Whether you work from home, own a car shop, or decide to start your own cafe, there’s a lot that goes into running a small business. With the dozens of other things and responsibilities to worry about, the last thing you want on your mind is your utilities. However, in Texas, choosing the right electricity company for your small business can mean the difference between having extra cash to spend on necessities, or being strapped to a tight budget.
Keeping a business of any size afloat is a tall order in our current economy, but it’s even more difficult with small businesses. You simply don’t have as much overhead or wiggle room in your budget to make mistakes. For that reason, it’s important that you choose the right electricity company the first time so you don’t get locked into an expensive contract. Contact us at GoodCharlie Energy to learn more or to start making the switch today!
- What are Small Business Electricity Rates?
- What are the Average Electricity Rates for Small Businesses in Texas?
- Is There a Difference Between Business and Residential Electricity?
- How Much Electricity Does a Small Office Use?
- How to Choose the Best Electricity Plan for Your Small Business
What are Small Business Electricity Rates?
If you own or rent a home in Texas where you’re responsible to pay for monthly utilities, you’re likely familiar with electricity rates and plans. Small business electricity rates work exactly the same way as your residential electricity plan does. The rate is what you pay for every kilowatt-hour of electricity you use, and your bill goes to the retail electric provider with whom you’re enrolled.
What is Considered a Small Business in Texas
Each state has its own rules and qualification process when it comes to being considered a small business. In Texas, a small business is any company that employs fewer than 100 people. It can even include those who are self-employed and have an LLC or other type of established, legal company.
Regardless of the size of your company, however, having a quality electricity plan with great rates is imperative.
Average Electricity Rates for Small Businesses in Texas
Whether you own a small, medium, large, or colossal business in Texas, your electricity rate won’t change. There aren’t different pricing tiers for companies of different sizes. The only thing that will affect your business electricity rate is the REP with whom you sign up.
Currently, the average electricity rate for businesses in Texas fluctuates between 8 and 9 cents/kWh. However, that price can go up or down dramatically depending on the REP that you choose. Some providers will charge up to 15 cents/kWh, while others will charge less than 8. It’s up to you to do your research, compare different rates, and choose the plan and company that are best for you.
Is There a Difference Between Business and Residential Electricity?
While business and residential electricity rates and plans work very similarly to one another, there are a few subtle differences.
The Benefits
The first thing that’s different between commercial and residential electricity rates are the types of rewards and benefits you may be entitled to. Residential plans are much more likely to have built-in rewards such as free nights and weekends, unlimited usage periods, and monetary benefits.
Electricity plans for small businesses, however, tend to be more straightforward and don’t offer as many rewards or benefits.
The Rates
The main difference between business and residential electricity plans is in their rates. On average, business electricity rates are 3 to 4 cents cheaper per kWh than residential rates. Residential rates cost an average of 11.5 to 12.5 cents/kWh, whereas business electricity rates are closer to between 8 and 9 cents/kWh.
The Usage
The final difference between residential and business electricity is in the amount that you use. The average house, apartment, condo, or other residential dwellings in Texas uses around 1,200 to 1,300 kilowatt-hours of electricity each month. Compare that to the average business in Texas that uses over 7,000 kilowatt-hours each month, and it’s quite a difference.
The sheer amount of electricity that businesses use is the reason that the price is lower. Small businesses would go bankrupt if they had to pay the same electricity rate that residential customers did.
How Much Electricity Does a Small Office Use?
While the average amount of electricity that businesses use in Texas is over 7,000, that number depends on a number of factors. For example, that electricity usage amount is taking businesses of all sizes into consideration, rather than just small ones. If you have a small office of fewer than 10 people, your usage will be much lower. If you have a very small office with just one or two employees aside from yourself, your usage won’t be much different than that of your home.
It all depends on the number of people you employ, the size of your building, and how freely you use your heating, cooling, and electrical devices.
How to Choose the Best Electricity Plan for Your Small Business
While the amount of electricity you use and the average rate are different for businesses and homes, the way you pick your electricity company is the same. Here’s what you need to look for.
Customer Service
Let’s say you’re having a power outage or issues with your electricity, and it’s interfering with the productivity of your business. To resolve the issue, you’ll need to contact the customer service department of your electric provider. However, if you don’t have a provider with good customer service, there will be delays in answering your questions and getting power restored. It’s hard to have a good day at the office if you don’t have electricity, or if you spend half the day on hold.
Low Tiered Rates
At the end of the day, your electricity rate and the terms of your plan are the most important details to look out for. If you can find a plan with low rates and small gaps in their tiered rate to avoid overuse penalties, you’re good to go.
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