Who Is the Cheapest Business Electricity Supplier in the UK?
For a lot of small businesses in the UK, the most important question for them when it comes to business electricity is: “Who is the cheapest?”. They don’t want to know who has the best service or who is closest to them or who is the most stable provider. Instead, they are looking for the absolutely lowest rates, because they need every advantage they can get to inch ahead of their competitors.
It’s understandable, and picking electricity suppliers based on their rates is not a new practice, nor is it a bad one. It can be an excellent way to cut costs and enjoy greater profits due to lower operating costs. A lot of businesses are able to become more profitable because they have made choices like this.
However, there is an issue with labeling any supplier as the cheapest business electricity supplier for UK customers. The supplier who is cheapest for one business might not be the cheapest for another. That’s because not everyone is charged at the same rate by the same supplier.
It’s not a matter of who the supplier likes more or of any sort of preferential treatment. Instead, it comes down to how big the businesses and where it is located in relation to the supplier.
The Two Factors
There are to primary factors that differentiate the rates charged from one business to another when receiving power from the same supplier. The first one is the size of the business. The suppliers split their rates into three separate tiers. The first or lowest tier is for small business, the second or middle tier is for mid-sized businesses and the highest third tier is for large businesses. So, the larger the business, the more the business pays the supplier per unit of electricity. That cost can be calculated every hour or every half hour. The hourly calculation tends to be cheaper, while the half-hourly calculation tends to be more precise.
The second factor that goes into determining the price a business will pay for electricity is their distance from the supplier. This is known as the standing charge, and it relates to more than just distance. It is meant to denote how much it costs the supplier to send electricity to the business, but it usually just comes down to distance.
In order to find the cheapest business electricity supplier for UK customers, these two factors have to be considered. A supplier may be charging absolutely incredible base rates for a small business close by, but when you look at how much they charge a large business that’s farther away, it may not be worth it for you to sign up with them.
How to Find the Rates
It made sense in the past to go from one supplier to the next asking for quotes. There weren’t many suppliers a few years ago, and it didn’t take long to find out all their quotes. The industry landscape is a bit different now. If you were to try to find out all the rates from the various suppliers out there, by the time you got to the last one, the first supplier’s rates may have changed. That’s how many of them are available now.
It would take too long to go through all of them to make it worth your while, but thankfully you don’t have to. You can find out the cheapest business electricity supplier for UK businesses by using free quote generators. These search tools are supplied by price comparison websites, and they will help you find out what rates are being charged by the various suppliers out there.
They will usually ask a few pertinent questions that help them give you more accurate quotes, such as how large your business is and where it is located. This lets them filter the search results through the two factors we discussed up above. Their quotes might not be exactly right, but they should be close enough to prove useful to you in narrowing down your choices and eliminating suppliers from your search list that are much higher than others.
It’s perfectly fine to search for and pick the cheapest business electricity supplier the UK has to offer, but it can be tricky actually finding out who that is. Thankfully, you do have resources available to you that can make the search easier and give you the answers that you are looking for.