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How Business Electricity Is Different To Domestic Electricity And It’s Advantages For Businesses

March 25, 2014 by Financefox in Tips

ElectricityIf you own a business you may be curious to know whether there is any difference between domestic/home electricity and business electricity.  The actual energy that goes to both commercial and residential properties is exactly the same.  However, there are differences in the way business electricity that you can find more information about at is paid for that make it worth considering for business customers.

Domestic electricity tariffs are put together and priced in the easiest way for homeowners and will stay the same price for a reasonably long period of time.  Energy companies normally offer domestic customers rolling contracts, as this allows them to change suppliers with as limited amount of fuss as possible.

This is very different to how business electricity is packaged, as there will normally be a set contract length, 2 or more years for example.  The price of business electricity changes more often than domestic, as the price will be based on the daily wholesale value of the electricity.

Some suppliers will give companies the option between having a variable price and a fixed price deal.  This does not actually affect the price in way; it just affects how it is paid.

Another difference between domestic and business electricity that affects the price is what is known as profile class.  The profile class is when a company’s energy meter is read manually instead of automatically.

A company’s profile class enables their electricity supplier to estimate how much energy they have used in a working day, taking into account any seasonal variations in usage.  This helps an electricity supplier to bill the company accurately.

Business electricity tariffs and contracts are generally locked in for longer period of times than the domestic alternatives.  In some ways it may sound more complicated than domestic energy, but is very advantageous for companies.  As an example, a fairly large company may have the option to sign up for a flexible and more or less bespoke electricity contract with a supplier.  With this kind of contact, the company may be able to just purchase the electricity when it needs it and because the price is based on the wholesale price, it would allow the company to have more of a say in what it pays for its energy.

Another benefit of business electricity to companies is that many electricity suppliers are now offering renewable energy options to their business customers.  This is a huge benefit to companies that are interested in altering their environmental impact.

Last but not least, another advantage of business electricity is that the energy supplier a business chooses to work with will more than likely assign a dedicated energy account manager to that company.  This is reassuring for businesses as it means they have someone within the supplier workforce who is going to handle their electricity queries and needs.  Issues would be resolved quicker this way and if there were any changes in a business’s circumstances they would be updated in their account and billing information with minimal fuss.