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Whether one is part of the utility business or not every adult knows that energy or rather a utility needs are broadly classified into two categories:

  • Business or Commercial
  • Residential or Retail

Another category, which is an extension of the first one, is the industrial sector, where the energy needs are on the much higher side. Energy is something that both these sectors are heavily dependent on. Without it, both these areas would practically come to a standstill. Many underlying factors are present, which differentiate the energy needs in both of these areas.

Why is there a difference?

The primary reason that makes the energy needs of these two departments different is the nature of use. Take for example a residence. The energy needed to run the place is mainly used to control the temperature (heating or cooling depending on the climate), cook, run some light machinery like computers, phones, etc., and lighten the place after dark. 

On the other hand, any commercial space would need the energy to run the machinery (generally on the heavier side) used for business functionalities, have huge cooling requirements, and the lighting requirements often skyrocket as well.

The above small example provides a high-level overview thereby helping to understand the reason why these two sectors’ energy supplies are differentiated. Besides there are many blogs like the Utility Bidder that provide better insight to not only understand the differences but also to get the best deals from the energy supplier as well.

How does one differentiate between these two?

To the common masses, differentiating between these two is practically not possible. It is essentially the suppliers and the government norms that specify the difference. However, the manifestation of this difference is often observed in the rates at which the service of energy is provided. Naturally, the rates of business energy connections are on a higher side than those of the residential ones.

The other factor that has a stark difference in energy requirement is the nature of the connection. The residential energy supply is of lower amperage as compared to the ones provided for commercial or industrial use. It is because the supply lines for energy often get heated thus indicating the risk of fire hazards. Since the residential supply does not put on much load, hence they need lesser safety measures than that of commercial ones, where the load is much higher.

The most interesting difference is the meter reading stats for the supplies between a commercial and a residential connection. As commercial connections tend to incur more units in the meters, therefore accuracy of their reading is expected at a higher level in comparison to the residential ones. 

One of the primary examples of high accuracy meter reading is the half-hourly stats, which updates the usage every half an hour so that there is no little room for errors.

We all are rapidly moving towards an era of huge environmental change. Therefore, using energy judicially is the call of the hour at this stage, whether the connection is commercial or residential.

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