Many business owners are often on the wrong energy deals for their business due to a lack of understand of their bills and their business’s energy requirements. The first thing to do to combat this is to better understand your gas and electricity bills.
Kilowatt Hours and MegaJoules
Your electricity usage is measured in Kilowatt Hours (KWh) and your gas will be measured in MegaJoules (Mj). To come up with the right level of kWh and Mj usage on your bill, your supplier will take your last, lower meter reading away from the current meter reading, providing you with a usage amount for that period. Sometimes, the kWh usage will be converted to MWh (Megawatt hours) – simply, there are 1,000 kWh in one MWh.
Billing period
For a typical medium sized business, using between 20,000 and 160,000 kWh you are likely to be billed quarterly, but you may receive a monthly bill. For any business using more than 160,000 (160MWh), you will be billed monthly.
Usage breakdown
Most of the time, your usage is not charged back to you at a flat rate. Suppliers often create tiers of usage, and therefore tiers of pricing. You may be charged a low $ per kWh for the first 4,000 kWh of usage in a year, and then significantly higher price for the remaining usage. This means that it’s not good enough to accept a set of prices, and take the suppliers word that it’s cheaper. Our advice is to always calculate what a typical bill will be with the new prices compared to the old to properly assess how competitive or otherwise the deal is.
Peak vs. off-peak
Coupled with the usage breakdown, your kWh charges could also vary depending on the time of day you use the electricity. Simply put, using electricity at 4pm on a weekday could be much more expensive than 4pm at the weekend, not to mentioned charges being a lot cheaper at 4am in the morning.
Daily charges
You will always have a daily charge for the provision of electricity and gas to your business. These costs can vary massively between suppliers, especially when some supplier may look to re-coup margin through these charges not typically scrutinised by a business owner.
Discounts
You may find that you have certain discounts on your business energy bills – they typically come in two forms:
Pay on time: paying your bill within 10 days of receipt.
Contract term discount: by committing to a supplier for 2 or 3 years, you may be offered additional discounts. In fact, if a supplier wants you to be a ‘loyal’ customer and give up your freedom to change suppliers for a period of time, we’d always recommend looking for an attractive discount incentive.
How are my energy bills calculated?
For each unit – Mj or KWh – of usage, every supplier has a specific charge. These charges will vary depending on the total amount of energy you use during the course of a year. There are even some charges that apply depending on the time of day you use your electricity or gas, whether you’re a business or home user. Keep in mind charges fluctuate, there are no pre-paid plans or electricity cap rates.
Switch and Save with Make It Cheaper
We work with leading retailers to find you a competitive deal for your business, then do all the legwork on the spot so you start saving, fast. Get in touch with Make It Cheaper today for a free energy review.
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Whatever your workforce size, business type or location it can be difficult to decide when exactly is the right time to look at switching your energy supplier. Here are a few times when it’s ideal for businesses to look at switching gas or electricity suppliers.
Moving Business Premises
A workplace move can be both a daunting yet exciting task for your business. If a move is on the horizon it’s a good idea to look into your switching options as early as possible to ensure you have gas and electricity available on the day that you move in to your new premises.
If you’re moving far to your new workplace, the suppliers available to you may change, so this is a great time to look into switching your energy supplier. A new energy supplier may be available to you with much better rates than you are currently paying. If you are moving to a larger building due to expansion, it is likely that your energy usage will also expand and whilst your current energy tariff may be suitable for your lower energy consumption, it may incur increased fees for your expanding usage.
At The End Of Your Current Energy Contract
If your current business energy contract is due for renewal now is a perfect time to look into what switching options you have available once your contract is finished. Chances are that if you let your current energy contract roll over for another year, you will be placed on the retailer’s standard tariff, rather than one tailored for your own energy usage needs. This could lead to a larger bill, so it is important to look at changing your business energy supplier when your contract is coming up to renewal.
Checking That You’re Getting The Best Deal
If you’re looking over your business finances to ensure outgoings are as low as possible then doing a comparison on energy costs can be a great place to start. Although if you’re still in contract with your current supplier and decide to switch, cancellation fees may apply. If you’re a business looking to switch energy providers and get a better deal why not visit our contact us page to get in touch and see how we can help your business. We look forward to hearing from you.
Looking to save on your business energy bill?
We find savings for 4 out of 5 businesses. See how much your business could save.
If you’ve recently opened your energy bill to discover a cost much higher than you were expecting to pay you’re in the right place. There are many reasons why your bill may be much higher than usual but we’ve listed a few of the common reasons below to help you in your efforts to discover why your most recent bill is much higher than the last.
Your Home Isn’t Energy Efficient
An energy insufficient home can often lead to an increased energy bill. Insulation issues such as improperly sealed doors, un-insulated roofs and single glazed windows can allow hot and cold air to escape leading to more energy being used to heat up or cool down your home. Appliances being left to charge or left on standby can also use a huge amount of energy. Some quick ways to cut down on your energy usage:
To reduce the energy used by your air conditioner to cool your home, ensure curtains are closed on sunny days to stop the sun’s rays from heating your home.
On cold days, don’t heat your entire home, only turn the heat on in rooms that are occupied and ensure doors are closed to reduce heat escaping.
Always turn appliances off fully as electrical items left on standby will still use energy.
