Electricity in the business environment: What you need to know

With the recent increase in electricity prices for professionals, understanding how the electricity market works becomes crucial for all businesses. Since it affects the formation of prices and makes you think about how to form and set up all the processes correctly, therefore it is worth paying attention to studying this issue.

Electricity bill for a business customer consists of  

  • Electricity supply;
  • Transmission (TURPE);
  • Taxes and contributions;
  • The composition of an electricity bill for a business.

Electricity Supply

Electricity consists of a fixed part - the subscription fee - and a variable part that corresponds to your consumption. The subscription fee varies depending on the offer you choose, the power you subscribe to and the type of meter you use. Consumption is expressed in €/MWh or c€/kWh. It corresponds to your electricity consumption multiplied by the price per MWh or kWh.

Transmission charges (TURPE)

The public electricity network usage tariffs (TURPE), common to all suppliers, are used to finance the transmission (RTE) and distribution (Enedis and ELD) network operators. These tariffs are set by the energy regulator, the Energy Regulatory Commission, and are intended to cover the costs of maintenance, establishment and repair of the electricity networks. The amount of the transmission component is calculated depending on the type of meter, electricity subscription and the usage option selected. The public electricity network tariffs consist of three parts:

  • Management component: covers the cost of managing the customer;
  • Metering component: covers the cost of reading customers' meters;
  • Withdrawal component: covers the costs of variable consumption and the cost of exceeding the subscribed capacity.

What is TURPE

TURPE optimization is an opportunity to reduce your energy bills. This requires research to select the right power to take advantage of the optimal network tariff. Depending on your site's electricity consumption, the savings can amount to several thousand euros per year. The transmission share is charged by electricity suppliers and is fully redistributed to the transmission and distribution network operators.

Taxes and contributions

Taxes and contributions make up a third of your electricity bill. They are levied by the electricity supplier in favor of the government and are paid in full. There are three taxes on electricity: CTA, TICFE and VAT. Like TURPE, these taxes are common to all electricity suppliers.

How to reduce your electricity bill

To reduce their electricity bill, business customers can utilize the services of an energy broker. Given the complexity of the electricity market, an energy broker plays a key role in helping business customers reduce their electricity bills. By accurately analyzing your needs and comparing the available offers,

An energy broker can help you

  • Conduct an inventory of your consumption;
  • Compare offers from different energy suppliers;
  • Negotiate the terms of your contract;
  • Optimize your TURPE and electricity taxes.

This partnership will allow you to benefit from in-depth market expertise, constant price monitoring and negotiations tailored to your specific needs.

The issue of electricity supply is an important part of running a business that cannot be overlooked when strategizing and costing. It is important to understand your personal needs and based on them to look for the ideal option for your business that will meet your specific needs. Monitoring, analyzing energy supply can significantly affect the competent management of finances and protect your business from unpleasant surprises.



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