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How to Reduce Small Business Energy Prices

While energy prices may have started to decrease in 2023, the market remains highly volatile. We experienced a mild winter in the UK and we no longer rely as heavily on Russian gas. This has seen the wholesale price of gas decrease – although, prices remain relatively high.

The energy situation could worsen come winter 2023, which could cause bills to soar once again.

This would strain companies of all sizes. Businesses have often been left out of energy price caps, resulting in sudden closures and job losses.

Instead of relying on government initiatives to save your small business, there is a wide range of energy-saving tactics you could implement to make your enterprise more self-sufficient.

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Switch Your Energy Supplier

Switching your energy supplier is one of the best ways to save on business electricity prices. Some small businesses are reluctant to switch as they view it as being a risky business decision, especially in this volatile time. However, deciding to stay with the same business energy provider could be a far worse decision, especially if you’re being charged over the odds.

With the help of a good business energy comparison site like Business Energy Comparison, there is minimal risk involved in switching energy suppliers.

Your energy supply would remain exactly the same; all that would change is the amount you pay for the energy.

There is a wide range of energy suppliers to choose from, from Scottish Power to EDF. Each of these suppliers offers unique SME business energy rates, so it’s definitely worth shopping around for.

Carry Out an Energy Audit of Your Business

Before trying any of the other steps listed in this article, you need to first identify the source(s) of your energy loss. This can be done by conducting an energy audit – a thorough examination of your work premises to find sources of high energy usage.

Exactly how you should conduct this energy audit depends on the nature of your business. However, it should involve checking your total energy usage and finding solutions to use less. It should also involve inspecting all your energy-consuming and water-related devices and determining the energy usage of each.

In particular, inspect the energy levels of your lighting, computers, and kitchen appliances. Resolve any issues any of these items are experiencing, and invest in energy-saving alternatives if necessary.

For example, if your office still uses incandescent bulbs, you can reduce energy prices significantly by switching to LED.

On top of this, you should check for:

  • Leaks (water, air, etc.)
  • Insulation issues
  • Broken windows and doors
  • Broken HVAC systems (i.e., broken filters, leaks, broken seals, etc.)
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Switch off Computers and Other Equipment

Leaving your computers on standby overnight could be driving your business electricity prices up to extortionate levels. To reduce unnecessary waste, you should encourage your employees to turn off their devices at the end of the working day – or, preferably, whenever they’re not using them.

This should apply to other office equipment, including tablets, printers, photocopiers, or anything else that consumes electricity.

By reducing your equipment use to only when you need to use them, you make your business more energy efficient.

Design Elements

Keep the Office Warm and Your Bills Low

While investing in proper insulation and double glazing may seem like a significant upfront cost, it would be worth it for the long-term savings. Plus, they allow you to keep your office warm throughout the winter without totally breaking the bank.

You should also make sure to adjust your thermostat to only heat your office during peak office hours. This way, you’re not burning energy during non-working hours. This way, you only pay for heat that’ll actually be used.

Additionally, you should look to use natural heat sources as much as possible. If your office windows get a lot of sunlight, make sure to open the curtains to allow as much heat to get in as possible.

Use Natural Gas for Heating

Using natural gas instead of electricity is another way to bring your business energy tariffs down. Natural gas is readily available in most parts of the UK and is supplied via your pipework. It’s more affordable than business electricity and provides a consistent heating source for your small business.

However, it is not as environmentally friendly as electricity. The amount of damage that using natural gas causes depends on several factors, including extraction and transportation.

Keep Heaters, Radiators, and Air Vents Clear

As part of your energy audit, you should check your heaters, radiators, and air vents for any signs of blockages.

These appliances need to be kept clear to ensure maximum energy efficiency. If blocked, heat gets built up in one area of your office. Not only does this prevent heat from being evenly distributed through your office space, but it also means you waste a lot of energy heating a single area.

Stay Cool and Cut Costs

Instead of keeping your air conditioner on all through the summer, you could stay cool and cut costs by using smart energy strategies. These strategies include using natural ventilators as much as possible, such as windows, especially in the morning and early evening.

Also, keep blinds and curtains closed when the sun shines into the office. This will keep the space cool, with a reduced dependency on air conditioning.

Look into Your Business Water Usage

Examine any item in your office space that uses water and replace anything that burns your energy supply.

For example, if your kitchen and bathrooms still feature traditional taps, consider replacing them with sensor taps. This will prevent water from running when not in use.

If your office kettle takes a long time to boil, consider replacing it with a quicker and more eco-friendly kettle. Or, implement a water limit on the kettle.

Be Smart with Energy Management

Installing a smart meter will give you greater control over the amount of gas and electricity your office uses, and also gives you a better idea of how much your energy bills will be month-to-month.

You can use the connected app to identify times when you’re using too much energy. This will help you plan and implement changes that will reduce your energy usage.

Take Advantage of Tax Breaks

There are several ways you can receive tax breaks as a small business in the UK that can make your energy bills more easily affordable.

Businesses can receive tax breaks on the Climate Change Levy (CCL) for carrying out energy-efficient initiatives. For example, if you participate in the Climate Change Agreements (CCAs) or the Carbon Reduction Commitment (CRC), you may be given a discount.

Introduce Flexible or Remote Working

If you give your employees the option to work from home, less of your team will be spending energy in the office. If you set certain days for remote working, you could save entire days’ worth of business electricity bills. By detailing these remote working days to your energy supplier, you could even receive reduced business electricity tariffs.

Get Employees Engaged

The only way you’ll be able to reduce your gas and electricity bills is if you get your employees engaged in your initiatives. You should try holding educational workshops where you teach employees about the importance of energy saving. You could also provide training, and be transparent about your gas and electricity saving goals.

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Understanding Your Business Energy Bills

Understanding your energy bills is key to implementing strategies to reduce them. It allows you to effectively budget and plan how much energy you need to reduce your consumption. Understanding your bills would also help you meet the criteria of any energy bills discount scheme offered by your supplier.

Compare Business Energy Rates with Business Energy Comparison

Looking to switch business energy suppliers? At Business Energy Comparison, our brokers and consultants can guide you through the energy market and find you the best business energy deal.

We work closely with industry leaders, such as SmartestEnergy and British Gas, to find the best business electricity rates for our customers.

Besides small business energy comparison, we can also help with:

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Frequently Asked Questions

Do small businesses benefit from the energy bill relief scheme?

Yes, businesses can receive discounted energy prices thanks to the energy bill relief scheme. This will make the price charged by business electricity suppliers slightly more manageable.

Do small businesses benefit from the energy price cap?

No, small businesses do not benefit from the energy price cap – this scheme is reserved for residential properties.

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