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A Guide to Electricity for Business Energy

Over the past three years, business electricity prices in the UK have experienced significant fluctuations, influenced by various economic and geopolitical factors. In 2021, prices were relatively stable, but the onset of the global energy crisis, exacerbated by geopolitical tensions, particularly Russia’s invasion of Ukraine in early 2022, led to a sharp increase in prices. This spike was driven by rising wholesale gas prices, upon which electricity generation heavily depends in the UK. Throughout 2023, prices remained high, although there were periods of slight relief as the market adjusted to alternative energy sources and supply chain adaptations. Businesses have been urged to adopt energy efficiency measures and consider renewable energy options to mitigate the impact of these high costs. Overall, the landscape of business electricity prices has underscored the volatility of energy markets and the growing importance of sustainable practices.

Here is our guide to for Small Businesses and SMEs

Navigating the realm of business electric energy can be daunting for small business owners and SMEs. To help you make informed decisions and optimise your energy usage, here’s a concise guide:

• Assess Your Energy Needs: Start by evaluating your business’s electricity requirements. Consider factors such as the type of equipment you use, peak usage times, and any specific energy-intensive operations. Understanding your energy needs is the first step towards choosing the right energy plan.
• Research Providers and Plans: Take the time to explore different energy providers and their offerings. Look for providers that specialise in serving small businesses and SMEs. Compare prices, contract terms, and customer reviews to find a plan that aligns with your budget and preferences. Even better, use a firm that will help you do this, like our trusted partner, Bionic.
• Understand Tariffs and Charges: Familiarise yourself with the various tariffs and charges associated with business electric energy. This includes unit rates, standing charges, and any additional fees or surcharges. Understanding these costs will help you accurately estimate your monthly energy expenses.
• Consider Renewable Energy Options: Investigate renewable energy solutions as a sustainable and cost-effective alternative. Many providers offer green energy plans tailored to small businesses, including options such as solar power or wind energy. Going green can not only reduce your carbon footprint but also potentially lower your electricity bills over time.
• Implement Energy-Saving Practices: Adopt energy-saving practices and technologies to optimise efficiency and reduce costs. This may include investing in energy-efficient appliances, upgrading insulation and lighting systems, and implementing smart energy management solutions. Small changes can make a big difference in lowering your electricity consumption.
• Review and Optimise Regularly: Regularly review your energy usage patterns and monitor your bills to identify areas for improvement. Consider conducting energy audits or seeking advice from energy experts. Periodically reassess your energy contracts to ensure they still meet your business’s evolving needs.

By understanding your energy requirements, researching available options, and implementing energy-saving measures, you can effectively manage your business electric energy usage and help your bottom line. If you need assistance or want to explore energy price comparison options, consider utilising our services for personalised guidance and support