Utility is often utilized to mean the cost of using a product or service that helps in producing services or goods. These costs tend to vary significantly based on your location and type of business. You can estimate the utility costs of your business.
And, when calculating business utility costs, you need to determine the type of utilities you want for your business. You can want to calculate business gas, water, or even business electricity. It’s crucial to calculate your business energy costs so that you can determine how much you are spending. This article discusses how you can calculate business energy costs.
Business energy costs
First of all, you need to know the type of business energy tariff you are on. If you are not sure, then you should contact Utility Bidder to help you with this. Besides, you also have to know whether you are paying various times of use energy rates or a single business energy rate. In most cases, you can have a standing charge and either a single or a combination of business energy unit rates. This includes a day business energy rate, a business energy night rate, a business energy weekend rate.
A business energy day rate is often the energy you use between 7 am and 7 pm. A business energy night rate refers to the energy that you use between 7 pm and 7 am while the business energy weekend rate is the energy you use during the weekend.
A standing charge refers to a fixed charge which you need to pay per day or month. The standing charge on the business electricity and gas covers the cost of supplying energy to your property, and keeping your business premises connected to the business energy network.
How business electricity pricing works
Business electricity plans and prices are set up and calculated differently to household ones. You need to note that you don’t have to utilize the same business energy supplier for both gas and electricity supply. But it’s a good idea to use one business energy supplier to get a better energy price.
When it comes to business electricity rates, they are based on the electricity usage and size of your business. It can be calculated on a variable or fixed rate tariff and is based on an energy unit rate per kWh. Take note that there can also be various extra charges that may apply like a capacity charge that is shown as KVA on the business energy bill. This can or cannot be set up properly and may need checking to make sure that you are not being penalized for a too low capacity or paying for excess capacity.
There is a wide range of charging plans and with the current energy crisis; some business energy providers are changing the price before the expiry of an energy contract. This is why you should always read the terms and conditions of your business energy contract before you decide to sign it. You should also ensure that you know exactly what you are paying so that you can reduce costs and help with your budgeting.