Keeping your energy budget under control each month is an important part of ensuring that your business doesn’t run out of money.
Shopping for competitive pricing offers may seem overwhelming to some business owners. This is because energy suppliers don’t always provide the same information as each other. Some may not even explain how they got their pricing quotes which makes your job difficult to whittle it down.
It can be hard to stay on top of this when energy prices are constantly fluctuating. If you know what makes energy prices spike and fall then you could brace your business for spikes that could drive your cost up.
How are business energy prices calculated?
Business energy is calculated differently from domestic energy. This is because there are more factors that affect a business’s gas and electricity prices. Such as:
- Market activities
- Business gas meter
- Overall consumption level
- Current spends on business energy
- Size of the business
Due to having so many factors that affect business energy prices, it can be hard to know whether you are paying the right prices for your energy deals. Not only this but it can also be difficult to find the right prices. Therefore, business owners should be comparing energy providers to ensure they are not overpaying for their business gas and electricity. If you’re not sure where to start comparing energy tariffs why not use our free comparison tool to help.
What affects business energy prices
Energy prices are always fluctuating quite a bit, which means it is important to ensure you switch at the right time. If you use our business energy comparison tool or put your postcode in at the bottom of the page, we would be able to calculate a deal that is right for you at this time.
There are many things that can affect the price of your energy bills. Some of these include:
- The weather- this can affect your energy bills in several ways. For example, really cold winter will increase the demand for energy as people heat their homes and businesses. Also, as we move to more renewable energy the weather begins to play a bigger part. For example, Britain is one of the biggest offshore wind generators meaning we get a lot of our power from here. However, if the wind drops then it means more natural gases must be used up which can lead to an increase in prices.
- Global events- in times of uncertainty such as war or a natural disaster in an n oil-rich country then prices can be affected. Disasters in these types of countries can cause limited production and make it less accessible to other countries which can push up prices.
- Supply and demand- this is the relationship between how many people are using energy to how much energy is being produced. Ideally, these should balance each other out but this is not always happening. Sometimes there is a quick surge in the demand for energy which can make prices go up. One example of this could be a drop in temperature which will increase demand and push prices up.
How to make sure your business energy deal is not too expensive
As a business owner paying out for energy contracts at this time may seem troubling. You may think that holding out and waiting for energy prices to come down is a good idea. However, this is not recommended. This is because the market is constantly changing and trying to find the “best time” can be hard to navigate if you don’t have an energy expert within your business.
The best way to change energy suppliers and make sure you’re getting the right deal would be to compare energy suppliers. This ensures you get the cheapest price that you can at that time. It’s always better to be ready to switch your contract when it’s coming to an end than going on to a more expensive contract.
If you think now is the best time to switch your business energy then put your postcode in at the bottom of the page and let us take care of the rest!