Every business has its operating costs. It can be for stock or materials, rent, energy, and more. But, according to research, one of the most considerable costs for UK businesses is their energy supplier.
Whether you are paying through a monthly tariff or under a yearly contract, when you are paying more for your business energy needs, can cause a significant drain on your company’s resources.
Spending too much on business energy can be a huge barrier to your business’s growth and success. Hence, it would be better if you found ways to reduce these costs over the long term. If you want to know more, scroll down below for ways to reduce your energy costs and save more money.
When it comes to cutting down your business’s energy costs, you must first understand how much you are currently paying.
Once that is done, review your current contract and usage levels to understand where the costs are coming from. The best way would be to figure out if there are areas where you can improve your energy efficiency while also saving money in the long run.
Some of the first steps include:
1. Analyzing your energy costs
To reduce the cost of business energy, it is important that you first understand where your current business’ power utilization lags behind. To do this, start with reviewing the usage trends over the past few months.
From there, find out what factors are impacting your energy consumption levels. This would be a good time to consider refurbishing any old equipment that is not giving an optimal performance or take steps to properly maintain your machinery and equipment.
2. Switching to green power
Another way you can reduce your company’s business energy costs is by switching to renewable sources of energy, such as solar power. According to research, solar energy is cost-effective and can help slash your energy bills by up to 50%.
Not only that, but you’ll also be doing your part in helping the environment. You can learn more about solar power installation by contacting a professional installer in your area.
3. Negotiating a better tariff
If you have been with your current energy supplier for a while, it is time to negotiate a better tariff. This can be done easily by finding out what other suppliers are offering and what rates they are charging. Be sure to have all the facts and figures in hand so that you can get the best deal for your company. Don’t be afraid to switch providers.
Some other the things you need to work on are the following:
1. Heating
When the heating is on, the higher the thermostat is set, the higher your energy bills. Unfortunately, the reality is that heating costs increase by eight percent for everyone-degree Celsius increase.
Heating and cooling is one factor that will significantly impact your business gas bills during the winter and summer months. However, there are various approaches you may utilize to reduce your energy consumption.
First, taking advantage of the available technology nowadays can significantly help. For example, smart thermostat systems allow both heating and air conditioning to be activated at certain times and in certain temperatures, and you can even control some remotely.
Having this type of technology can be pretty expensive at first, but it will reduce business energy costs in the long run. As an option, you can look to assess specific areas that are potentially leading to heat loss so you can identify a quick fix.
Second, ensure that the heating and cooling are set at the recommended temperature. In addition, the AC in IT server rooms and other areas may have recommended temperatures, so always follow instructions. You can also move your air conditioning system in an area, not within direct sunlight.
2. Refrigeration
In order to keep your food cold, most businesses rely on a commercial refrigerator unit. Unfortunately, these units can be very costly to run, especially if they are not kept at the right temperature.
Most of these units have timers that monitor their performance. When you use them only when needed, you can achieve cost savings.
Doing these simple fixes can already help you save £140 on a £1,000 bill.
3. Lighting
By making minor changes to your business’s lighting arrangements can impact your electricity bills. Ensuring that lights are off when not used is just as important as switching your heating or cooling systems off.
Have you ever asked how many employees turn off the lights when not in use? It’s probably not as many as you might think, and you might even be surprised by how many people forget. The use of lighting in your office space is another way to save on energy. The key here is to use natural light as much as possible during daytime hours. When the sun goes down, turn off any unnecessary lights and use task lighting instead. You can also install sensors that will automatically turn off the lights when no one is in the room.
This may be an investment at first, but it can quickly pay for itself in saving energy costs. Additionally, it’s worth noting that LED lighting uses significantly less energy than traditional bulbs and lasts much longer too.
Another way to lessen your electricity bills is by investing in LED and motion sensor lights. LED lights are bright, and they use less electricity, unlike other types of lights.
4. Draughts
You can lose heat through windows and doors, especially when your structure has poor insulation, which will affect your gas bills. To repair this, you need to make sure that the frames are correctly fitted because effective insulation can save you more money by reducing unnecessary energy loss.
Furthermore, correct insulation can also help retain the heat you are generating so you can turn off your heating for a certain period and still feel its benefits. Did you know? Up to thirty percent of heating costs can be saved when you prevent cold air from entering your building. So, by following these tips, you can easily reduce your gas bills by £300 without making any major changes.
Remember, the most important part is to take small steps and make gradual changes so you can see the impact on your business’s energy consumption and costs. Implementing even a single one of these ideas can lead to significant savings.
5. Switch
In the UK, now is an excellent time to switch energy suppliers. The government has introduced the “Power to Switch” a campaign to help SMEs find better energy suppliers to reduce the financial burden of paying too much for energy.
TheSwitch.co.uk, for example, is a website that can help your business find the best energy deal and supplier. It’s completely free to use, and it only takes a few minutes to switch.
Ok, so these are just some of the ways your business can reduce its energy bills. But remember, in order to save more money, you need to change the way you think about your energy consumption.
6. Service
Business utility prices fluctuate due to demand and supply. Therefore, you need to work with a utility broker who can give you the best live prices to help you save money for your business.
Nowadays, many third-party intermediaries offer their services to SMEs. They help customers gain the most competitive energy contracts in the market, but there are times when these intermediaries do not provide other alternatives. Instead, they will only push for contracts that will give them more profit.
Therefore, your chosen utility broker must hear your opinion regarding the details of your business’s needs. Look for a utility broker who offers excellent customer service. You can research online for reviews or check out Trustpilot for independent reviews from customers.
Conclusion
To get the best prices and deals on your utilities, you can check out Utility Bidder. They can provide you with a comprehensive and hassle-free service for all your business gas and electricity needs.
They can help you save up to 45% on your business gas prices. In addition, they have immediate pricing access to all major UK gas suppliers. For your business electricity needs, they manage more than 20,000 electric meters for their commercial customers. This means that they have access to all the latest market pricing updates.
Also, if you need help with your water, they can help find a better value for your money, lower your water bills, and provide you with better quality service.
