Choosing a tariff that suits your load shape

A flat unit rate hides the fact that electricity has a different value at different times. Time of use and half hourly settled contracts expose that, which is a risk if your load is inflexible and an opportunity if it is not.

Sites that can move consumption, whether through storage, charging schedules, refrigeration set points or shift patterns, can materially reduce their average unit cost without reducing what they consume in total.

Sites that cannot move load are usually better served by a stable contract and by attacking consumption instead. Knowing which category you are in is the point of the assessment.

The unit rate is only part of it. Distribution use of system charges vary by time band, transmission charges are driven by demand in peak periods, the capacity charge reflects the supply you have reserved, and the Climate Change Levy sits on top of consumption.

Reserved capacity is a frequent and easy win. Many sites pay for far more capacity than they ever use, because the figure was set years ago for equipment that has since gone. Reducing it is a paperwork exercise with a real annual saving.

On site generation changes several of these lines at once, which is why tariff and generation decisions are better taken together rather than in sequence.

A solar array shifts your import profile towards the shoulders of the day. A battery makes the profile controllable. Each changes which contract shape suits you, so a tariff agreed before the assets are installed can quietly become the wrong one.

Export arrangements deserve the same scrutiny. Import and export can be contracted with different parties, and taking whatever export rate your import supplier offers is rarely the best available outcome.

Contract length is a judgement about volatility rather than a technical question. A business energy tariff comparison run against last year's profile will point you at the wrong contract, so what we do is make sure the profile you are comparing against reflects the site you will have, not the site you had.

The Climate Change Levy is charged on business electricity consumption, and electricity generated and consumed on site is not subject to it. That makes self consumption slightly more valuable than the unit rate alone suggests.

Some organisations qualify for reduced rates or exemptions, including those on a climate change agreement and certain charitable and domestic uses. The rules are specific and change, so they should be confirmed against current guidance rather than assumed.

We flag where a relief looks likely and point you at the right question to ask. We do not give tax advice.

We are not an energy supplier and we do not sell contracts. What we do is assess how your tariff, your load and any generation interact, so that the case for solar, storage or charging is built on the bill you actually pay.

Where the tariff is the main problem, we will say so. A site paying for unused capacity on a poorly matched contract can often save money before any equipment is bought.

When equipment is the right answer, we match you with a vetted installer from our network and stay involved through proposal and survey.