Even though you may use gas and electricity to power your business regularly, you may start to notice that your energy bill is higher than usual during the coldest and hottest months. There is a main factor for this increase and that is extreme weather, which can impact your energy bill and it can cause a short-term effect on your energy bill. Even in the winter, you will have higher energy bills due to the fact you will use more electricity to keep warm, turn on heaters, and take hot showers.
There are some reasons why the extreme weather can affect your energy bills.
Effects on Businesses
One major effect that extreme weather conditions can have on businesses, is that their energy bills could be two-fold due to the extreme weather placing a premium on it. The extreme weather will affect energy suppliers due to it causing costly problems, where they still pass on the cost towards their customers. In addition to this, businesses have a job to maintain a comfortable working environment for their employees regardless of extreme weather conditions, which will mean that a major increase in energy consumption.
Generation Costs can Vary
During the winter, electricity consumption increases meaning that generators will have to supply more electricity to meet the demand. Other places, like New Zealand for example, they rely on a renewable generation like hydro and wind. That is most likely enough to keep electricity prices to be quite stable since renewable generation doesn’t cost much to run. However, during the winter, the demand for electricity increases, therefore we will need another fuel supply to generate electricity.
In most cases thermal generation sources, like coal and gas to make the heaters and electric blanket holder to stay on. However, coal and gas are more expensive to buy and run and the extra costs are replicated onto the wholesale market (retailers buy electricity to sell to customers). This shows that retailers may even pass the cost to consumers.
Severe Cold Weather
Extreme weather can affect the energy bills which means that having severe cold weather can result in higher energy consumption. So, when snow falls it will commonly come in extreme cold which will mean that heating will be used to control the comfortable working temperatures within the business premises. On the other hand, extreme heat will also affect the energy consumption due to the fact that air condition units will be used at higher levels than normal so it can spread cooler air within the company to achieve the comfortable working conditions again.
Business energy bills are mainly affected by extreme weather conditions since warehouses, offices and other areas will need continuous air conditioning or heat. In addition to this, business owners will have to ensure that their employees are comfortable, therefore several air conditioning and heaters could be used in multiple offices at once. Often, there will be larger areas such as factory floors and warehouses where controlling a comfortable working temperature may result in higher energy consumption.
Compare Business Energy Online
If you’re looking for a new business energy deal or simply want to compare energy plans online, then please fill out the business energy comparison form and leave it to our saving experts to find the most favourable deal for your business. In the meantime, if you have any questions or if you are unsure of what you are looking for, then please don’t hesitate to contact us.
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