Five Ways to Cut Your Business's Energy Bill
It can be a challenge keeping your outgoings to a minimum in the current climate, here are some simple changes you could make.
How Your Energy Bills Work
For consumers, the energy price cap is the main factor that influences the price of energy. There is, however, no price cap for businesses and they are at the mercy of the wholesale price of gas. Earlier this year, the UK Government addressed this and introduced the EBD Scheme, to help businesses with their energy bills.
The price though, is still on the rise and every penny counts, especially if you're a small business still finding its feet. This is why we've created this article, to offer you some pointers to make every penny go as far as possible.
How to Cut Your Energy Business Bills
With energy prices rising, it's more important than ever for businesses to find ways to reduce their energy consumption. By making a few simple changes, you can start to save money today.
Reminding everyone to power down computers and disconnect chargers can make a difference. You could also implement an official energy-saving initiative to reinforce your business's commitment to limiting energy use. Here, we'll take you through five simple and easily done methods for saving money for your business.
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Get to Know How Your Business Uses EnergyChecking your meter readings infrequently can make it difficult to pinpoint where exactly your peak energy usage is, which has a knock-on effect and makes it tricky to identify potential waste areas.
Smart meters can give you greater control and further insights into the specifics of your business's energy usage, which allows you to see areas in which you can save on usage. Manual readings could be all that's holding you back from eliminating unnecessary waste.
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Use Energy-Efficient Office LightingAs much as 40% of your business's energy consumption could be attributed to lighting. By adopting a savvy approach to lighting usage, you can make significant savings.
Switching from traditional filament bulbs to contemporary options like LEDs, despite the initial investment, can significantly reduce your business's energy consumption. LEDs also typically have a longer lifespan, increasing your payback from the initial purchase.
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Look for Tax Benefits, Rebates, and IncentivesThe Climate Change Levy is an environmental tax aimed at encouraging businesses to operate in a more environmentally friendly way. The UK Government offers tax reliefs and schemes to help businesses invest in green technology and reduce their environmental impact.
These include allowing businesses to claim money back on qualifying energy-efficient plants, electric vehicles, and certain types of green technology. If you choose to invest in such things, it's likely you'll eventually get the value of the investment back and then some via the tax relief you'll be entitled to.
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Turn Down the HeatUsing the air conditioning throughout the summer can add significantly to your energy bill, as can having the heating on excessively during the winter. You need to keep yourself and your employees in a comfortable environment, but even dropping the heating by 1°C can have a big impact on how much energy you use.
Depending on the nature of your business, keeping your office warm may well be the biggest energy cost you have, so using heating and cooling systems sparingly could mean a lot for your business energy bill. Cleaning air conditioning filters will also mean they burn less energy, saving you money on your bill.
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Switch Energy SuppliersEvery year, energy companies offer new deals to customers. It is worth shopping around to see if you can find a better deal on your energy bills. With the various tariffs on offer, it's important to compare prices and choose the right one for your business.
The switching process is usually very straightforward and takes just a few minutes, making it one of the easiest ways to save money on your bills.
FAQs
The amount you can save by switching energy suppliers will vary depending on your current tariff and the tariff you switch to. However, most people can save a significant per year by switching.
The biggest energy drains in a business vary depending on the type of business. Some common energy drains include lighting, heating, and manufacturing equipment.
It's always a good idea to gain a good understanding of how and when exactly to use your energy. Doing so will help you to cut costs in the future.
Your Guide to Business Energy Tax
The Climate Change LevyThe Climate Change Levy is an environmental tax aimed at encouraging businesses to operate in a more environmentally friendly way. The tax is imposed on businesses that use commodities like electricity, gas, solid fuels, and liquid fuels. The rate of CCL your business pays depends on the type of commodity you use and how you use it. The CCL is a significant cost for many businesses, but it can also motivate investing in energy efficiency and renewable energy measures.What Government Schemes are there for Green Businesses?The UK Government offers some tax reliefs and schemes to help businesses invest in green technology and reduce their environmental impact. These include allowing businesses to claim money back on qualifying energy-efficient plants, electric vehicles, and certain types of green technology:
Octopus Energy Review
What is Octopus Energy?Octopus Energy is one of the biggest energy providers in the UK and is now regarded as one of the 'Big Six'. In recent years it acquired all of the customers from Bulb, which went bust during the energy crisis, which made it into the big player it now is. Known widely as one of the cheapest places to get energy, its big status has meant it has been able to invest heavily in green energy, adding to its appeal to many customers. What does Octopus Energy Offer?One of the main selling points of Octopus Energy is its commitment to green energy and, in recent years it has been able to make a name for itself as one of the leading green energy suppliers in the UK. A 'green' energy supplier is a supplier that provides energy without adding to the amount of carbon dioxide emissions in the atmosphere. There are numerous ways of doing this, and Octopus opt for doing it in the easiest and cheapest way possible. It supplies customers with fossil fuels but then offsets this by buying the equivalent amount of power from renewable sources so, while the actual fuel they supply may come from fossil fuels, its use doesn't add to emissions. This makes it effectively net zero. This method is the cheapest way of supplying green energy, and the saving is passed onto the customer. They do this with their gas supplies but, when it comes to electricity, they only use 100% renewable sources. Is Octopus Energy Good for Small Businesses?Octopus Energy is likely a good choice for your business, as its focus on customer service and care means it works hard to make life as easy as possible. By offering things like 12-month fixed tariffs to give you more certainty, options to alter your time of use to save money, and being available over the phone or email, it ensures it's there to meet your business's needs. Its most eye-catching advantages are its constant monitoring of wholesale prices, which allows it to reduce your business's bill as soon as possible and the offer to businesses struggling with bills to explore reducing or pausing them. With clean energy, fair pricing, and good quality customer care, Octopus Energy could be a good bet for your small business.
The Big 6 Energy Companies Explained
What Are the Big Six Energy Companies?The Big Six energy companies are the six largest energy suppliers in the UK but, what you may not know, is that the Big Six has actually changed in recent years. Such changes were primarily brought on by the energy crisis the UK has faced in the last few years. In 2019, the big six were: British GasEDF EnergyE.ONScottishPowerSSERWE npower Following the crisis, and the collapse of many independent providers, the 'Big Six' currently consists of seven companies, they are: British GasEDF EnergyE.ON NextOctopus EnergyOVO EnergyScottishPowerShell Energy Shell Energy will soon be leaving the list, following its decision to sell its UK domestic energy business. After its departure, there will be a recognisable 'Big Six' again. Shell Energy will continue to supply businesses like yours, they just won't be as big a name as they are now. The Big Six energy companies play a vital role in the UK energy market and are responsible for generating and supplying energy to 90% of UK homes, along with millions of businesses. They also invest in new energy infrastructure and technologies, like green alternatives to fossil fuels. How do they Compare to Each Other?The Big Six energy companies vary in terms of size and market share. They all, however, offer a range of gas and electricity tariffs to their customers, as well as other services such as boiler covers and smart meters. British Gas is the largest energy supplier in the UK, while EDF Energy is the second largest, and is a major generator of low-carbon electricity, including nuclear power. Octopus Energy, the fourth largest supplier in the UK, is known for its competitive prices and its focus on renewable energy. ScottishPower is the sixth largest energy supplier in the UK and is a major generator of hydropower and wind power. Which is the Best for Your Business?Reviews of the Big Six energy companies on Trustpilot (one of the UK's most popular review sites) often praise their customer service, competitive prices, and range of products and services. Their size in the industry means they are able to provide many different services that small competitors cannot, making them an attractive choice for many businesses.