Value Added Tax (VAT) is a tax that is applied to most goods and services in the UK, including business energy bills. The standard rate of VAT is 20%, but there are a number of discounts and exemptions available to businesses, which can help to reduce the amount of VAT you pay. Not only is this a useful piece of information for small businesses to know, it may also mean more money going back into your business rather than to the dreaded tax man!   VAT on electricity for businesses Much like any other goods or services you access as a business, you will pay VAT. The current standard rate of VAT is 20%. However, since the government wants to offer as much incentive to businesses as possible to reduce their energy consumption and improve their energy efficiency, such discounts and exemptions of VAT payments can be applied. This is of course, subject to eligibility.    If you are eligible for a discount or exemption on your electricity VAT, this should be applied automatically by your supplier. However, you may need to confirm this at the time of approval. Ensuring that all parties are aware of the reduced fee. Keep an eye out on your bills for what you are paying. For more help understanding your bill click here.    Discounts and exemptions available to businesses from the UK government   The Climate Change Levy (CCL) exemption: This exemption applies to businesses that use certain types of renewable energy, such as solar power, wind power, and biomass. Fuel Duty: If you use a generator to power your business, you may be able to reclaim some of the Fuel Duty that you pay on the fuel you use. The De Minimis supply: If your business uses less than a certain amount of energy each year, you may be eligible for a reduced rate of VAT of 5%. The de minimis limits are 1,000 kWh of electricity per month or 4,397 kWh of gas per month.   Signing a CCA (Climate Change Agreement)  Signing a Climate Change Agreement (CCA) as a UK business comes with both obligations and benefits, primarily in the form of potential financial savings and reduced carbon footprint. Here’s a breakdown:   What is a CCA? A CCA is a voluntary agreement between your business and the Environment Agency. In exchange for meeting specific energy efficiency and carbon reduction targets, you receive a discount on the Climate Change Levy (CCL), a tax added to your electricity and fuel bills.   By signing a CCA you are agreeing to making improvements to the energy efficiency of your business, reducing your energy consumption. This provides you with the opportunity to receive discounts of up to 90%.    It is important to remember that discounts and eligibility for discounts is always subject to change as per the government’s guidelines. To ensure you are always up to date with the latest information regarding discounts and exemptions on your business energy bills, read the GOV.UK site.  For more energy saving tips and advice on how to improve the energy efficiency of your business premises, check out more of our D-ENERGi blogs.

Every business recognise the importance of evaluating its overhead expenses on a regular basis and one effective way for reducing business energy costs is to look at your business electricity rates, energy consumption and improve the overall energy efficiency. However, this is easier said than done because the market is a competitive one with lots of business energy suppliers offering deals that suit the business’s size and annual energy usage. It is crucial to compare the available rates from alternative energy suppliers. Indeed, regardless of your business’s size, even a ‘one-man band’ operation should be able to find a new electricity supply and save several hundred pounds from their business electricity bill every year. Obviously, small and medium-size firms will be able to save substantially more while very large business will be able to deal directly with a energy supplier and not pay much more than wholesale rates. New business electricity supplier for your business A new business electricity supplier for your business will need to understand what your average annual usage of electricity is in kilowatt-hours, expressed as kWh. For example, a micro-business will be using no more than 10,000 kWh of electricity but a small business might be using between 10,000 and 30,000 kWh. The business electricity supplier will be charging differing prices per kWh for a micro-business and small business with these prices expressed in pence – the larger the user, the cheaper this price will be. There will also be a standing charge which is paid on a daily basis to help pay for the network that delivers the energy to your premises so a micro-business could. Calculating your business electricity bill So, when calculating your business electricity bill you will need to be aware that you could find an energy supplier charging a lower average price per kilowatt hour but they might be charging more for your standing charge. Essentially, this means you may not be making any saving whatsoever so you will need to understand these charges when discussing switching to a new business electricity supplier and confirming the new energy contract. Before you do speak with a potential new business electricity supplier it might be a good idea to get an idea of what the market rates and your energy usage might be for your business and use this information when negotiating for a cheaper rates. A good way to find an average market price for a firm of your size and annual energy usage is to use a business comparison website which will give you an indication that you can then use. Alternatively, if you want to understand business electricity rates and find a cheaper energy supplier then the easiest and simplest way is to speak with the D-ENERGi team to see what they can offer you. We always available to provide advice and assistance on tailormade solutions, improve energy efficiency and reduce your business energy prices. Get a free quote from us or call us on 0800 781 7626 today for more information.

