Business electricity bill seems very high

chesterfield1 · 20 March 2009 at 3:30PM

My wife owns and runs a beauty salon on her own - although there are several rooms there is only one treatment room that is used and there is obviously lighting and heating in that room and the reception area (night storage) used throughout the day.

There is also a single sunbed room which may be used several times a day.

We seem to be getting very frequent bills from British Gas (who have taken over our contract from Bizz Energy who went into administration apparently)and these bills seem to be getting on for nearly £200 per month which seems extremely expensive to me considering the few appliances that use electricity.

Does anyone have any views or experience to estimate what a small salon with 1 employee is likely to consume on a monthly basis?

Thanks

Magentasue · 20 March 2009 at 4:11PM

That's about £6.50 a day - that would be about 50kwh a day on doestic rates over seven days. Is that what the salon uses approx?

How many storage heaters, and are they on Economy 7?

Kilowatthour · 20 March 2009 at 6:03PM

Of the five beauty salons that have contacted us today for business electricity prices... the average rate we've quoted has been 9.24 pence per unit (cheapest was 8.79p) with an average standing charge of 28p/day. The average consumption is 19,000 kWh and so the average annual bill - should they choose to take the rates - is £1944 or £162 a month (including Climate Change Levy). Hope that helps?

chesterfield1 · 20 March 2009 at 8:47PM

That is very helpful - thank you.
I beleive there are only 2 storage heaters in operation and unfotunately don't know if we are on economy 7 (does this apply for business use?)

What is Climate Change Levy?

Magentasue · 20 March 2009 at 9:03PM

Storage heaters and not on Econ 7 - £200 a month seems about right.

Kilowatthour · 20 March 2009 at 9:45PM

What is Climate Change Levy?

A tax of 0.456p/unit charged to businesses on their electricity consumption. It's included in the bill from your supplier. This link has a useful CCL calculator.

Energyman_2 · 27 March 2009 at 5:02PM

A reputable broker will give you a written quotation explaining length of contract / rates etc and should give you at least 2-3 choices and should provide you with a copy of T+C on request.

I would never recommend agreeing an energy contract over the phone - it is so easy to lie to customers - if you ask for a copy of the tape it will undoubtedly beecut to pieces and just the T+Cs and the agreement sent - not the lies and miss-representation.

Insist on the broker coming out to visit your premise - what does a salesman in Bombay or Blackpool know about your business - you are just a name on a computor screen !

1carminestocky · 27 March 2009 at 5:57PM

Energyman wrote: »

A reputable broker will give you a written quotation explaining length of contract / rates etc and should give you at least 2-3 choices and should provide you with a copy of T+C on request.

I would never recommend agreeing an energy contract over the phone - it is so easy to lie to customers - if you ask for a copy of the tape it will undoubtedly beecut to pieces and just the T+Cs and the agreement sent - not the lies and miss-representation.

Insist on the broker coming out to visit your premise - what does a salesman in Bombay or Blackpool know about your business - you are just a name on a computor screen !

Wouldn't a 'reputable broker' advise not getting involved with ANY min. term contract whilst we are in the midst of a falling market?

Energyman_2 · 28 March 2009 at 4:06PM

1carminestocky wrote: »

Wouldn't a 'reputable broker' advise not getting involved with ANY min. term contract whilst we are in the midst of a falling market?

It is an option that could be offered - however the rates would be far higher than for a contracted deal. The only suppliers that I deal with, that offer this facility are UWDC and their rates are almost 3p kWh worse than the best deals around. It may be possible to get a rolling contract by going to a supplier direct, but most suppliers 'deemed' rates are even worst and I'm not sure they would allow a customer to switch to that product.

A one year contract would probably be the best choice in a falling market - though be careful not to get 'rolled over' (until this is banned!)

Businessgirl · 30 March 2009 at 12:33PM

I have to agree with EnergyMan on this. However, there is now the option of going through an online business comparison site, that does offer full terms and conditions, answers all of ofgems questions on each contract and gives everything including minimum term in black and white. When you agree online, you can be sure that you have not been sold into anything, even face to face. You can be sure that you make the best decision, for your own business, with instant, accurate information. You should not agree to any verbal contract, even if it is a comparison site calling you back to offer you the 'best deal' available. This is hardly ever the best deal.