Tackle energy costs and boost efficiency

Energy: Indigo Swan

Energy costs are a significant concern for most businesses around the UK.

About the Price Cap

Businesses are unfortunately not protected by the Energy Price Cap (introduced by the regulator Ofgem back in 2019). For households, the Price Cap limits the maximum amount a supplier can charge per unit for a typical property on a standard variable tariff.

Businesses, however, are fully exposed to market movements, which is why a purchasing strategy should be a key consideration when setting budgets. These purchases can either be made directly between the business and the supplier, through a buying group, or by using the skill and expertise of a dedicated specialist.

Navigating market pricing

Here are some top tips when considering how to reduce your business energy bills.

1. Carry out an energy audit. You need to understand where your current energy consumption is being used, then make changes to bring it down. By carrying out an energy audit – either with an online checklist or with the help of a professional – you’ll see what parts of your site are using more energy than they need to, thereby costing you money.
2. Be energy conscious. Simple changes can have a profound impact on reducing energy consumption. Encourage your team to turn off equipment when not in use, such as computers, lights and printers. Ensure heating and cooling systems are turned down or off outside working hours. Consider setting up energy-saving challenges or incentivising employees to adopt sustainable practices. Install energy efficient lighting and smart thermostats wherever possible, and consider upgrading machinery and boilers to the latest, most energy-efficient models.
3. Sort your purchasing strategy. It is vital to give your energy contracts the time and attention they deserve. You will cost yourself more money if you allow your contract to either auto-roll or lapse onto high ‘Out Of Contract’ rates. Switching suppliers is also easier with the introduction of Faster Switching, meaning you can benefit from a new provider within a couple of days.
4. Embrace renewables. If you can, think about reducing your exposure to global energy markets by generating your own on-site power. By generating your own energy, you can reduce dependence on the grid and protect yourself from rising energy prices. It also demonstrates to your customers and supply chain that you take your environmental impact seriously.

Take action

While UK energy prices continue to show considerable volatility, businesses don’t have to be passive victims of high costs. By adopting energy-saving practices, investing in efficiency measures and regularly reviewing energy contracts, companies can significantly reduce energy consumption and manage costs more effectively. Taking action now can ensure your business remains competitive, cost-efficient and resilient in the face of future energy price fluctuations.