What makes up the cost of your business electricity?

Your business electricity bill is made up of commodity costs (such as unit rates per kWh and daily standing charges) which account for about 30% of the total, alongside non-commodity charges (such as TNUoS, DUoS, BSUoS, VAT, the Climate Change Levy, and Contracts for Difference) which make up the remaining 70%.

What is the difference between a fixed and variable business electricity contract?

With a fixed contract, your unit rate per kWh is locked in for a set period (usually a year), providing price stability and easier budgeting. On a variable contract, the rate fluctuates based on wholesale market changes, offering more flexibility to switch without exit fees but leaving you vulnerable to rising prices.

Why do business electricity bills increase?

Business electricity bills can increase due to rising global demand, supply shortages in the natural gas network, low yields from wind or solar energy, market volatility that forces suppliers out of business, or reductions in government support schemes.

How can I reduce my business's energy bills?

You can reduce your bills by understanding your energy consumption (such as using smart monitoring tools like IPSUM), comparing available energy tariffs on the market, choosing a supplier that aligns with your business needs, and switching to a more competitive contract.

What makes up the cost of your business electricity?

Your business electricity bill is made up of commodity costs (such as unit rates per kWh and daily standing charges) which account for about 30% of the total, alongside non-commodity charges (such as TNUoS, DUoS, BSUoS, VAT, the Climate Change Levy, and Contracts for Difference) which make up the remaining 70%.

What is the difference between a fixed and variable business electricity contract?

With a fixed contract, your unit rate per kWh is locked in for a set period (usually a year), providing price stability and easier budgeting. On a variable contract, the rate fluctuates based on wholesale market changes, offering more flexibility to switch without exit fees but leaving you vulnerable to rising prices.

Why do business electricity bills increase?

Business electricity bills can increase due to rising global demand, supply shortages in the natural gas network, low yields from wind or solar energy, market volatility that forces suppliers out of business, or reductions in government support schemes.

How can I reduce my business's energy bills?

You can reduce your bills by understanding your energy consumption (such as using smart monitoring tools like IPSUM), comparing available energy tariffs on the market, choosing a supplier that aligns with your business needs, and switching to a more competitive contract.

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