Business electricity - quoted 71p per kWh - is this normal?

Anomaly_2

Hi all,

So I've just bought a small unit to use as an office and for storage and was quoted by EON (the current supplier), 71p per kWh, I thought this was extraordinarily high as I thought business energy was meant to be cheaper than residential. After speaking with Bionic they said what EON had quoted me was cheaper than anything they could, but it still sounds way high. Is this normal for business energy?

Many thanks

DeeQS

Opposite… Business energy is higher than residential as it’s not covered by the price cap.

Businesses have been burdened with rates closer to the true cost of supply recently.

peter_the_piper

I get the impression that businesses are paying for the lower domestic cap. It can't last long with lots of businesses forecast to close because of this.

billy2shots

I'm in the same boat with gas and electric. 

I'm hoping we will get some news this week on how the cap 'scheme' will play out for business owners. 

Apart from a cap for 6 months (Vs 18 months for residential) no further details have been announced as far as I can see. 

macman

Residential VAT: 5%.
Business VAT: 20%.
There's no sign that the VAT will be reduced on either.

wrf12345

I am surprised we have not heard stories of people running businesses from home suddenly finding themselves switched over to business based electricity...

noitsnotme

macman said:

Residential VAT: 5%.
Business VAT: 20%.
There's no sign that the VAT will be reduced on either.

I’m on a business tariff with British Gas Lite and only paying 5% VAT.  Wonder why they’re not charging 20%?

Robin9

noitsnotme said:

I’m on a business tariff with British Gas Lite and only paying 5% VAT.  Wonder why they’re not charging 20%?

Have you got a Charity exemption ?

noitsnotme

Robin9 said:

noitsnotme said:

I’m on a business tariff with British Gas Lite and only paying 5% VAT.  Wonder why they’re not charging 20%?

Have you got a Charity exemption ?

No, we’re not a charity.  It’s a limited company and the account is in the company name so it can’t be mistaken for a personal account.  I think BG Lite are business providers only anyway.

MattMattMattUK

macman said:

Residential VAT: 5%.
Business VAT: 20%.
There's no sign that the VAT will be reduced on either.

The vast majority of businesses will be VAT registered so the VAT on energy for businesses doesn't really matter.

Astria

I've seen business rates on fixed tariff 1 year being 52p/kWh, but that was before September and had quite high standing charges in excess of £1. I'd expect these have gone by now though.

71p/kWh seems pretty cheap now in comparison.

But, you can get help as there's a package of benefits on the way for businesses.