Busness V Private 20% electricity rip off

icewombat

My current supplier is charging 8.2p a unit + 5% Vat IE 8.61p in total

I am a large user, living in a fram house with lots of outbuildings etc so use 20k units a year and have little chance of reducing it (our the pervaious owner was using 35k units a year and we have installed as many energy saving measures as possible).

Most suppliers will offer me around 6.8 per unit if i switch to busness tariff.

BUT I then get hit for 5% climet change levy and 17.5% VAT! IE 8.39p a unit in total

OK this gives me a saving of 0.22p a UNIT!

My question is why is the private unit costs just above the busness unit cost after tax?

Why as a personal client am I paying 1.4p per unit or 20% more than a busness client for the SAME electricity, paid for via the same direct debit?

There are NO climet levies for private users so why such a big mark up.

MrLazyBones

What % of your property / business do you use for domestic purposes? - You may be able to reduce the VAT rate for your domestic consumption

KimYeovil

How much do they charge a business client who only uses 3300 units per year?

Fire_Fox

Buy an air or ground source heat pump or wind turbine.

spiro

Business customer are tied in to 1, 2, 3, 4, 5 year contracts which they cant get out of whereas as a domestic customer you could switched every month. By tying business customers in it allows them to better forecast how much power they need to buy.

Also as a business customer you loose most of the protection i.e. 1 year back billing, that domestic customers get.

If you should be on a domestic or business tariff for elec depends on what the majority (over 50%) of the elec is used for. If it is domestic you have to remain on a domestic tariff if not you can you on a business tariff.