Key Differences Between Business Energy And Domestic Energy 

The energy heating your house at night and the energy powering your neighbor’s business during the day comes from the same supplier. However, business and domestic energy bills have some very important differences.  

So what makes business energy and domestic energy different? Why do energy suppliers have different prices for business and domestic energy? In this guide, we’ll discuss some key differences between business energy and domestic energy. 

Prices

Prices between domestic energy and business energy differ on many levels. Business energy contract rates are lower than domestic energy rates. Because energy prices tend to fluctuate drastically, an organization makes sure they are fixed with a certain business energy contract.

Sticking to one fixed contract will protect an organization from market fluctuation, even if there is an increase in price the organization won’t be affected by it. The benefits of a fixed contract rate also include better budgeting – as an organization will have an estimate of how they have to pay for energy each month.

The energy cost for business may seem additionally cheap because the per uni cost of energy is comparatively cheaper for business customers. Businesses pay a lower per-unit price for energy because they buy a large volume of energy. The larger the business, the lower the unit rate. 

Business energy consumers are also able to negotiate and choose contracts based on their needs. Domestic customers aren’t offered such tailored contract rates.  

Contract Term

Domestic energy contracts are usually never fixed, they are on changing terms with no definitive end date. Domestic customers can switch their energy suppliers anytime they want. Since the domestic customers do not have a fixed-term contract, they are affected by unit rate fluctuation month to month.

On the contrary, business contracts are always on a fixed-term. They are usually on a 1-5 year contract. The unit price doesn’t change and stays constant at the agreed price according to the contract.

Business customers don’t have the option to cancel their contract early unless they need to leave the place which will void the current contact. Rolling contracts do appear for business customers but these are usually much higher rates.

 It is essential to compare business energy prices to get the best fixed-term contracts. You can click here to compare business energy and get the perfect business energy deal according to your needs. 

Meter Type

Businesses consume a large amount of energy compared to domestic customers. therefore, suppliers record energy usage differently. Business electricity meters and domestic electricity meters are also different. They have a unique meter profile. How the supplier reads the meter is affected by the first two digits of the meter number. Business meter profiles are  03, 04 or 00, while domestic profiles are 01 or 02.  

Conclusion

Business energy contracts are more complex than domestic energy contracts  Finding the best business energy deal can be an overwhelming and time-consuming task. But simply switch is here to help you out. Simply witch will guide you through the price comparison process and also secure the best business energy deals for you.