When it comes to outsourcing business electricity consultants, you will not only do your company a favour by getting the best team out there, but you will also be able to focus on the company’s core strengths and activities. Of course, reducing energy consumption and getting the best deals is just part of the overall progress of the company. Following this logic, having a consultant who will take care of energy spending matters will ease so much burden off your shoulders.
But before arriving at this point, you have to know if the consultant is worthy of hiring. Here are some questions you may ask:
Is business energy cheaper than domestic energy?
Surprisingly enough, businesses pay less when it comes to the average unit rates in the UK. Large-scale operations usually obtain smaller unit rates caused by their higher demands and economies. Most energy suppliers purchase business electricity in bulk, while domestic energy purchase happens every month, or several months in advance. However, the answer to the simple question “Is Business Energy Cheaper?” is quite more complex than you think. There are many key differences between the two tariffs and a lot of simple actions, habits, and choices that can instantaneously affect the price of energy you pay annually.
For example, many business owners find themselves on ‘rollover’ contracts, which is one of the most expensive energy contracts to be on. There are several ways not to come across in such an agreement, but the most effective method yet is to get a reputable supplier with the best business electricity prices per kWh. Technically speaking, the domestic and business gas and electricity supplies come from the same sources and travel via the same cables. However, energy for both consumers operate differently.
What makes this energy consultancy the best fit for my business?
There is an abundance of Third Party Intermediaries (TPIs) within the energy consultancy sector with new businesses popping up all the time, from larger organisations to individuals practicing on their own. For the enterprise to get the best business electricity rates in the country, find a TPI that has an excellent track record and can provide high-quality work and output.
Will you be able to offer me unbiased advice?
If the business is acquiring commercial energy, it must be backed up with a professional consultant who can explain the complexities involved in the process. The procurement process involves the consultancy contacting many different suppliers to obtain commercial energy prices best suited to your business KPI’s and annual consumption. Once your consultancy has acquired contract terms, prices and analysed the UK energy market conditions, they should be presented to you as straightforward as possible and ensure that you can easily view and compare the options provided to you. Before engaging with a consultancy, ask them to provide you with an example of how they will present contracts and business electricity prices per kWh to you. This will help you to determine that your consultancy will offer you several choices suited towards your business requirements and be able to adequately explain these options to you.
Why is the price of my energy so high?
Energy is a funny one, but if you are going in blind then like anything in life, you’re going to bump your head. Apart from the wholesale electricity rate you’re paying, there are other extra fees that you must fulfil. In fact, only 35% of the total unit cost of your energy is made up of the wholesale energy cost. So where does the other 65% come into play? Well, you have a variety of government charges (17%), network costs (23%), environmental & social obligation charges (13%), as well as your supplier operating costs (12%) added into the overall unit rate. Not forgetting the all-important standing charge, which will be added as a separate stand-alone additional fee to pay.
A supplier who isn’t wanting to lose money knows that the energy price may rise between now and at any given point in the future. This is applicable as well with the additional charges mentioned before. Unless you are on fixed rate contract the above elements of your unit rate are also subject to change. The government may decide to raise their fees if they so choose during their budget review each April. Now this doesn’t always mean that a fixed rate contract is best for you, as price and risk buffers are added into fixed unit rates to account for wholesale price rises and government tax rises, but what it does mean is that you will need an energy consultant with a keen eye to help you nip and tuck your supply agreements and secure the best business electricity deals to make it bespoke to you and your business. If you are a larger business, bespoke pricing is a must and is imperative for a streamlined energy efficiency strategy.
A business must use its time, money, and energy wisely and by hiring a business electricity consultant, this could be achievable. The key to the success of a business venture lies in intelligent decision making and comprehensive budget allocation. Without sufficient funds, the business’s movements will be limited. That is why their employees must focus on preventing this from happening while the consultant will take care of energy-related matters.