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Gas and electricity bills for salons

Virtually every type of business needs energy in order to operate – and hair and beauty salons are no exception. In fact, there’s a good chance that your salon is highly dependent upon gas and electricity, given the amount of electronic equipment and hot water that’s integral to your daily business activities.

The cost of this energy usage will inevitably effect your salon’s bottom line, and could even make up a significant amount of your business’s overall outgoings. That’s why it’s important that you actively manage your gas and electricity accounts, and make sure that you’re getting a fair deal from your supplier.

Salon energy bills explained

Energy bills can often be confusing – sometimes suppliers even intentionally make them so – but taking the time to learn about each element of your bill can help you take control of the amount that you spend. This will make it easier to budget for your bills, and also help you identify when you’re paying too much.

There are a number of factors that make up the overall price of your bills, but the most common charges are:

  • Unit rate: the price for each unit, measured in kWh, of energy that you use. While the unit rate will always stay the same, your bills will vary depending on your consumption level. Unit rates can vary in price from anywhere between 3p and 12p per kWh.
  • _[Standing charge](/business-energy/standing-charges-explained.aspx?ga=2.19695678.722977072.1540196046-1979871871.1538480561&gac=1.195743384.1538480571.EAIaIQobChMI1-KX19bn3QIVz7vtCh0DywmwEAAYASAAEgKs-fDBwE): a standard cost that you will have to pay regardless of how much energy you do or don’t use, although some suppliers offer contracts that have no standing charge.
  • Value Added Tax (VAT): a government tax that is applied to all goods and services – including energy.
  • Climate Change Levy (CCL): an environmental tax introduced as a way of encouraging businesses to reduce their energy consumption.

For a more detailed breakdown of the elements of your business energy bill, click here.

With so many different factors making up the final price that you pay, it’s easy to see how the cost of your energy bills can quickly escalate – but that doesn’t mean that your business should suffer at the hands of expensive gas and electricity contracts. Many businesses in the UK are actually paying far too much for their energy bills – and often unwittingly so.

Switching suppliers for your salon

If you have never before compared energy deals for your salon – or have not done so in some time – then there’s a good chance that you could stand to save money on what you currently pay. Simply switching to a different supplier and a better deal could cut your annual bills by thousands of pounds – and such a direct boost to your bottom line should give you the opportunity to invest in other areas of your business.

Remember: When comparing business gas and electricity, finding the cheapest business electricity, or gas, deal should not be your main motivator. You should also consider which supplier will provide yo with the best service, for example.

When considering energy options for your business, it’s important to bear in mind the contract end date of your current deal. This date indicates when your current contract ends, and therefore the date on which any switch you arrange will go live. For more information about contract end dates, and how you can find yours, visit our Small Print Pointer.

No matter how high or low your salon’s annual gas and electricity usage, you could find a better energy deal simply by running a supplier comparison – there are energy options available to cater to every business’s needs.