Commercial Power

What is Commercial Power?

Commercial power refers to “energy” delivered to enterprises by an independent power producer. It’s quite similar to how energy powers your home. Both gas and electricity would typically be interpreted as power. Except, we’re expressly talking about commercial use. Without such power, all commerce would reach a standstill. For the sake of this explanation, let’s say these producers provide the “coffee beans” for your business.

Power. Energy. Drive.

We all need something to get us out of bed in the morning. For most, it’s the pot of coffee. But your business can’t run on coffee, and if it does – by all means, indulge us. So, if it can’t run on coffee, then what does power it? What gives your business its energy and drive to keep your cashflow coming?

Without energy, your business has no drive.

Without drive, your trade has no power.

Without power, you have no business.

Now because of this, your power is ultimately in the hands of the provider. Which is a dangerous tight rope to walk. Why? Because you’re having to rely on the good graces of these power providers to deliver a fair trade. However, these providers generate and sell their beans with one goal in mind – profit. See, like you, they’re in business. Not only that, they’re fiercly competitive. Some will also take advantage of established tariffs with their customers. So keep your wits about you and understand how messy things can get.

How should you navigate commercial power?

Your business needs power to make money. Yet a good portion of this money goes back into your power. You’re in a catch-22 situation and it can be a tough area to navigate. Especially if you don’t know what you’re doing. Yet, it’s a vital necessity. You could scrub up on the whole commercial power trade. After all, knowledge is power – but this is a thriving industry teeming with small print. There’s a tremendous amount of ground to cover. So, if you want to claw back savings and make sure the power of your business remains in your hands, consult an expert.

This is where Power Audit UK steps in.

With over 23 years of expertise in the industry, Sean Taylor established Power Audit UK. He had seen a drastic and rapid rise in problem accounts in recent years and had to put his foot down. Sadly, some suppliers are not willing to assist their clients. Some won’t even comment on their own poorly constructed contracts. This is where Sean offers expertise in the ever-changing climate of commercial power. His knowledge is your power. Through his bill validation service, Sean is more than happy to take a look at your contract. He can determine whether you’ve been charged excessive amounts for what you’re using.

Different Contracts

Much like domestic energy suppliers, your business will be offered different tariffs. Some might seem welcoming but could well bring your business to its knees in future. So, what tariffs are there?

Deemed/Default Tariffs

Unless there’s a prior agreement with your supplier, this tariff is automatic. It will initiate upon you moving into new premises. This automatic tariff can take most by surprise and can be considerably more expensive. Make sure you have an agreed contract in place. One that’s suited to your business.

Fixed Tariffs

Generally considered the cheaper option, these tariffs are a fixed fee. They will remain that way for the duration of your contract. However, suppliers tend to only offer long-term contracts which have automatic renewals. These later renewals are prone to price escalations. Also, if you find a better deal in the meantime, you may as well kiss it goodbye. There are hefty early-termination fees which would render that tantalising deal somewhat pointless.

Flexible Tariffs

This is a great tariff for a larger business. The tariff is based on your predicted energy use and peak usage – when random energy spikes occur. Your business can bulk buy energy which it uses as a physical commodity. If it buys too much energy, it can simply sell any unused energy back to the grid. Cut out the middle man.

Green Tariffs

Unfortunately, this tariff is on the expensive side. Renewable sources, such as solar and wind energy are not yet as widespread. Suppliers are seeking to change this but for the time being the cost is much steeper. A benefit of this tariff, however, is that you can advertise your environmentally friendly approach to energy.

Variable Tariffs

With this tariff, no two bills will be the same. Your supplier will expect you to only pay for the energy you use each month. Which sounds good, right? Not exactly. The rate of pay is higher than that of a fixed tariff. Plus, you’ll have no form of protection against the market’s fluctuations. Trust us when we say that the price of gas and electricity can vary wildly.

His knowledge is your power

Sean’s cost-cutting abilities have helped hundreds. A large number of charities, associations and groups have taken up with him to keep their costs to a minimum. For example, one expense that power companies conveniently overlook is their VAT charge. Through Power Audit UK, Sean has investigated numerous businesses. He’s been able to see about returns on such needless expenses, saving his clients a small fortune.

However, Power Audit UK’s expertise doesn’t end there. Sean’s also undertaken green solutions that not only save his client’s energy usage but also the planet too! Team up with an expert to bring you professional advice and guidance. Should you want an evaluation, we can implement such changes together.

To learn more, please check Power Audit UK’s services page or put us to the test below!

Super Efficient

They have looked after my Nursing and Care homes for the past 8 years. It’s been hard to find someone that you can trust in a sea of sharks!! I have recommended their services, good luck to them.

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