An Overview of Business Energy

еса business energy T 01246 290 490 W ecaBusinessEnergy.com buy better, use less An Overview of Business Energy Business energy differs from domestic energy in various ways. The main ways the two types of energy differ are the types of contracts offered. In this handy guide we cover the contracts available to business energy customers. Types of Business Energy Contracts • Fixed term - Charges a set price per unit (kWh) for the duration of the contract. This does not fix the total amount that you pay each month, which will vary according to your usage. Variable-rate - Unit rates are linked to market activity, meaning they may fluctuate throughout the duration of your contract. Deemed rate - If you let your current tariff end without switching supplier or arranging a new deal, you'll be placed on one of these rolling, out-of-contract tariffs, and pay your supplier's most expensive rates. Rollover - A contract that is used when no alternative has been agreed before your current contract's end date. Rates are usually among the supplier's most expensive. • Flex - Businesses can buy blocks of energy from the wholesale energy market. A flexible contract allows a business to either sell blocks of energy they have not used back to the supplier. Or, if they require more energy than they have bought they can purchase extra energy in smaller blocks. • Pass Through - Energy prices include a range of third party charges. These charges consistently increase annually by varying amounts and although sometimes absorbed by the supplier they are usually "passed through" to the end user. Choosing this type of contract is dependent on your risk tolerance. Energy Usage Different business will use different amounts of electricity depending on their size and sector. Below you can see a breakdown of average energy usage for different sizes of business. Electricity Business Size Low End Usage (kWh) High End Usage (kWh) Micro Business 5,000 15,000 Small Business 15,000 25,000 Micro Business 25,000 50,000 Gas Business Size Low End Usage (kWh) High End Usage (kWh) Micro Business 5,000 15,000 Small Business 15,000 30,000 Micro Business 30,000 50,000 Group Purchasing Another way to save money when buying business energy is to participate in group purchasing. Group purchasing is when multiple businesses group together to buy energy rates only previously available to high volume users. ECA's Energy Basket service allows you to participate in group purchasing. ECA Business Energy provides an opportunity for your business to join hundreds of organisations, to buy energy together. ECA Business Energy offer a business energy review service. This service begins with an appraisal of your current approach to business energy. ECA Business Energy will complete a full business energy review on an agreed sample of your portfolio and present the findings and recommendations to ensure you buy better and use less. For more details about ECA Business Energy's business energy review services, please visit: https://www.ecabusinessenergy.com/services/business-energy-review/ еса business energy ECA Business Energy ECA House 1 Dronfield Court buy better, use less Civic Centre Dronfield S18 1NQ T 01246 290 490 W ecaBusinessEnergy.com