Electricity is one of the most significant expenses when it comes to office buildings. Choosing a plan with the best electricity rates thus becomes an important business decision.
Commercial buildings in Australia account for 10% of the country’s carbon emissions. Several government initiatives are in place to reduce this emission rate and increase renewable energy usage while minimising electricity bills for businesses.
So, in the meantime, what measures can you take to manage electricity bills for your office building better? Read on to know the answer:
What Goes Into the Best Electricity Rates for Your Office Building?
Business Electricity Plans
The electricity needs of an office building will significantly vary from residential complexes. As a commercial space, you will have higher electricity consumption compared to a household. Several retailers offer business-specific electricity plans that you should explore.
Some retailers offer specific rates for commercial buildings, while others provide a customised electricity plan according to your energy needs. In addition, you could leverage the audit services offered by the energy provider to understand how you can better manage electricity use.
Different Tariff Rates
Standard rate, time-of-use, controlled load and demand are the basic types of electricity tariffs offered. A tariff is a rate charged per kilowatt-hour (kWh) energy used.
With a standard rate tariff, you will be paying a standard electricity rate irrespective of the time of the day or night. However, the time-of-use tariff is more flexible as it offers different rates during peak and off-peak hours.
If there are high energy consumption devices, then a controlled load tariff will be applied. Lastly, an additional demand tariff will be levied by the provider depending on your energy consumption.
Energy providers offer business plans that specifically state the type of tariff you can utilise.
Types of Electricity Metres
Accumulation, smart and interval are the three types of electricity metres you can use. The type of metre used can affect your overall electricity bills. For example, if you have figured out a way to make the most of the time-of-use tariff, you can only choose that plan if you have a smart or interval metre.
With an accumulation metre, you can only sign up for standard rate tariff plans.
Discount for the First Year
Several energy providers offer a guaranteed discount on the first year of your business plan. If you register as an SME or medium-sized organisation, you can enjoy the benefits from such plans.
There are also different discounts on no paper billing, alternative energy sources, and long-term contracts. Go through the terms and conditions of these discounts to avoid any last-minute surprises.
To receive the best electricity rates, you will have to spend time taking quotes from different energy providers. Talking to multiple customer care representatives, scouring through provider websites could become a tedious task. A more accessible alternative would be to compare plans online according to your location.
Look for electricity plans that cater to commercial spaces and consider factors like tariff type, usage and supply charges, discounts, and customer service for the electricity rates for your office building.
*Photos by Laura Davidson