Large Business Energy Guide
As a large business, a better understanding of business energy procurement, how it works and how your business can make the most of the options available to find the right deals and tariffs for you could save you money…
Business energy contract due to renew? Call us on 0800 9777 000 or fill in our business quote form to see how much you could save…
How can I find the right energy provider for my large business?
To find the right business energy provider you should consider the following:
Pricing
Compare the prices of different energy providers to find the best deal. You can use an energy comparison service or broker like Exchange Utility to help you find the deal best suited to your large business.
Reviews
You should look for brokers or providers who have a good track record of providing excellent customer service to businesses that are similar to yours. With our in-depth knowledge of the energy market and high customer satisfaction ratings, Exchange Utility and our expert team of business energy brokers can help connect your business with the right suppliers.
Choice of tariffs
Choose an energy provider that offers a range of tariffs that suit your business needs. We always suggest an energy provider that we feel will be best suited to your business so that they can provide a cost-effective tariff. However, whatever we suggest we will always let you decide which provider you feel is best.
Eco-friendliness
Many small companies want to do their part when it comes to reducing global emissions, and have started looking for ways to cut their carbon footprint. Finding a provider which offers renewable tariffs will allow your business to be both sustainable and successful in the long term.
An Exchange Utility energy expert will be able to provide you with all of the advice that you need to ensure that your small business has the right energy provider for your needs.
How does energy pricing work for large businesses?
The difference in pricing all depends on the type of business energy contract that is best suited to your business. There are several types of business energy pricing, including:
Wholesale energy prices
The wholesale price of energy refers to the price at which energy providers will buy energy from generators. This is a price which can fluctuate depending on many factors including the weather as well as supply and demand.
Retail energy prices
The retail energy price is the cost of energy for customers charged by the provider, a price which is usually higher than that at the wholesale cost. The cost is higher to pay for the distribution, customer service and running of the provider that will supply your energy.
Tariffs
How energy is priced is known as the tariff; charging a fixed tariff means the cost per unit of energy is fixed, whereas valuable tariffs will see the price shift up or down.
How much energy do large businesses use?
The amount of energy a large business uses will vary dramatically depending on its size, type and location. According to the UK government, the average large business will use around 65,000 kWh of gas and over 50,000 kWh of electricity.
Your business will be classed as large by energy providers should its usage of energy rates be the same or more as the figures stated above.
What types of large business energy contracts are available?
Fixed-price tariffs: These tariffs offer a fixed price per unit of energy for a fixed period, which can be anything between one and five years. This is ideal if you’re worried about rising energy costs.
Variable-price tariffs
This means that the price per unit of energy varies, which can depend on the wholesale price of energy. It is slightly riskier to opt for a variable price, especially as large businesses can accrue high energy costs, though as the markets fluctuate the price per unit may go down.
Dual-fuel tariffs
These tariffs offer both electricity and gas from the same provider, which is a convenient option if you’re looking to reduce the number of energy contracts in place.
No standing charge tariff
A standing charge is a fixed daily cost which is paid by you to your supplier, the fee is to pay for issues that may occur. Having no standing charges on your bills might make your unit rate higher than other standard tariffs.
Quick tips on saving on energy bills as a small business
1. Understand your business energy usage and waste
Completing an energy audit on your workspace allows you to locate areas within your business that are using too much, or areas where your business is wasting energy.
2. Use energy-efficient lighting
This isn’t a new idea but it is one that’s often overlooked. Make sure your lighting is energy efficient – it’s a simple switch that is super-quick and cheap, and could save you lots of money across a year.
3. Don’t waste energy
Turning off appliances that are not in use, both overnight or over the weekend can save you some extra cash on your energy bills.
4. Replace appliances with energy-efficient ones
An office kitchen sees a lot of use, the kettle might be boiling on and off all day, microwaves and ovens being reheated every 5 minutes – sound familiar? Replace these energy-guzzling appliances with more efficient versions to save money on your bills.
5. Make it a team effort
You can’t do all of this on your own, getting your employees on board will make these changes much easier. Once your staff are taking it upon themselves to turn off their computers and flick the lights off on the way out you’ll begin to make a saving.
Can my large business get help with energy bills?
Many schemes are available for large businesses to help them with high energy bills, including the following:
Energy Bill Discount Scheme
This scheme offers a discount on electricity bills to eligible businesses.
Business Energy Efficiency Grants
These grants can be used to help businesses invest in energy-efficient products, services and equipment to help reduce their overall carbon footprint.
Hardship Funds
Some energy providers will offer a hardship fund that will help businesses that are struggling with paying their energy bills.
Large business energy FAQs
Is my business eligible for government help?
To check if your business is eligible for the Energy Bill Discount Scheme, you can use the government’s eligibility checker.
How to qualify as a large business?
To be classed as a large company you must have more than 250 employees. Companies as large as this tend to command the highest yearly turnover.
Does your business need a half-hourly meter?
If your company is using more than 100 kWh every half an hour then you must have a half-hourly meter. Not every business needs a half hourly meter, so if your business isn’t required to have a half hourly meter then getting one installed isn’t going to benefit your business.
What type of business usually has a half-hourly meter installed?
Most of the businesses that use half-hourly meters will have a high energy usage. Businesses that might work around the clock or large warehouses that use lots of equipment, and lighting and have a high amount of staff will most likely require a half-hourly meter. Examples include:
✔ Department Stores
✔ Distribution Centres
✔ Factories
✔ Warehouses
How do I check if I have a half-hourly meter?
It’s easy to check if you have a half-hourly meter installed at your business. You simply need to check your MPAN number (more information on MPAN numbers).
Your MPAN number (Meter Point Administration Number) can be found on your energy bills. To check if your business has a half-hourly meter look at the code which starts with ‘S’ if the next two numbers are 00, you’ll have a half-hourly meter.
How many large businesses are there in the UK?
According to the government website, there are only 7,700 businesses that are classed as large (250 employees or more). There are over 35,000 medium-sized businesses (50 to 249 employees. There are over 5.5 million businesses in total, meaning small businesses (0 to 49 employees) make up the biggest percentage of businesses with over 5.4 million in the UK.
Considering switching to a new business energy supplier?
Here at Exchange Utility, our expert business energy brokers can help you find a new business energy supplier by comparing tariffs and options available to your business to find you the right deal.
✔ Our customer support team is one of the best in the industry
✔ Contact Exchange Utility to switch your energy tariff in as little as 5 days
✔ Comparing gas and electricity with us will save you time and money
✔ We have years of experience in the comparison of businesses gas and electricity
✔ We have built a solid reputation for being a reliable, independent and trustworthy comparison company
✔ We can compare electricity and gas prices from industry leaders to find you competitive rates
✔ Don’t just take our word for it see what our customers are saying about us on Trustpilot
Business energy contract due to renew? Call us on 0800 9777 000 or fill in our energy quote form to see how much you could save…
