The business gas prices can vary greatly. This is because every business has got its own needs, so it is hard to provide a similar cost to everyone. However, you can cut down and take control of the cost by looking at the things that can help you save money on standing charge rates and price per kWh unit.
Standing charges -what is it?
The amount you pay at a daily rate to your gas provider for having the gas supply is the standing charge. A standing charge typically includes the cost of your gas supply pipes, meter readings, and maintenance.
What is the reason behind the variation in Standing charges?
Standing charge varies in hundreds over the year, depending on the amount of gas you use. So, it is essential to research before signing a contract with the gas provider.
Taking out time to look over the stats would ensure you get the best deal for gas supply. So, if you use a low amount of gas, then paying a lower standing charge is worth it.
Is the zero/no-standing charges contract useful?
Zero charges and no standing charges are two aspects of the same coin, meaning you don’t have to pay a standing charge for the gas supply, but you only need to pay for the gas unit you used. Sounds relaxing?
Price Per Kilowatt Hour (kWh)- what does it mean?
The unit used for the measurement of energy is kWh. You can take benefit from this by understanding and acknowledging the amount of gas used in your business. With this, you can compare which band you are in with the competitors and can check up on your different suppliers and see who offers the best business gas prices per KWH to you.
What is the reason behind the varying cost of kWh?
Several factors affect the price of kWh, including supplier source, transport cost, gas use, current business gas rate, supply system cost, and market-rate, as stated in the contract agreement. They can also depend on the location of your business.
Results of our Research
Our team at Committed Utility Solution (CUS), after having a conversation with hundreds of business owners every day has found how different the variation is in the standing charges and kWh charges.
Firstly, let’s discuss the standing charges of the ten business firms we interviewed for our research. In research, we found that there is a difference of 163p a day, which would cost a business firm a £594 standing charge over a year.
Moving forward to kWh units, we found that there was a difference of 2.456p. For instance, let’s consider your business on an average uses 40,000 kWh units of gas, meaning you are paying 5.235p that would cost you about £2,094 in a year.
The stats have made the result clear. If you look around and search for the best deals on standing charges and kWh units, you can save thousands in a year and vice versa.
Searching for gas quotes is challenging. But now, as you have slightly more knowledge about how a gas company charges you for the gas supply, so you can take charge of it.
Committed Utility Solution is here to provide you with the facts that would help you save money. It never hurts anyone to look around for better deals. No one knows what one smart switch can help you save.