Do Businesses pay less for energy?

July 31st, 2020
Do Businesses pay less for energy?

Yes, on average businesses usually save a penny per kWh. Businesses benefit from economies of scale with their energy provider. The more you use, the cheaper it becomes. We are not going to get involved with the issues that surround giving cheap energy to big business, but the simple answer is yes, business do pay less for energy than you or I would as a residential user.

Commercial energy use

The Chartered Institution of Building Services Engineers believes that the average energy cost per square metre in an office is around £6.50 annually. Working with these averages, a commercial building uses around 46 kWh of electricity per square metre, which is similar consumption to a home.

The biggest culprit for energy use in commercial premises is the HVAC system, whereas in a UK home, appliances such as tumble dryers are at the top of the list. Whilst in the home, energy-hungry appliances can be limited in their use to save electricity, the HVAC systems at work cannot just be turned off, for the sake of staff comfort and productivity.

With most offices using low energy lighting and modern computer monitors using a fraction of the energy that their predecessors used, other than the HVAC system, the next most serious culprit in an office is the kettle, but limiting its use could lead to a mutiny in most offices!

How can businesses reduce energy costs?

Generally speaking, business electricity unit costs are around a penny cheaper per kWh than for residential customers, with larger-scale businesses able to save around 5%. If your rates are higher than this, it could be time to check out your options for a business energy switch.

Why not check out our comparison tools, with a list of cheap business electricity suppliers, to see how much your business could save without having to limit your HVAC use, or face a mutiny in the company kitchen.

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