Lifestyle or household changes that result in changes to energy consumption can often alter gas and electricity bills. Think back to your last bill, has any of the following occurred? If so, they may be the reason why your bill is higher than usual.
You’ve had guests – have you had friends or family to stay since your last bill? It will come as no surprise that more occupants in your home will use more energy which could explain the increase in energy bill.
You’ve bought a new appliance – a new purchase for the home can be an exciting time, but additional electronic goods can also consume more energy than you expected.
It has been unseasonably hot or cold – if the weather has taken a dramatic turn since your last bill, chances are you’ll have been using more energy to heat or cool your home than you were during your last billing period.
There is a Problem With Your Meter
This is unlikely, however if there is a problem with your energy meter it may not be recording your energy consumption correctly which could explain your unexpectedly high bill. If you think your energy meter may be faulty, you can ask your energy retailer to find out for you, however if it turns out that the fault is not the meter your retailer may charge you for having it checked.
You’re not On The Best Tariff For Your Needs
It is not uncommon that both businesses and homes are on energy tariffs unsuitable for their needs. If this sounds familiar and you’re considering switching your gas or electricity suppliers why not get in touch with us at Make It Cheaper? We take the hassle out of switching energy retailers to get the best deal for you.
Looking to save on your business energy bill?
We find savings for 4 out of 5 businesses. See how much your business could save.
It’s now even easier to save money on your household utility bills with very little effort or expense. Not only will you reduce the cost of home electricity but you’ll also improve your green credentials and reduce your carbon footprint. Here are the top energy saving tips from Make it Cheaper
Pay attention to the stars
When purchasing large electrical or gas items ensure you pay attention to the energy rating labels found on all air-conditioners, water heaters, room heaters, fridges, freezers and dishwashers,. These labels use a star system to grade efficiency, they also estimate how much power the appliance is likely to consume in a year. This should give you an idea of the running costs.
Watch the degrees
Choose an air-conditioning system suitable for the size of space you are trying to cool. Set the air conditioner to thermostat to 24 degrees or higher in summer and 21 degrees in winter. Every 1 degree increase in thermostat setting in winter will use 15% more energy. Every 1 degree decrease in summer will use 10% more energy.
Clean or replace heater and air-conditioner filters regularly, following manufacturer’s instructions.
Become a fan of fans
Install ceiling fans as a very cost effective alternative to air-conditioners. Ceiling fans run at a fraction of the price (2 to 3 cents per hour) of air conditioners and can provide a welcome relief on a hot day.
Switch your light bulbs
Using energy efficient light bulbs can reduce the amount of energy used by up to 80%. Incandescent lighting uses 80% more power when compared to Compact Fluorescent light (CFL) bulbs which also last 8 times longer.
Review your fridge and freezer
When purchasing a fridge or freezer, ensure you buy one suitable for its purpose. Over filling or under filling a fridge / freezer leads to inefficiencies and greater energy consumption. Position freezers and fridges out of direct light and defrost regularly to avoid build-up of ice. Check the seals on doors and closing mechanisms are all in good condition.
Maintain gas appliances
Maintain your gas appliances to ensure there is no leakage. Not only is this very dangerous, it will contribute to your home gas bills. Make sure you turn off gas heaters when you are not home as heating empty rooms wastes energy. Only heat areas that are being used frequently. There’s no point heating an area that’s rarely used (storage rooms, cleaning rooms etc).
Insulate!
Insulate the ceiling and walls of your house. This will keep your house retain heat as well as keeping your house cool in the summer.
Looking to save on your business energy bill?
We find savings for 4 out of 5 businesses. See how much your business could save.
Sometimes it can feel like a waiting game for the right time to start searching for a new energy supplier. In fact there are plenty of times when switching your gas or electricity supplier is ideal to ensure you are paying the best available rate. Here are a few times when it’s a great idea to begin looking at switching your gas or electricity suppliers.
At the end of your current contract
If your home energy contract is due for renewal it is the perfect time to begin looking at switching your supplier and comparing tariffs to ensure you are paying the best available rate. If your contract rolls over with your current supplier you may be put on their standard rate tariff, which often won’t be their cheapest. To avoid this rise in your energy costs it is important to compare tariffs and suppliers before the end of your contract, ensuring you have time to switch before your contract rolls over.
When moving home
Moving house can be a stressful time and arriving at your new home to find no energy supply or an expensive bill can really add to that stress. If you’re moving house soon it’s a good idea to begin comparing energy tariffs for your new home early on to ensure you have a gas and electricity supply when you move in and that you won’t be hit with an unexpected bill.
If you haven’t switched in a while
Can you remember the last time you compared energy suppliers? If not, then it’s probably time to check that you’re still on the correct energy tariff. If your household usage has changed or your energy supplier has altered their prices you may be paying more than you should for your utilities.
You just want to make sure you’re getting the best deal
None of us want to pay more than we need to, especially when it comes to monthly bills and outgoings. If you’re taking a look at your personal finances, it can certainly be worth comparing energy costs to see if you are able to get a better deal. It’s worth bearing in mind, however, that if you are still in contract with your current supplier and decide to switch, you may incur a cancellation fee.
If you think that now is the time to switch your home gas or electricity provider to check that you are getting the best deal available, why not get in touch with us at Make It Cheaper and see how we can help. We look forward to saving you money on your household utility bills.
