The contracted electrical power and the electricity rate are fundamental aspects for any business. How can you determine how much power you need and what rate is best for you? Keep reading to find out!

What is electrical power? What is a rate, and how is it different from others? Let's define the main concepts before we know what is the best choice for a business.

If after reading this article you still have doubts, Polaroo is always there to help you with everything you need, whether it's information or the same management of rate changes, power or electricity company.

What is contracted electrical power?

La Contracted power is the maximum amount of electrical energy that your business can consume simultaneously. It's the Maximum electrical energy demand capacity required by the business at any given time.

Electrical power is measured in watts (W) or kilowatts (kW) and can vary depending on the type of commercial activity, the size of the premises, the quantity and type of electrical equipment used, as well as operating hours.

It is essential to accurately determine the electrical power needed for the business to avoid overloads in the electrical grid, power outages or overpaying for energy that you don't need. Both the power chosen and the associated electricity rate impact the operating costs and the profitability of a business. If we choose one product or another for a dish, or a supplier or another for decorating a table, with light we must do the same.

Electricity rate

The electricity rate is the price that users pay for the supply of electricity to their businesses. This is the cost that is billed for the electricity consumption recorded during a given period. The electricity rate may vary depending on different factors, such as the type of customer (residential, commercial or industrial), the contracted power, the type of rate (regulated rate or free market), time discrimination, and others.

The calculation of the electricity rate is based on different components, which may include the Power term (related to the contracted power), the Energy term (related to electricity consumption), taxes, tolls, and other additional concepts. The electricity rate is billed periodically, usually monthly, and its amount depends on the electricity consumption recorded during the billing period, multiplied by the price per kilowatt-hour (kWh) established in the contracted rate.

Time discrimination

Time discrimination is a type of electricity rate that varies depending on the time of day at which the electricity is consumed. With this type of rate, the price of electricity is lower during certain hours of the day, known as “off-peak hours”, and higher during peak hours, known as “peak hours”.

In general, off-peak hours are usually during the night and early hours of the morning, when electricity demand is lower and power generation is cheaper. In contrast, peak times are usually during daylight hours, when demand is higher and power generation can be more expensive.

This type of rate can benefit businesses that can adjust their electricity consumption to take advantage of lower prices during off-peak hours.

Guide to hiring the best electricity rate and the best power for your business

To determine the power your business needs, simply add up the power required by all the equipment you use. Let's use a basic example to understand what is the most suitable light power for a business:

If you have a 2kW oven, a 0.2kW fridge and a 0.1kW television in your premises, flat or establishment, you will need at least a contracted power of 2.3kW to use them all at once.

That is to say, to know what light power we should hire, the best thing is to make an inventory of all the equipment we have in the business, know the power they need to work and estimate how many of these devices can work at the same time. The result of the sum will be the light power that we must hire at the very least.

Normally, the equipment that needs the most power to operate is usually the furnaces, heating, electric thermos and splits of air conditioning.

If we look at the different power possibilities when we are in the construction or remodelling phase of the business, instead of using electric heating and hot water, we can, for example, opt for the option that works with gas, since it consumes less electricity and we can hire a lower electrical power.

We must not forget that the contracted electrical power will also depend on the electrical installation of the asset. In order to be able to contract 10kW of power, it is necessary that the electrical installation can withstand this power and be certified by an electrical bulletin. Otherwise, the electricity distribution company will reject the contract.

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The electricity rate, the second step so that your business doesn't stop

Once the right contracted electrical power for the business has been defined, it is necessary to choose the electricity rate. Depending on the power, there are two types of contracts: 2.0 (less than 15kW contracted) or 3.0 (more than 15kW contracted).

Each type of contract has different rates that can be divided into two groups: single fixed rates and variable rates.

Las Single fixed rates have the same price for electricity consumption at any time and day of the week. While in the Variable-rate tariffs change consumer prices according to defined brackets (rates 2.0TD with 3 schedules for your electricity consumption and 3.0TD and higher 6.1TD with 6 time periods) or depending on the time (indexed rates).

What is the best rate for a business? The fixed rates are adapted to businesses with stable and regular use of electricity throughout the week, such as a coffee shop. While variable rates, especially the 3 prices or 6 prices, are recommended for businesses that use electricity mostly on weekends or nights, such as a restaurant.

A commercial space that operates every day of the week between 8:00 and 20:00 = Single fixed rate.

A secondary home that is used mostly on weekends = Variable rate.

Polaroo and the contracting of electrical power and electricity tariffs

Even if the power and the electricity rate are adequate, we must always take into account some tips and practical strategies to optimize electricity consumption to further reduce the costs of supplies in a business.

The efficient use of lighting, air conditioning, the purchase of certified A electrical equipment and other energy efficiency measures will go a long way to lower the price of electricity that a business pays.

Polaroo saw this clearly from the start, and that is why it is a key tool for achieving this efficiency and the reduction of the cost of electricity that we discussed in the article. With Polaroo you can monitor your energy consumption and costs, so that you can always know what your business pays for electricity and your months, days and hours of highest energy consumption. With this, it is possible to optimize costs and improve your margins.

Access to cost, payment and consumption data per supply and asset allows control that no other tool offers.

In addition, Polaroo experts to whom you can delegate all operational activities related to supplies, such as registrations, cancellations, changes of owner, incidents and complaints they will make your life easier so that you can focus only on running the business. Thanks to market analysis, Polaroo recommends the best suppliers, electricity rates and other services that every business needs when making strategic decisions. Choosing the best electrical power and the best electricity rate It's easier for a business if you know all the concepts with the help of Polaroo.