Reduce Your Business Energy Costs

1. Compare Energy Prices

If you run a business it is imperative that you ensure that your energy costs are as competitive as they can be. Many business who believe that they are on competitive rates are actually paying more than they need to be due to a lack of regular price comparision and review. 

Normally businesses should have an energy contract arranged with their supplier, However businesses that move into new premises may end up on higher energy costs due to not agreeing a fixed contract with their supplier. The supplier has an obligation to provide the energy supply to these businesses but as there is no contract agreed, these businesses are automatically placed on Deemed Rates or Standard Variable Tariffs. These types of tariffs are often about 40% higher than fixed tariffs and can lead to businesses paying a lot more for their energy than they need to me. If you are not sure of your business current contract status, it is advisable to find this out promptly. There are simple ways to do this, firstly you can check your bill for your contract term and contract end date. If this is not listed or is open ended, then it may be that you are on deemed rates or SVT. If you need help doing this, please feel free to Contact Us and we will be able to help you check your contract status.

Some businesses who may have agreed a contract at a point in time can also fall into the trap of staying with their existing supplier at the point of their contract renewal due to the fact that they have not had bad service from them with the philosophy of "better the devil you know " in mind. It is estimated that due to most energy supplier's business model, renewal rates for business will be at about 30% higher than what they can offer for a new customer. At the point of renewal, it is good cost practice to seek prices for your renewals from alternative suppliers. Many suppliers offer price reduction and incentive for new customers and this can help businesses effectively reduce their cost. However with over 27 Business Energy Suppliers available in the Energy market and with different pricing methodologies, This can sometimes be a complex and time consuming exercise. A way to simplify this exercise is to get an Energy Broker to do the exercise for you. Contact Us if you need help to review your contract renewals.

2. Energy Audit

It goes without saying that "Knowledge is Power". The more you understand about your energy consumption, the more power you have to  control and minimise it.  This is why it is advisable for businesses to get an energy audit done to get a better understanding of their consumption. 

The objective of an Energy Audit is to highlight any energy improvements, monitoring and measure changes that can help reduce energy consumption.

While energy audits have become a compliance requirement for larger enterprises, it is more of a choice for smaller businesses. 

With an energy audit, you can understand your energy consumption patterns, where and when the bulk of your energy is used and which of your equipments consume the most of the energy on your premises. For smaller businesses, a DIY energy audit can simply be done by:

• Analysing your bills over a period of 12 months to build a profile of your yearly consumption.  If you spot peaks and lows, you will need to understand what causes them and if there are changes you can make within the business to reduce consumption at the peak period..
• Taking a tour of your premises and checking your lighting and equipments with a view of understanding whether there are any potential waste (ie. idle equipments/lighting that can be turned off) or changes that can be made to make them more energy efficient (eg. LED lighting to replace older flourescent bulbs) etc.
• Identifying & Compiling actions that can be taken to reduce consumption. Once areas where improvement can be made have been identified, it is advisable to make a list of the changes that can be made to improve your business energy consumption. After your review and opportunities have been noted, an action plan needs to be developed  with quick wins identified for swift application.

3. Energy Efficiency

It goes without saying that "Knowledge is Power". The more you understand about your energy consumption, the more power you have to  control and minimise it.  This is why it is advisable for businesses to get an energy audit done to get a better understanding of their consumption. 

The objective of an Energy Audit is to highlight any energy improvements, monitoring and measure changes that can help reduce energy consumption.

While energy audits have become a compliance requirement for larger enterprises, it is more of a choice for smaller businesses. 

With an energy audit, you can understand your energy consumption patterns, where and when the bulk of your energy is used and which of your equipments consume the most of the energy on your premises. For smaller businesses, a DIY energy audit can simply be done by:

• Analysing your bills over a period of 12 months to build a profile of your yearly consumption.  If you spot peaks and lows, you will need to understand what causes them and if there are changes you can make within the business to reduce consumption at the peak period..
• Taking a tour of your premises and checking your lighting and equipments with a view of understanding whether there are any potential waste (ie. idle equipments/lighting that can be turned off) or changes that can be made to make them more energy efficient (eg. LED lighting to replace older flourescent bulbs) etc.
• Identifying & Compiling actions that can be taken to reduce consumption. Once areas where improvement can be made have been identified, it is advisable to make a list of the changes that can be made to improve your business energy consumption. After your review and opportunities have been noted, an action plan needs to be developed  with quick wins identified for swift application.