How Much Energy Does A Business Use?

How Much Energy Does A Business Use?

Written by Deepak Bhagat, In Business, Published On
July 28, 2022
, 15 Views

Your business utilizes all manner of energy – gas, electricity, water, and so on. But the thing is that the energy you use will have an impact on how much you will pay for your bills in the long run. Other factors affect business energy, which we will cover later. For now, we will tackle the basics of business energy and what you can do about it. You can read more on Utility Bidder’s utility guides online to find out more.

No two businesses are alike in terms of energy requirements. Not because you and your neighbor’s business both sell car tires means you use the same amount of gas and electricity. Your infrastructure will be different from your neighboring operation. You will use a varied lighting system, equipment, tools, and workforce to keep your business running. Then again, there is the constant fluctuation of energy prices.

Numerous factors affect the moving of energy prices in the world market. That means you cannot have a clear and fixed price for the gas and electricity you use.

How Much Energy Does A Business Use?

  • A microbusiness uses at least twenty to thirty thousand kilowatts of energy each year. However, some factors impact how much energy your enterprise will take up.
  • An average business uses at least five thousand to ten thousand kilowatts of resources each year.
  • A medium one takes up more than forty thousand kilowatts annually.
  • While a large-scale business will consume at least fifty to sixty thousand kilowatts of energy, including gas and electricity.
  • You also have to consider the scale of your operation. The larger your enterprise’s ranking is, the more resources you will take up in a given amount of time.

Division Of Costs

Looking at the information and other data on your energy bill can be complicated. You might be thinking about what all those numbers and letters mean.

We can divide your energy consumption’s total costs into several sections. Check them out below:

Metering cost

Your business utilizes a specialized meter. You will have to pay for the purchase and maintenance of such a component.

Wholesale cost

You will pay this cost if you are receiving energy wholesale from suppliers, and what happens is that you receive the energy supply in bulk. That way, your business does not run out of resources in the long run.

Use Of System Charge

Several energy distributors in the country have a license to conduct resource distribution. These distributors are part of the DNO or distribution network operators. You will pay this cost if your supplier is a part of the DNO.

VAT

VAT or value-added tax is another expense in your bill with a twenty per cent charge. But the neat thing with value-added tax is that the more you spend fewer resources, the lower it goes.

CCL

CCL or climate change levy is a type of tax involving renewable energy. As with the case of VAT, how much you pay depends on the renewable energy you use. Your CCL will be higher if your enterprise does not utilize renewable energy. That is why more and more companies are transitioning to renewable energy. They save on costs, such as CCL, and they also get to do their part in protecting the environment.

In addition, you will deal with the tariff you currently have. Your contract will also dictate how much you will pay for all the gas and electricity you will use for a duration. Get in touch with your contractor should you find any discrepancies and other issues with your bills.

Getting Some Assistance

Since you run an operation, there are instances where you have difficulties dealing with other matters. You have to settle and check the bills, check the inventory, and work on employee matters. You might have no time to focus on analyzing the energy bill. Do not worry one bit.

You have the option to look for assistance from several sources that can deal with the energy consumption cost check. The first option is to hire a virtual assistant specializing in bookkeeping and record tracking. They will deal with the energy bill, emails, and other matters. So you can focus more on running the business without issues.

The second option you have is to hire a utility bidder. A utility bidder is a service you can get from online sites and organizations. What happens is that a utility bidder will take care of other things, much like how a virtual assistant would on your behalf.

But unlike a virtual assistant, a utility bidder offers more energy-related services your business can benefit from overall. They will also look for several opportunities for your business to grow.

Considering Renewable Energy

Renewable energy is getting more and more popular among business owners nowadays. This type of energy costs less since the source is natural. In addition, you will tend to emit fewer greenhouse gasses and other forms of pollution.

Plus, your business will attract more potential clients. Clients and individuals appreciate any operation that utilizes renewable energy. Transitioning to it will be an absolute win for your industry.

Better get in touch with your energy provider. Inquire if they offer renewable energy sources. Check if your contract also allows you to make the transition. Since not all energy providers tend to shell this type of tariff for their clients.

Is It Important To Take Note Of The Energy Bill?

Absolutely. Checking your gas and electricity bill allows you to find out where your business should adjust energy-wise. Doing so also lets you determine if you are paying too much or too little for that energy contract. That way, you can take all the necessary actions to reduce costs.

The Last Word

Business energy might seem too complicated for other people. But the truth is you only need to look at it to find out it does not require much to understand. You can have other workers handle your energy costs. But it is paramount you take a look at it as well. Doing so allows you to adjust certain aspects of your business.

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