In this comprehensive guide, we’ll discuss the Energy Price Cap and the Energy Bill Relief Scheme. It should help you to understand more about the consequences for your company. Our business energy comparison experts will also answer some of your most frequently asked questions and provide some top tips to help you keep costs down.
Does The Energy Price Cap Apply To Businesses?
A large, busy hairdressing salon uses 4 MWh of electricity and 16 MWh of gas on average each month. Having signed a new contract in September 2022, its monthly energy costs are almost £7,000. With the scheme, however, the business will see a discount of almost 40%, meaning it will pay around £3,900.
Under the scheme, a small newsagent located in the UK with an energy bill of approximately £1,300 monthly sees its energy costs decrease to around £800. This is based on 1 MWh of electricity and 2 MWh of gas.
How To Save Money On Your Business Energy Bills
The Relief Scheme has proven to be an invaluable lifeline for so many businesses to date. There’s no denying that, even with the scheme in place, businesses are still paying out more than ever on energy bills.
How much energy you use will ultimately dictate the energy price your business will need to pay. Although switching suppliers is by far the best way to lower your bills, there are other ways to minimise the energy prices you pay to your supplier.
Let’s take a look at just some of them.
Shut down equipment when not in use
When you aren’t using equipment, it should always be turned off. We all know this, yet many of us are guilty of not seeing this idea through. While one of two computers or printers left on overnight probably won’t break the bank, if you do this regularly with lots of equipment, it soon adds up.
Take advantage of natural light
Non-domestic energy users have the highest energy consumption. Most of the costs revolve around lighting. If it’s possible and safe to do so, consider relying more on natural light.
Give your employees incentives to cut their energy usage
How much energy your company uses is also essentially down to your employees and how much they use. Speak to your employees and get them actively involved in conjuring up some energy-saving ideas. With their input, you could do a lot to limit how much energy your business uses overall.
Offer some small incentives to those who suggest the best ideas. This is a great way to get people thinking and proactively taking on the responsibility of helping to cut business costs.
Update your equipment
Consider how energy efficient your equipment is. If you have faulty or older equipment, you will likely lose a sizable portion of money in running these. Upgrading to equipment with a good energy rating can help to keep the energy price you pay down.
Invest in timers and thermostats
Preset your timers and thermostats. After business hours, there’s no need to keep an empty building heated or air-conditioned.
Use a smart meter
With a smart meter, you can easily reduce your business energy consumption over peak times of the day. If you haven’t already got one, many suppliers will offer one to you if you make the switch to them.
Roofs, cavity walls, and lofts are notorious for allowing valuable heat to escape commercial buildings. If this is the case for your business, consider insulating the areas where you are losing heat. Also, think about your windows. If you don’t have double glazing, consider getting new windows.
Start your journey and compare electricity rates with us today. Use our price comparison tool and in less time than it takes to make a brew, we’ll compile your best prices from the UK’ s best suppliers.
It’s a worrying time for many businesses regarding rising costs, and energy usage is no exception. Thankfully, there are schemes available that can help UK businesses to ride out the storm of energy price hikes.
Use the Business Energy Comparison website to compare business gas prices and electricity tariffs. Otherwise, you could lose money and overpay on your gas and electricity bills. A business electricity comparison is one of the best things you can do to protect the longevity and success of your business.
Frequently Asked Questions
If you find yourself struggling to pay your business energy costs, it’s vital that you don’t ignore it and hope the problem goes away. While it is understandably stressful, you shouldn’t panic. Contact your energy provider as soon as you foresee any difficulties paying your bill. If you do so, it may mean your provider is able to offer you a grace period to pay your direct debit.
Your provider may also be able to offer you invaluable advice. Don’t delay in speaking to them. Many business owners are struggling, and customer service representatives are there to help you. It’s imperative you talk to them as soon as possible. Failure to do so, along with not being able to pay your bills, could potentially lead to severe financial implications in the future.
Ofgem watches the energy market to set a price that they deem fair in energy. They aim to set a price that reflects the global situation. The government is also playing a part in helping businesses with the Relief Scheme and the Energy Price Guarantee.
Ofgem states they are actively working to stabilise the energy market in the long term. This should help to reduce the country’s heavy reliance on gas. Ofgem claims it will help to defend customers from any price hikes in the future.
The Energy Bills Support Scheme is a government-funded scheme that provides a £400 non-repayable discount to domestic customers to help with their energy bills over winter 2022 to 2023. This Energy Bills Support Scheme should not be confused with the relief scheme available to businesses.
Business Energy Comparison
Corby Innovation Hub,
Corby, NN17 1NN
0800 007 4001
Trading name of Utility Bidder