Small business energy savings improve economic and environmental outcomes. Find out how you can make savings for your business.
Now more than ever, it’s vital for small businesses to ensure that their finances are stable.
It’s also no secret that business energy costs are a significant overhead for most companies. However, it’s often not viewed as a major avenue for reducing costs.
Here, we’ll look at a range of measures that small businesses can implement immediately to maximise savings on business energy.
Small Business Energy Solutions
Check the Market
This is the easiest method to save. It’s important to review your small business energy switching options to find the best deal at the best price.
Many businesses don’t take this option on, with nearly 46% of small businesses not reviewing their options at the end of a contract. This means that many UK businesses are significantly overpaying for their business gas and electricity.
At the end of a contract, small businesses are typically shifted automatically to a more expensive business energy deal. This can be avoided by sorting a cheaper contract in advance of the renewal date.
Ofgem indicate that a lack of competition in the business energy supply sector costs consumers around £2.9 billion a year. It’s also worth mentioning that some suppliers are actually able to reduce electricity prices by 10%, a possible saving of £1.6 billion. However, they won’t actually do this unless businesses are proactive in exploring their options.
With BusinessEnergyQuotes.com, we have established relationships with over 21 business energy suppliers – the most on the market. We’re able to provide business energy comparisons using actual consumption data. This means you’ll have accurate quotes, giving you more confidence in your energy budget.
We also provide professional Account Management for the duration of your contract. You won’t even need to negotiate with suppliers. We’ll do the heavy lifting for you.
Compare Business Energy Prices
This is an even quicker method of finding business energy savings. If you haven’t switched provider for a while, it’s worth getting a quick, no-obligation quote online to compare business energy prices. You could find a cheaper supplier which offers you the chance to save on your costs.
Using our online business energy comparison tool, BusinessEnergyQuotes.com, you’ll find business energy comparison results in under 10 seconds.
For larger businesses with more bespoke requirements, or for businesses who have specific energy requirements, there’s also an offline telephone channel available for free on 0330 0300 200.
This method of online business energy switching is big change to the accepted method in the industry, where businesses would have to negotiate independently with each individual supplier.
As a result, BusinessEnergyQuotes.com is designed with simplicity in mind, which is why it’s 100% online.
Consider Small Business Energy Suppliers
Many businesses assume that reliable energy supply comes only from the ‘Big Six’ suppliers.
While the ‘Big Six’ energy suppliers – Centrica PLC (British Gas), E.On UK, Scottish and Southern Energy (SSE), RWE Npower, EDF Energy and Scottish Power – have a large market share, they aren’t the only suppliers available to small businesses.
Smaller energy suppliers have started making a positive impact in the business energy market. They provide competition with the ‘Big Six’ and drive down prices on more attractive tariffs, offering greater potential for savings.
It’s a simple and proven method of saving on your business energy: cut your consumption.
Heating and lighting will certainly account for a large portion of your energy bills. Preventing these unnecessary energy drains will return savings for your business.
For every 1°C of overheating, your business heating costs rise by 8% according to the Carbon Trust. This can be combatted by preventing unnecessary heating in infrequently used spaces such boardrooms or conference rooms, or by maintaining equipment regularly.
In terms of your lighting, it’s estimated that energy-efficient lighting could reduce annual electricity bills down by 66% every year. It’s a small investment for a giant saving.
Recently, some businesses have begun to generate their own power to reduce cost and emissions. Generating your own energy could be one of the best ways to ensure both savings and sustainability, according to energy experts.
For businesses with the capacity to generate their own energy, wind power could provide between 176 MWh to 15,000 MWh of energy a year, dependant on the maximum power output of the turbine and wind conditions.
A conservative calculation suggests that this self-generation could provide businesses with over 50% of their energy needs, almost halving your energy bill.
The most significant business energy savings can be made through kVA correction. It may not be well-known to some: kVA (kilo-volt-ampere) is a unit which expresses power. Your local Distribution Network Operator (DNO) assigns your business a kVA level.
Having the correct kVA is vital. If you overestimate kVA, you will be paying for energy you do not use, and your bills will be higher as a consequence. If it’s too low, you’ll put the network under stress and make your site and even neighbouring sites more susceptible to power failures. And, you’ll also face excess capacity charges which are typically very high.
More worryingly, drawing capacity that goes unused from the grid has serious environmental consequences. As much as 54% of UK electricity supplied by the network is wasted. This results in unnecessary consumption of natural resources. In turn, this increases your carbon footprint and releases more greenhouse emissions into the atmosphere.
The optimal kVA level is just above your maximum demand. All businesses should be analysing kVA usage to ensure it’s set at the right amount to maximise their savings.