Expert Tips on Finding the Best Electricity Tariffs for Your Business

Finding the right business electricity tariff is key to managing costs and being energy efficient. The right tariff will save you money and help your business be more sustainable. Here are our top tips to help you find the best business electricity tariff.

Know Your Business Energy Usage

Firstly to find the best business electricity tariff you need to know your business energy usage. Businesses are of different sizes, industries and operating hours. A coffee shop will have different energy needs than a large manufacturing plant.

1. Review Past Bills: Look at your past bills to understand your usage patterns. This will help you estimate future energy needs and peak usage times.
2. Smart Meters: Installing smart meters will give you real time data on your usage, so you can track your usage patterns more accurately.

Small Business Electricity Plans

Small businesses like retail shops, cafes and hair salons have different energy needs than larger businesses.

Key Points of Small Businesses

1. Lower Consumption: Small businesses consume less electricity than larger businesses. So, they can benefit from tariffs with lower standing charges and competitive unit rates.
2. Flexibility: Small business electricity plans need flexible energy plans that can adapt to their changing needs. For example, a seasonal business might benefit from a plan that has lower rates during off-peak seasons.
3. Energy Efficiency: Energy efficiency is crucial for small businesses to keep their energy costs down. This can include using energy efficient lighting, optimising heating and cooling systems and regular maintenance of electrical equipment.

Suitable Plans Types

1. Fixed Rate Tariffs: These provide budget stability which is perfect for small businesses with limited cash flow. Knowing the exact cost per unit of electricity helps with financial planning.
2. Renewable Plans: Small businesses looking to be more sustainable can opt for green tariffs which offer electricity from renewable sources. Suppliers like Octopus Energy and EDF offer such plans with competitive rates.
3. No Standing Charge Tariffs: For businesses with low energy usage, no standing charge tariffs can be more cost effective. These tariffs mean the business only pays for the electricity they use.

Large Business Electricity Plans

Big businesses like manufacturing plants, hospitals and data centers have high energy usage and need more complex plans to manage their consumption.

Key Points for Large Businesses

1. High Usage: Big businesses use a lot of electricity so they need plans that offer competitive unit rates and good terms for bulk usage.
2. Peak Demand Management: Managing peak demand is key for big businesses to avoid the high costs associated with peak usage times. Energy management systems and demand response programs can help optimise energy usage.
3. Energy Audits and Efficiency: Regular energy audits and energy efficient technologies can save a lot. This includes investing in energy efficient machinery, optimising production schedules and using automated systems to reduce waste.

Suitable Plan Types

1. Custom Tariffs: Big businesses often benefit from bespoke tariffs that suit their energy needs. Suppliers may offer special rates for high usage and energy consultancy and management services.
2. Flexible Contracts: Contracts that can be adjusted according to the business’s changing energy needs can be useful. This includes contracts with options to change rates based on market conditions.
3. Renewable Energy Plans: Big businesses are increasingly going for renewable energy plans to meet their sustainability goals. Suppliers like EDF and British Gas offer large scale renewable energy solutions that can support a business’s green initiatives.

Compare Different Tariff Types

There are several types of tariffs for businesses and understanding them can help you choose the best business electricity tariffs.

1. Fixed Rate Tariffs: A fixed price per unit of electricity for a specific period, usually 1-3 years. This type of tariff gives stability and protection against market fluctuations but may not benefit from falling prices.
2. Variable Rate Tariffs: The price per unit can change, usually in line with wholesale energy prices. This can be beneficial if prices drop but also carries the risk of higher costs if prices rise.
3. Deemed Rates: Default rates applied if you haven’t agreed on a specific contract. These are usually higher and less favourable so it’s better to avoid being on a deemed rate.
4. Green Tariffs: For businesses looking to reduce their carbon footprint, green tariffs offer electricity from renewable sources. These can be more expensive but are getting more competitive and beneficial for sustainability goals.

Look Around and Compare Prices

The energy market is competitive and prices can differ significantly between suppliers. Use comparison websites to get an idea of what’s on offer.

1. Comparison Websites: Platforms like Connect Market, Energy Mase Easy and Can Star Blue can give you a quick comparison of tariffs from various suppliers and help you find the best deals​.
2. Supplier Reputation: Consider the supplier’s reputation, customer service and reliability. Trusted suppliers like AGL, Alinta Energy and Energy Australia have good reviews for their customer service and support.
3. Bespoke Quotes: Always get bespoke quotes based on your business needs. Many suppliers offer customised tariffs that may suit your consumption patterns.

Contract Length and Flexibility

Contract length and flexibility can affect your costs and convenience.

1. Contract Length: Longer contracts get better rates but can tie you in to terms that may not be favourable if your energy needs change. Is a short term or long term contract better for your business?
2. Flexibility: Some suppliers offer flexible tariffs that allow you to adjust if your energy usage changes. This can be useful for businesses with variable energy usage.

Additional Benefits and Discounts

Many suppliers offer extra benefits that make their tariffs more appealing.

1. No Standing Charge: Some suppliers offer tariffs with no standing charge, useful if your business has periods of low energy usage.
2. Rewards and Incentives: Reward schemes offer discounts and freebies, added value beyond just the energy cost.
3. Bundled Services: Some suppliers offer bundled services, electricity with other utilities or services at a discounted rate.

Monitor and Adjust Your Energy Usage

Energy efficiency can reduce your overall consumption and save you money regardless of your tariff.

1. Energy Audits: Do energy audits to find out where you can reduce consumption.
2. Energy Efficient Equipment: Buy energy efficient appliances and lighting. Simple changes like switching to LED bulbs and installing motion sensor lights can save you a lot.
3. Peak Demand Management: Use energy management software to monitor and shift your energy usage away from peak times to off-peak times when rates might be lower.

Stay Informed and Proactive

Energy markets are changing and staying informed about market trends and regulatory changes can help you make better decisions.

1. Market Trends: Keep an eye on market trends and forecasts. Falling wholesale prices for example might mean it’s a good time to switch to a variable rate tariff.
2. Regulatory Changes: Stay up to date with regulatory changes that affect energy prices, government subsidies or changes in carbon taxes.
3. Regular Reviews: Regularly review your energy contracts and tariffs to make sure you’re always getting the best deal. Switch suppliers if a better offer comes along.

So, there you have it, follow these tips and you’ll find the best business electricity tariffs for your business, save costs and energy. Remember to compare, think about your business needs and stay informed.