Never before has there been a better opportunity for businesses to examine their electricity and gas consumption and identify quick and simple methods to decrease their bills because the usual UK small business spent around £3,500 on energy the year before.
Energy awareness and efficiency can help small businesses increase their profits and significantly reduce their carbon footprint, resulting in a more successful, environmentally friendly business overall.
How Much Does the UK Business Sector Spend on Energy?
The typical company energy expense has increased over the previous ten years as a result of growing energy prices, changing consumption habits, as well as state measures. Businesses have been shifted to suppliers with far less advantageous rates as a result of numerous competing suppliers going out of business as a consequence of growing wholesale providers.
Gas and energy costs now account for a sizeable amount of the monthly expenses for the majority of SMEs, eating into their profitability.
In 2020, the typical UK small business consumed 35,000 kWh of electricity, whilst the average yearly consumption for large businesses and industries was 155,000 kWh. Micro firms, on the other hand, did better, as you might expect, with an average mortgage of £1,735.
What Energy Cost-Saving Measures Can Businesses take?
Using less energy is one of the best approaches to saving costs for your company. You may be passing up substantial chances to cut costs if you’re not already thinking about ways to reduce usage.
It makes sense to reduce your energy costs because doing so frees up funds you can use to expand your company in other directions.
Sustainability can also lessen your company’s carbon footprint, which is fantastic for the environment! There are several cost-effective, quick, and simple strategies to lower corporate energy bills.
• Be energy conscious
Understanding how much energy you use and how much it costs you is the very first stage to lowering your energy costs. The number of individuals in the building, what type of activity you conduct, and the typical cost of energy for each unit will all have an impact on your costs.
Knowing your company’s annual consumption figures, as well as the date your contract expires, gives you the information you need to compare your present supplier’s pricing to those of other providers in the market with accuracy.
• Compare energy prices
If you let your current tariff renew without comparing it to alternative options, your bills could go up by 100 percent. It is worthwhile to find out just how much making the switch can save you before your contract expires.
One of the reliable sources you can link up with is the Business Energy Comparison, a website that helps businesses of all kinds find the best energy prices rates and so much more.
However, whether you go directly, through a broker, or even via an online search, choose the finest one for your company’s requirements.
• Make an energy audit
Without knowing where you are already losing a lot of money, you cannot begin to reduce your energy expenditures. An energy audit’s goal is to pinpoint aspects of the business where power use is costing your firm money.
The details are presented understandably in an efficient power audit, as well as methods to lower your usage are suggested. Based on the scale of your business, they normally only take 4 up to 6 hours. Even free energy audits are offered by just a few corporate energy providers as part of the service. See if your current supplier has any available. It might be worth a shot.
• Verify your contract
It pays to ensure you have the greatest contract arrangement for your business, regardless of whether you stick with your current gas as well as electricity provider or transfer to a better one.
For instance, a longer fixed-term agreement could help shield you from potential price increases, providing much-needed comfort as well as facilitating budgeting. Or, if you choose a Direct Debit payment arrangement, you might be eligible for an extra discount.
• Check Out Your Peak Demand
Your firm utilizes far more electricity during periods of peak demand. These increases in electricity use have an impact on the price per kilowatt hour that your utility charges you. There are various ways to efficiently balance your usage and reduce the price you are paid.
To begin with, you can give workers different start times as well as spread out their workday over a longer amount of time.
Additionally, it will be beneficial to schedule the operation of demanding energy devices for off-peak times. Many firms have begun to use generators in addition to the regular electricity source to help manage peaks in demand that occur off the power grid.
• Install a smart meter
About installing a smart meter, speak with your supplier. As a result, you will always be aware of the exact cost of your company’s energy supply.
Additionally, because you simply pay for the energy you consume, there is no requirement for approximate billing or metre readings.
It can help you reduce monthly costs, become more aware of how much energy your business uses, and decide where usage might be reduced. Larger firms may find useful insight from energy management software as well.
• Keep an eye on your equipment
Every piece of technology, including computers, printers, lamps, and other energy-guzzlers, should have an Energy Star rating, indicating that it has been determined that it is energy-efficient.
After business hours, all applicable equipment must be placed in sleep mode or connected directly to electrical outlets and switched off fully.
Costs can be greatly decreased by installing LED lighting and smart thermostats that are managed via an app on your smartphone.
Consider setting up motion detectors that turn on the lights only when required in less regularly utilized areas like conference rooms, toilets, as well as kitchens.
Implementing a regular maintenance schedule with your HVAC provider will guarantee top performance throughout the whole year, including the summer as well as winter.
The cost of energy is rising steadily. Business energy management might be difficult, but if you ignore it, your operating costs could skyrocket. Yes, some energy management strategies can be costly and difficult to adopt.
However, there are a lot of straightforward strategies to save corporate energy costs. Hopefully, this article provided you with some inspiration for cost-cutting measures for your company. Wishing you luck as you conserve energy.