the best deal. Luckily, Ofgem, the government regulator for energy, has set out a number of rules to help you find a better deal.
Firstly, make sure your new premises does not have a deemed contract. A deemed contract can be created when a business moves premises and does not post its contract to the new supplier. It could also be due to a lack of notice or a mistake on the part of the new supplier. In any case, if you do not complete the transfer, your existing business will be charged deemed rates from the day the contract ended until your new supplier takes over.
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Charges charged at a rate of 20%
The majority of businesses are charged VAT on their business energy bills, which is 20% of the total amount of the bill. However, some businesses qualify for a lower rate, which is 5%. Businesses can benefit from a lower business energy tariff if they use less than 50 per cent of their energy for business purposes. To apply for a reduced rate, you should fill out a VAT declaration certificate. Your supplier should have this form available online.
As with domestic energy, business energy costs include VAT. Businesses have the same rights as domestic consumers when it comes to taxation and are therefore subject to various green taxes, such as the Climate Change Levy. Businesses are also charged per kilowatt-hour (kWh) of energy used, and should make sure to note this on their bills. Businesses should take care to make sure that they understand how much this charge is before signing up for a plan.
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Security deposit required
When choosing a business energy supplier, you may be concerned about paying a security deposit. A security deposit is normally paid at the beginning of a contract with an energy supplier. Alternatively, a security deposit is not required if you sign a Direct Debit or Pay as You Go contract. Prepaying your energy is a good idea as this can reduce the risk of missing payments and building up debt. However, if you are late with a payment, you may be subject to the security deposit.
Switching through Uswitch for Business
If you’re a business owner, switching through Uswitch for Business is an excellent way to save money on energy bills. The platform allows you to compare prices across the market and pick the best deal for your company. It offers services from many of the big names in the business world, including British Gas, CNG, and Eon.
USwitch’s website provides a range of switching and comparison services across a range of sectors, including business and personal finance. The brand is owned by Red Ventures, which recently bought it from Silverlake and Zoopla.