The installation of new half hourly electricity meters for larger electricity users means business owners can save money on energy bills. A half hourly electricity meter, also known as an HH meter or 00 meter is a special kind of meter that is connected to the business electricity supplier via a phone line. This means the half hourly electricity meter can automatically send its meter readings every 30 minutes to the energy supplier – which is why it’s called a half hourly electricity meter. This also means there’s no need for a business to take meter readings and then submit them and the regular updates of your energy usage also enable a potential supplier to see when your peak periods of use are and tailor their offering to meet your energy needs. It’s this extra level of detail which should lead to substantial savings and lowering your energy bills.   Half hourly electricity meters being used by larger businesses However, when we talk about half hourly electricity meters being used by larger businesses, we tend to mean large offices and factories; they tend to have an electricity usage of at least 100,000 kWh of electricity per year. We should also point out that all large users of energy, including department stores and manufacturers, will have these half hourly meters installed because it’s now the mandatory requirement. Indeed, these half hourly meters are sometimes referred to as P272 meters which are the relevant reference for those who want to find out more, and Ofgem is keen for more businesses to have smart meters installed. While it’s easy to switch business electricity suppliers, the process for those who have half hourly suppliers is a little bit more complicated than switching a regular contract but there are experts in D-ENERGi available to help you do this.   The best half hourly electricity prices This complexity should not put you from searching the market but you can contact us, provide the information and we can tailormade the best half hourly electricity prices for you. We offer fixed price contract so that you know precisely how much you will pay every month and can budget the energy costs accordingly. We also offer a choice of billing options that suit the needs of your business and can pay at your convenience.   The Account Manager in D-ENERGi will arrange for quotes ensuring you pay the lowest wholesale cost with excellent customer service. We will provide any additional information that can save your business money on energy bills. We then take care of the switchover process which can range from between four weeks and six weeks, depending on when your contract is due for renewal. It’s also possible that by using half hourly meters, your business may be able to ‘group buy’ your electricity even if the meters are spread over various premises. For more help and advice about how to save money with business half hourly electricity suppliers, then speak with the expert team at D-ENERGi. For more energy saving tips and advice on how to improve the energy efficiency of your business premises, check out more of our D-ENERGi blogs.

For large, small or micro-businesses, looking to reduce their energy costs then understanding how to compare business energy tariffs. Just as we find when looking at household energy suppliers, the tariffs available for a business can vary hugely. This means conducting more research and calling a potential business energy supplier to find their best offer on business electricity and gas. However, the one thing to remember is a business can only compare their business electricity and gas tariffs separately between business energy suppliers since they cannot get a dual fuel deal like they can for their home. It should be remembered though that there is a substantial savings to be made from switching business energy suppliers and depending on energy usage, some businesses could save hundreds of pounds and indeed several thousands of pounds. Compare business electricity and gas rates However, when a business wants to compare business electricity and gas rates with various rivals, it’s not that easy since the energy supplier will need to offer a bespoke deal. The process of finding low energy bills not only sees lower overheads but it should be done as a matter of routine. This has been underlined by a survey from the Competition and Markets Authority which reveals that 40% of small and medium-sized businesses have not switched their energy supplier in the last five years. More worryingly, 39% admit they have never switched business energy supplier. The survey highlights that many firms in the UK are probably overpaying for their energy and missing out on the huge savings to be made which is an exercise that should be done considering that energy prices are predicted to increase this year. The easiest way to compare business gas and electricity prices Perhaps the easiest way to compare business gas and electricity prices is to understand how the business’s energy bill and consumption is put together; this means understanding the breakdown of the energy unit rate and any standing charges as well. By doing so, the business will then make the process of comparing prices much easier though they should beware of a potential energy supplier offering an estimated annual cost since estimates can vary hugely. For a micro-business, that’s an employer who employs fewer than 10 people, they will know their energy prices because that’s the regulation for the suppliers to meet. Also, energy suppliers may automatically push their customers into a variable tariff contract after the business’s initial tariff comes to an end and have not signed a new contract. One reason for this is that the variable tariff contract is usually much more expensive than a new customer’s contract from the same energy supplier. Comparing business gas and electricity prices There’s no doubt that when it comes to comparing business gas and electricity prices there needs to be plenty of research done. The first step is to benchmark what the market is offering for the business’s energy usage. Again, the business should be wary about any quotes being offered since these will not be a precise offering and they will still need to call or email the energy supplier for an actual energy quote. Once the business has a good idea of what the market offering is and how much money they can save every year, then they should begin calling around other business energy suppliers. Comparing business energy rates Finally, when it comes to comparing business energy rates and the business finds an offer they like, they need to appreciate that once they sign a contract there is no cooling off period. This means they must ensure they are happy and understand the contract before committing to it because they will have to stay with the contract through until the time for renewal arises. The easiest way to compare business energy prices is to contact the experts D-ENERGi who provides the latest deals and tariffs. We will assign our dedicated Account Manager to provide tailormade business energy rates to small and large businesses in the UK, reduce your business energy prices. Switch and save with us, get a quick quote today. For more energy saving tips and advice on how to improve the energy efficiency of your business premises, check out more of our D-ENERGi blogs.