Did you know that just the costs of getting your water, gas, or electricity from the source to you could make up over 50% of your utility bills? The cost of production when it comes to your utilities needs to be recovered by your supplier, and, as a result, you could be paying a lot of money for just the privilege of having a supply, regardless of how much you actually use.
Why Switching Matters
When it comes to paying the right amount of money for your business utility supply, you should only be paying what is fair. Regularly switching suppliers means that you will always be getting the best deals on your business electricity prices, gas prices, and the best deals on your business water prices.
Here are four secrets of your utility bills that you should know about before you sign up or switch to a new supplied. Armed with this knowledge you can always be assured you have the best price.
Operations Charges
This type of charge usually relates to the operational cost of supplying you with your energy supply. Depending on the type of utility, the operating costs could cover anything from pipes to wires, regulatory costs, upkeep, maintenance, and even networking.
You will likely not have any control over the ‘operational costs’ part of your bills, but it’s something to bear in mind that just because that part of your bill is lower, it doesn’t mean you are getting a good deal. If your supplier is cheaper because they are cutting corners, an outage, as a result, could end up costing your business money instead.
Wholesale Prices
As annoying as it is for an end-user like you, the cost of utilities does fluctuate at a wholesale level, and more often than not, these price increases (and, rarely, decreases) are passed onto you as a consumer.
As a consumer, it’s important that you keep an eye on what is going on in the wholesale markets and challenge your current supplier of utilities and energy if you don’t think you are getting a fair deal when there is a drop in the wholesale price.
Levies and Initiatives
This can be a difficult section of your energy or utility bill to understand, and sometimes there aren’t any deals and initiatives that your suppliers can take advantage of. If you have switched to a greener energy or utility supplier, for example, it’s likely that they may be entitled to claim some of the greener supplier discounts available to them.
On the consumer side, you may be able to take advantage of government-backed grants or levies to help you pay for your energy and utility bills if you switch to a greener supplier.
Transportation Costs
Alongside the operational costs of getting your utility supply to you, there is also the cost of distribution and transportation. The method of physically getting the energy you use to your business or the water that you will use to your business safely, efficiently, and at the right flow amount can vary from company to company and can change the price.
