Getting the Most Out of Your Utility Providers

With the gloom surrounding the global economy, it is essential to take judicious decisions with regard to the consumption of electricity. An unplanned utilisation of electricity will ultimately hamper business prospects due to the sky-rocketing prices that are incumbent with power production. However, by opting for a utility provider that provides the lowest costs for the provision of electricity, the firm will be better equipped to tackle the rising costs of electricity. 

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Two common terms that need to be considered when scouting for alternative utility providers are the firm’s total electricity consumption expressed in kilo-watt hour and the peak consumption. If a close inspection of the utility bill is undertaken, the consumer comes to the realisation that the majority costs are closely related to the aforementioned terms. Thus, to compare business electricity prices that are rated by the different utility providers, a deep understanding of these two terms are vitally important. This will then enable the business owner to make the economically profitable decision of opting for the utility provider with the lowest price per kilo-watt hour usage and during peak consumption.

Due to the inherent nature of the power production industry, it often necessitates the consumer to read the minutes of the utility plan. The presence of hidden costs such as power loss costs and transmission costs, for which the consumer is charged without his/her awareness, are incessantly eating up the profitability of the business. Mismanagement of electricity, and a lack of awareness of the utility charges levied on the business’ electricity consumption, thus ranks highly amongst the factors that contribute to an appreciable decline in profitability.

Business owners can also take advantage of a quantity unknown to most: the use of an interval meter.  A large majority of the businesses are charged according to the total consumption, and not according to the time per use method that households are billed under. Under this method of billing, the firm is paying the weighted average of the electricity consumption in the entire area. As such, even though the business owner has taken the necessary steps to curtail rising electricity costs, the firm is still charged a relatively high rate due to the high peak hour power consumption of the surrounding neighbourhood. By talking to the energy advisor of the retail utility contractor, an interval meter can be installed. The interval meter tracks the electricity consumption per hour of usage or in some cases at 15 minute intervals. Thus, having an interval meter installed will lead to charges being applied that are in compliance with the location’s rate for hourly usage. Through the implementation of the interval meter, a lower cost for electricity consumption is effectively in place for the business.

To compare business electricity prices and to scout out the cheapest possible option is a herculean task. However, equipped with the right tools and research, it is feasible to obtain the best value for money when it comes to electricity cost. Through the application of cost cutting measures, the revenue and profitability prospect of the business experiences a massive boost.

Abbie is a freelancer writer. She has researched a lot regarding the effects of global warming. She knows how to compare business electricity prices and can help businesses find cheap business electricity rates.

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