Electricity cost per kwh

ZZaffy

A website says the average kwh cost is 27p. I have 2 metres.  EON supplies my house and BES Utilities supplies my small livery yard.  BES Utilities charges me 46.37 per kwh.  Is this because business electricity is more expensive than domestic electricity? 

mmmmikey

In a word, yes. Business electricity is not regulated by Ofgem and rates are typically much higher than for domestic accounts.

MikeJXE

There is no cap on business tariffs 

QrizB

Note that under normal market conditions, business energy can work out cheaper than domestic energy.

Domestic costing less is a relatively recent phenomenon.

Robin9

@Qzris Yes indeed - my present commercial/business contract for my Church Hall has gas at under 5p  and electric at 25p (much better than the dizzy heights of 55p)  - but with high standing charges (£2.50 / £1.60)

In the business world you get quoted a rate but you must complete by the end of the day. 

EssexHebridean

It's well worth comparing if you are not tied in to a contract though. I recently pointed out to my employer that they could reduce the eye watering amount they were paying BG by in excess of 75% by switching.

Netexporter

Also, there is 20% VAT on commercial energy, rather than 5% for domestic. Won't make a difference if you are VAT registered but will affect smaller businesses.

Robin9

@Netexporter Not necessarily , 5% applies

if they are classed as a low energy user. This means: 

• They use less than 33kWh of electricity per day or 1,000kWh per month.
• They use less than 145kWh of gas per day, or 4,397kWh per month. 

Netexporter

I'm grateful to m'learned friend. That's quite a lot of energy.