With the typical UK small company spending over £3,500 on energy last year, there’s never been a better moment for businesses to review their gas and electric consumption and identify simple methods to save money.
Becoming energy conscious (and intelligent) may help companies increase their profits and drastically lower their carbon footprint, resulting in a more lucrative, greener organization overall.
How much do firms in the United Kingdom spend on energy?
Rising energy costs have increased average company energy expenses over the last decade, thanks to shifting consumption patterns and government measures. Businesses have been shuffled to providers with less favorable rates due to many competitive providers going bankrupt as a result of growing wholesale providers. Gas and electricity bills now account for a significant amount of most SMEs’ monthly expenses, depleting a significant portion of their income.
In 2020, the typical UK small company used 35,000 kWh of electricity, while yearly consumption for major businesses and industries may exceed 155,000 kWh.
As you would expect, micro-enterprises fared better, with an average bill of £1,735.
How can companies save money on energy?
While the figures may seem daunting, particularly for enterprises with energy-intensive industries such as hotels and catering, healthcare, and manufacturing, there are methods for clever bill payers to reduce their use and costs. Take advantage of these expert recommendations to save money on your energy bills.
Become conscious of your energy.
Knowing how much energy you use and how much it costs you is the first step toward decreasing energy rates. The number of people in the facility, the sort of job you conduct, and the average energy cost per unit will all influence your costs.
Knowing your company’s yearly consumption data and when your contract is up for renewal gives you the information you need to correctly compare your current supplier’s pricing to those offered by competitors.
Make a cost comparison.
Allowing your current tariff to roll over without comparing it to others might result in a 100% rise in your expenses. It’s important figuring out how much transferring may save you before your contract expires. Pick the ideal one for your company’s requirements, whether you utilize a broker, an internet search, or going direct.
Examine your contract.
Whether you stick with your current gas and electricity provider or move to a better one, it’s important to ensure that the best contract is in place for your company.
An extended fixed-term contract, for example, might help insulate you from future price increases, providing an essential piece of mind and making budgeting simpler. If you choose a Direct Debit payment plan, you may be eligible for an extra discount.
Invest in a smart meter.
Speak with your energy provider about installing a smart meter. You’ll know precisely how much your business’s energy supply costs you daily, and you won’t have to worry about projected billing or meter readings since you’ll only pay exactly what you use.
In addition, it may help in better understanding of your company’s energy consumption and make better decisions about where you can cut consumption. For bigger firms, energy management software may also give valuable knowledge.
Modify your habits.
While part of your energy use may be fixed, there are undoubtedly some places where you can make improvements — and even a little adjustment in output may result in significant yearly savings.
From turning off laptops at the close of the day to installing a timer for your lights, there are various easy things you can do to save energy. Some businesses even use incentive programs to encourage improved behaviors by providing concrete benefits for employees who behave more environmentally friendly.
Invest to save.
When purchasing equipment for your business, keep long-term energy and environmental performance in mind; for example, use energy-efficient, A-rated appliances. While this strategy may seem more expensive at first, every piece of equipment that helps you conserve energy in your daily operations will pay on its own and more in the long term.