Reducing your energy costs as a business

Reducing your energy costs as a business

If you’re looking to become more cost efficient as a business, have you considered taking a focus on energy bills? According to research, companies in the UK spend around £4,000 alone on energy. Becoming energy aware (and energy smart) can not only help businesses boost their bottom line, it can also dramatically reduce their carbon footprint – making for a more profitable, greener company all round.

Spend in the UK

In the last seven years, business energy costs have soared by 100%+ as a result of government schemes.  For most SMEs, gas and electricity charges now make up a considerable chunk of their monthly outgoings – taking a hefty portion of their profits. The majority of UK businesses are using between 15,000 and 25,000 kWh of power per year, but annual consumption figures for large business and industry can reach in excess of 250,000 kWh.

Electricity and gas bills do differ though, with the average British business spending £3,061 on electricity and £856 on gas each year. Small businesses in particular fare slightly better – but with the average electricity bill for an SME reaching £2,958 (and that’s before putting business mains gas into the equation), it’s still a considerable outlay.

Reducing energy costs

Although these prices may seem high, there are new ways for businesses to reduce their yearly bill — which could be beneficial for sectors like hospitality; who notoriously use this type of energy. Business mains gas installation specialists, Flogas Energy shares some expert tips on how companies can slash their energy costs:

Know how much you use

If you’re planning on cutting down costs, you must know how much energy you use. The average unit prices in the UK are currently 14.36p per kWh for electricity and 4.25p per kWh for gas, with standing charges on top of this. Finding out your business’s annual usage figures – and knowing when your contract is due to come to an end – means you’re well equipped to accurately compare your current supplier’s prices with others on the market.

Compare your prices

Ahead of your contract ending, it’s worth finding out how much switching could save you. And, whether you use a broker, online search or go direct, make sure you don’t limit yourself to the Big Six. Switching to a smaller business energy supplier could mean significantly lower bills, and benefits like better customer service.

Look into your contract

You must ensure that you have a contract that has been tailored to benefit your business. For example, an extended fixed-term contract could help protect you against future price rises, giving some valuable peace of mind and making budgeting easier. Or there might be an additional discount on offer if you opt for a Direct Debit payment plan.

The newly found smart meter

These days, most suppliers have the ability to fit a smart meter to give you a greater insight to your costings. That way you’ll know exactly how much your business energy supply is costing you day-to-day – and because you only pay for what you use, there’s no need for estimated billing or meter readings. As well as saving on monthly charges, it can also help you wise up to your company energy use and make better decisions on where you might be able to curb your consumption. Energy management software can also help provide useful insight for larger businesses.

Adopt better working habits

Undoubtedly, there’ll be some parts of your business where you can alter methods to work smarter — allowing you to save more as a business. It could be as simple as making sure computers are switched off outside of office hours, or putting your lights on a timer, but encouraging employees to find more efficient ways of working is a great place to start. Some companies even introduce incentive schemes to help foster better habits, offering staff tangible rewards for greener behaviour.

Make savings by investing

Remember to think about long-term energy use when it comes to investing in new equipment. While this approach might come with a heftier price tag in the first instance, any piece of kit that helps save energy on your everyday operations will pay for itself and more in the long run.

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