Onsite renewable energy system specialist Wattstor has unveiled a new renewable tariff for businesses with a “best of both worlds” approach.
The new Price Protect tariff combines the flexibility of a variable rate with the security of a fixed rate tariff. Prices are capped at a level below the market rate but follow market pricing trends to allow customers to benefit from drops in wholesale electricity prices.
Wattstor notes that this plan differs from currently available power purchase agreements (PPAs), as the tariff combines grid electricity and onsite-generated electricity into a single plan that covers a site’s entire electricity needs. This also allows businesses to switch to 100% renewable electricity while managing their usage and carbon emissions.
“The idea behind Price Protect is simple but totally innovative,” explained Wattstor’s CEO, Stephan Marty. “It’s a variable electricity tariff but capped. Customers will be protected by a price cap – meaning they’ll never pay more than agreed.
“On top of that, Wattstor’s rate will come at a guaranteed discount to the market rate. In other words, whatever the electricity market price is, if you have Price Protect, yours will always be lower.”
Wattstor works in various areas of the renewable energy sector, aiming to remove barriers to businesses seeking to transition to renewable energy. The company builds and designs bespoke solar and battery energy storage system (BESS) solutions and operates and optimises business BESS assets.
Businesses under threat from harsh tariffs
The news comes at a time when businesses are struggling under the weight of high energy prices.
Energy consultancy Cornwall Insight recently released analysis that revealed that steep increases in standing charges – daily charges paid regardless of the level of energy used – are putting UK businesses under increased financial pressure.
Cornwall Insight noted that standing charges make up a higher proportion of energy bills today than they did at the start of the decade, a trend that the consultancy predicts will continue until 2030. This dominance of standing charges in energy bills means that energy-saving measures, such as turning off lights or using high-energy appliances at times of low demand (and thus lower prices), are far less effective at reducing energy costs.
Analysis shows that standing charges for the average small business customer with an average annual electricity demand of 2.33GWh have increased from £31 per day (3.2% of total energy bills) in 2018 to £190 per day (12.8% of total energy bills) in 2024.
