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

noitsnotme

Astria said:

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.

I’ve just realised how lucky I am.  Business rate with BG Lite, fixed until Jul 2024… 16.99p/kWh and 30.73p standing charge!  Now I just need to figure a way to transfer power from the office to home!

littleteapot

noitsnotme said:

Astria said:

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.

I’ve just realised how lucky I am.  Business rate with BG Lite, fixed until Jul 2024… 16.99p/kWh and 30.73p standing charge!  Now I just need to figure a way to transfer power from the office to home!

if you drive to work anyway get a few 12v 200Ah batteries  and an inverterin the boot. Not sure whether the benefit would outweigh the increase in fuel consumption though!

mjm3346

noitsnotme said:

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%?

Depends on usage there is a point where it will switch up to 20%, details from one site (there are a couple of other exemptions as well)

You have a ‘low’ usage of energy: Low energy usage is usually defined as using less than 1,000kWh of electricity every month (33kWh a day), or 4,397kWh of gas (145kWh a day)

Gas and electricity tariffs for businesses automatically have VAT added to them, and while they technically count as a business-to-business purchase, you won’t be able to claim the tax back.

https://www.moneysupermarket.com/gas-and-electricity/business-energy/a/business-gas-electricity-vat/

noitsnotme

littleteapot said:

noitsnotme said:

Astria said:

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.

I’ve just realised how lucky I am.  Business rate with BG Lite, fixed until Jul 2024… 16.99p/kWh and 30.73p standing charge!  Now I just need to figure a way to transfer power from the office to home!

if you drive to work anyway get a few 12v 200Ah batteries  and an inverterin the boot. Not sure whether the benefit would outweigh the increase in fuel consumption though!

I’m not sure if I’d recoup the cost of the batteries and inverter.  Need to do some sums.

noitsnotme

mjm3346 said:

noitsnotme said:

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%?

Depends on usage there is a point where it will switch up to 20%, details from one site (there are a couple of other exemptions as well)

You have a ‘low’ usage of energy: Low energy usage is usually defined as using less than 1,000kWh of electricity every month (33kWh a day), or 4,397kWh of gas (145kWh a day)

Gas and electricity tariffs for businesses automatically have VAT added to them, and while they technically count as a business-to-business purchase, you won’t be able to claim the tax back.

https://www.moneysupermarket.com/gas-and-electricity/business-energy/a/business-gas-electricity-vat/

That explains why we’re on 5% VAT then due to our very low usage.  I didn’t realise it’s not claimable though.  I use Xero accounting so assume it does all that correctly.

mjm3346

noitsnotme said:

mjm3346 said:

noitsnotme said:

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%?

Depends on usage there is a point where it will switch up to 20%, details from one site (there are a couple of other exemptions as well)

You have a ‘low’ usage of energy: Low energy usage is usually defined as using less than 1,000kWh of electricity every month (33kWh a day), or 4,397kWh of gas (145kWh a day)

Gas and electricity tariffs for businesses automatically have VAT added to them, and while they technically count as a business-to-business purchase, you won’t be able to claim the tax back.

https://www.moneysupermarket.com/gas-and-electricity/business-energy/a/business-gas-electricity-vat/

That explains why we’re on 5% VAT then due to our very low usage.  I didn’t realise it’s not claimable though.  I use Xero accounting so assume it does all that correctly.

Had one high 1/4 ages ago so the 20% kicked in (quite a surprise as I hadn't checked it out first)

billy2shots

My business electricity contract ends in January. I'm currently paying 28p per kWh. 

My Gas contract is up next month. I'm currently paying 2.4p per kWh. Was quoted 18.5p a month ago but don't know what it will be now. I use 80,000 kWh of gas a year 😭

The increase to gas alone stands at £13,000 a year. I'm praying for some positive business news this week. Last week's announcement was short on detail. 

Robin9

billy2shots said:

............. I'm praying for some positive business news this week. Last week's announcement was short on detail. 

So am I - I am interested to see what is offered in my 12 month contract due Oct 1   when there is going to be a review in 6 months

Swipe

wrf12345 said:

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

Don't go giving them ideas

billy2shots

How is everyone finding business energy costs/quotes at the moment?


My Gas contract 80,000 kWh per year is up for renewal.

5 calls and 5 hours on hold with SE Gas, I'm unable to get any infot from them. 

A Broker has just quoted me 6 months (government backed scheme length) at

13.5p per kWh

£2.47 per day standing charge. 

£750 per month more than my existing rate. 

I have no idea if this is the going rate or not. 

I asked and broker said they are paid by the supplier not me so presumably this offer will be the same even if I manage to get through to the energy provider?