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When you need to find a business electricity supplier, you will need to know the various terms and conditions of the contract. You can then work with a comparison service to find the best deal for your needs. In this article, we will take a look at Suppliers, Tariffs, Contract length, and DUoS.
Tariffs
Business Electricity UK tariffs vary according to a variety of factors. Generally, business electricity is cheaper than domestic electricity. Business electricity is subject to 20% VAT and the Climate Change Levy, but some businesses are exempt. For more information, read the guide to VAT on your business energy bill.
When it comes to choosing a tariff for your business, the best thing to do is look for one that is right for your needs. The default rates are often the most expensive, so avoiding them is crucial. However, if your business is in dire need of electricity, you may end up on a default rate.
The first step in finding the best business electricity tariff is to shop around. Various suppliers offer their own individual rates. Make sure you understand the terms and conditions of the different tariffs so you can find the best option for your needs. Check out how many kWh your business will use on a daily basis. You can also check if your supplier offers a bespoke contract.
Suppliers
When it comes to selecting a supplier for your business, there are several factors to consider. First of all, you should choose one that will not only provide you with the power you need but will also keep the costs down. It is important to choose a supplier that is reputable and offers a wide range of options. Secondly, you should consider how responsive the customer service team is. Thirdly, make sure that your business electricity supplier is partnered with charities.
There are several big energy suppliers in the UK that specialize in business electricity. Some of these suppliers have several different premises across the country. For example, Gazprom is a leader in providing energy to business customers and offers a range of tariffs that are suitable for small businesses, medium businesses, and large corporations. Other suppliers include Opus Energy, which provides 100% renewable electricity and offers fixed tariffs for larger companies. Another big energy supplier in the UK is BES Utilities, which is based in Fleetwood, Lancashire.
Contract length
If you’re in the market for new business electricity, you’ll want to compare contract lengths. Often, business energy contracts have no cooling-off period, so if your contract is due to end soon, it’s best to compare it to another offer. You can also choose to renew your contract or change suppliers if you’d like to save money.
Typically, business electricity contracts are for a certain number of months, a year, or two. Most energy contracts will automatically renew after their initial term, so it’s important to understand the contract’s terms before signing it.
DUoS
DUoS charges are now part of your electricity bill and are invoiced on a p/kWh basis. These charges make up roughly 18% of a domestic customer’s final bill. You can find more information on these charges on Ofgem’s website. These changes will affect you differently depending on your energy usage profile and distribution area.
The P272 changes to the way that businesses are charged under DUoS and TNUoS will affect how much you pay on your electricity bill. Larger customers with HH meters will benefit most from this change. However, consumers outside of London will see their DUoS fixed costs increase, offset by a drop in the DUoS unit cost.
DUoS tariffs apply to customers with a meter of Profile Class 5-8. They also have a capacity charge element, which is based on the customer’s Maximum Import Capacity (MIC), which is assigned by the Distribution Network Operator (DNO).
VAT
Whether your company uses gas, electricity, or both, you should know that you can claim back the VAT you pay on energy bills. The standard rate of VAT is 20%, but if your business uses less than 60% of its energy for qualifying purposes, you can qualify for reduced rates. To claim this rate, you must fill out a VAT declaration certificate, detailing how much of your energy is used for qualifying purposes. You must also submit separate declarations for each energy supplier.
In addition to VAT, you may be charged a climate change levy. This is a UK-specific tax that is aimed at encouraging businesses to reduce their carbon emissions and improve energy efficiency. However, if you have a lower usage than this, you can negotiate a reduction with your energy supplier.