6 tips for cutting your firm’s energy bills
Business energy consumption and costs could be considerably reduced with the right corrective action, says Nicky Bannister, head of Flogas Energy
Want to save money and think you’re paying too much for your energy? According to independent consultancy, Smarter Business, the average medium-sized business in the UK forks out more than £4,000 a year on electricity and around £1,500 a year on gas, while small businesses pay approximately £2,500 annually for their electricity and nearly £1,000 for their gas.
Clearly, now is the time for companies to take a look at their gas and electric usage and find quick and easy ways to slash their bills.
You can be more environmentally conscious and reduce your monthly business energy bills with our guide to smarter energy awareness.
What is the current situation regarding UK business energy?
Over seven years, energy bills have gone up by 100% or more, according to studies. 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.
Have you ever considered how much energy use drives up the amount you pay every month to keep your company going? Given the figures above, it’s likely to be a considerable outlay.
Six ways to help cut your energy costs in 2018
Energy costs can significantly impact a business. However, you have the capability of reducing usage by bearing in mind the following:
1. Comparison of costs
Know that switching your energy provider can be a big help in slashing prices. Whether you use a broker, online search or go direct, make sure you don’t limit yourself to the ‘Big Six’ energy companies.
2. Usage awareness
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. What are your firm’s annual usage figures? Get these and use them to compare your current supplier’s prices with others.
Are you getting the best deal for your money? For example, there might be an additional discount on offer, if you opt for a Direct Debit payment plan.
4. Considering a smart meter
If you truly want to keep an eye on use, get a smart meter. With this technology, there’s no need for estimated billing or meter readings and you’ll save on monthly charges due to your company being wiser regarding energy use. Energy management software can also help provide useful insight for larger businesses.
5. Looking at energy use behaviour
Look at how you and your staff use energy every day. Make sure computers are switched off outside of office hours and put your lights on a timer. Some companies even introduce incentive schemes to reward greener behaviour in their staff.
6. Think of investing in energy efficiency
Installing energy-efficient appliances is also a shrewd way to cut costs and over time, you’ll see the difference in use, efficiency and price.
*Statistics from BusinessEnergy.com and SmarterBusiness.co.uk
Visit the Flogas Energy website