Capacity charges are additional charges that

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At the start of 2008 Ryan Kerrigan Womens Jersey , the body that regulates the business energy industry – Ofgem – produced a series of ‘Nine Key Questions’ a small business owner should ask suppliers or brokers when looking for the cheapest business energy tariffs. The questions were designed to prevent business owners from falling into unethical traps set by commercial energy suppliers and greedy brokers who act in their own interests, rather than their clients.


Our view at the time was that it is a real shame that they needed to be asked in the first place as they demonstrate just how unfair the market for business energy had become. Just reading the questions gives you an idea of how complex business energy contracts can be and why so many businesses unwittingly fall foul of them. However they were only intended as a stop-gap while Ofgem got on with the job of tackling the root causes of the problems. Sadly they are just as relevant today as they ever have been and, worse still, have never been properly promoted by the supplier broker community as was Ofgem’s original intention which Jordan Reed Womens Jersey , in hindsight, was overly-optimistic. So – if you missed them the first time round – here they are again, along with Make It Cheaper’s between-the-lines interpretation to help you understand why the questions still need asking:


1. What is the charge per unit? Are there any fixed or standing charges? For electricity, are there any capacity charges per KVA?


The unit charge – measured in kilowatthours (kWh) – is the most important variable when comparing business electricity or business gas prices. Amazingly they can differ fourfold from one business to the next Josh Norman Womens Jersey , with cheap business electricity prices ranging from as low as 7p for new customers to those being punished on out-of-contract or deemed rates as high as 30p.


Standing charges are applied to most business energy contract and, confusingly, the rates can be given in either ‘per day’, ‘per month’ or ‘per quarter’ depending on who you are getting a quote from. Try and calculate it on a per day basis – so that you can compare prices like for like – and aim for around 15pday for electricity and 9pday for business gas.


Capacity charges are additional charges that only apply to high consumers (those with a meter profile number – also known as an ‘MPAN’ – that starts with 05 Trent Williams Womens Jersey , 06, 07 or 08). KVA stands for kilovoltamperes and is a unit of power required to run industrial machinery. KVAs will differ from user to user and typically range from around 50 to 120 so there will be different charges for each business. The worst case scenario if you are small, but intensive, energy user would be an extra £2 Alex Smith Womens Jersey ,000 per year to your business electricity bill. Also look out for ‘Reactive Charges’ which mean you’ll be liable for further charges if you exceed your KVA.


2. Can the price I pay for energy change during the life of the contract? If so, how will you tell me about this or any other changes to the contract? Are charges fixed or variable? If they are fixed, how long for? If they are variable, which parts may vary?


This question is to warn you that some suppliers or brokers may encourage you to accept a variable Authentic Troy Apke Jersey , rather than a fixed, rate.

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Business gas and electric increasing? perhaps it’s time you switched supplier


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