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A Simple Guide for Uses of Business Energy

Business In Dubai

The majority of business owners are aware that their monthly energy bills are one of the most costly running expenses that they need to make. A company’s energy bill can quickly start adding on to small business owners’ costs, which can make things extremely hard for the owners. But one of the best ways to reduce energy costs is by using it during off-peak hours. However, the question arises, is electricity cheaper at night?

Energy bills around the world can now be reduced due to many countries adopting the plan of reducing the cost of energy during the night. While this is not true in every country, there are some, such as the United Kingdom and the United States of America, that have adopted this practice.

What’s the Time of ‘Use Pricing’?

A company needs to understand peak demand charges so that it can thrive. Time of use pricing is related to the law where during certain times of the day, energy use becomes higher or lower. When energy use becomes higher, energy prices will increase; this is known as peak hours. While on the other hand, when energy use becomes lower, energy prices also decrease; this is known as off-peak hours. There are also other timings where energy prices may reduce partially or remain the same, and these are known as partial-peak or intermediate peak.

Usually, the time of use pricing can be split into three different time periods, and this is dependent on the utility company within your city or country.

Should Companies opt for Utility Companies or Third-party Suppliers?

The biggest difference between utility companies and third-party suppliers is that utility suppliers are responsible for the distribution and the transmission of energy to customers. Utility companies also supply energy as a default energy service provider when companies have not signed up with other energy providers.

The choice of utility companies and third-party suppliers is dependent on the price and how the purchase is made for their services. In a lot of countries, you will initially be provided with a utility service. While utility service is not wrong, it does not provide you with good strategic advantage for your company. This is because your companies’ bills will be dependent on the default rates set by the utility company. The same amount of energy may be provided much cheaper through a third-party supplier, but of course, this is not always the case.

If you buy your energy from a third-party supplier, then you will have several options to choose from. You will be able to sign contracts that give you fixed rates on your energy bills. You can even increase your business’s finances by choosing a contract that fits your business’s needs.


Understanding the mechanism behind the peak and off-peak hours is an advantage for businesses. While some business can run on off-peak hours, other may not be able to do so as these hours are usually at night. However, there are other practices that companies can adopt in order to reduce their energy bills and make their businesses thrive. But, at the end of the day, whatever method is chosen is dependent on a company’s employees and customer demands.


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