Does It Matter Where Your Business Is?
On the face of it you would probably say ‘No’ but in the realms of energy, the answer is definitely ‘Yes’.
Why?
That’s because if you had your business in Wales, you will be paying around £2000 more than if your business was in the North East of the UK.
Partly, this is due to the higher non- commodity costs (such as the transmission and distribution of the energy, plus charges associated with government schemes and levies) associated with the region. That gap is widening too, with average bills for those in the North East reducing by 13% quarter on quarter.
The report brings good news for embattled UK businesses, showing that not only are they using 3% less energy than the previous quarter but they are paying 6% less for it. Whilst some of the decrease will have undoubtably come from the unseasonably mild weather seen during the quarter, it also points towards UK businesses becoming increasingly environmentally conscious.
The average UK business now consumes almost 23 MwH of energy a year. This is 15% less than the same period in 2023. However, businesses that use more than 50MwH a year have typically seen their energy usage decrease this quarter, very small businesses that use less than 10 MwH of energy per year have actually increased their average usage by almost 10%.
UK businesses are using 3% less energy than the previous quarter. Very small businesses across the UK, however, have seen bills rise by almost 5% this quarter and very small businesses that use less than 10 MwH of energy per year have actually increased their average usage by almost 10%.
After the various crippling price rises seen in recent times, it is good to see that UK businesses are now spending less on electricity than previously. UK business’ average spend on electricity is 6% less than last quarter (from £5446 to £5117) and almost half what it was during its peak in Q4 2022. Very small businesses, however, have unfortunately seen their bills rise by almost 5% this quarter.
The biggest reduction in bills this quarter was for businesses
in South Scotland. There, bills reduced by over 14%. Very large businesses in the region saw the biggest reduction of their bills, from £32400 to £28918 (11%).
Perhaps unsurprisingly, at a time when both average energy usage and cost has decreased, the average contract term preferred by UK businesses has increased from 25 to 27 months.
A business would save, on average, 2.7% by signing this contract with someone other than their existing supplier and rises to 5.5% for high energy usage businesses, it equates to well over £1000 on the bottom line so becomes far more worthwhile.
Want to find out if your business would save money by switching?
Call us now to go to https://www.plhutilities.co.uk/quotation/
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