We break it down into seven, straight-forward steps.
Tips to reduce your business energy consumption
If you’re looking to reduce your business energy consumption, then you’ve come to the right place. Below we’ve given you some ways you can cut down and save money on your annual business energy bills.
#1 Switch energy suppliers
If you’re looking to really save money, we’d recommend you make a business energy comparison and see how much you could save with a different business energy supplier.
Customers who switched to a three-year business energy contract between January and May 2020 made a massive average annual saving of £1,305*.
An energy switch through Energy Helpline is a quick and free way to reduce business energy consumption, with absolutely zero hassle. In order to make a significant saving on your yearly business energy, switching to a cheaper business gas and electric deal should be your first port of call before you look to save elsewhere.
#2 Pinpoint usage with a SMETS2
Find the sources that are costing you the most money each month using a new smart meter.
New smart meters are able to give you itemised electricity consumption, detailing how much energy different appliances around your home are using allowing you to reduce your business energy consumption one section at a time, and it’ll work in the exact same way for your office or other place of work. You’re usually able to do this at your convenience using your energy supplier’s mobile app.
#3 Take the appropriate action
Cutting back on energy in your office isn’t like cutting back at home – your employees aren’t your family members.
Saving your gas and electricity in your business might prove a little more difficult than just simply going around turning the lights off and cutting down how many washes you do a week – it’s going to take some planning.
Using your SMETS2 you might find there are some appliances in particular that you’d be better off replacing, or at least servicing. Old dishwashers and boilers aren’t going to be anywhere near as efficient as newer models, and it might pay dividends replacing them before they start costing you more to run. After all, your employees need somewhere to put their coffee cups at the end of the day, and you certainly don’t want any of them being cold in the winter!
Replacing your old-fashioned electric kettle with a water boiler or hot tap will mean your employees will only use the necessary amount of water, instead of filling the kettle to the brim and boiling it to make one cup of tea or coffee.
#4 Rely on your employees where you can
Encourage the switching off of all equipment when it’s not in use. When your employees go on lunch, ask them to boot down their computers completely, and especially at the end of the day when they leave to go home.
If your employees work on laptops, charging them only once they begin to lose significant battery life could also help you cut down on unnecessary energy usage, too.
#5 Maintain remote/home working
If home working during the pandemic hasn’t had any effect whatsoever on your company’s performance, why stop?
You could introduce more of a flexible approach to working when the coronavirus pandemic comes to an end, and encourage more of your employees to maintain some form of remote working. This will drastically cut back on your office or workspace’s energy consumption, probably to an all time low.
#6 Take advantage of tax breaks
Businesses typically pay 20% tax on their energy, compared to domestic which only pays 5%. However, If you only use 33kWh electric and 145kWh gas a day on average, you’ll pay the same tax rate as a domestic energy bill (5%), avoiding a hefty tax bill and saving yourself a nice chunk of change.
As you’ll know, businesses have to pay a Climate Change Levy, also known as CCL, at a rate of 0.541p per kWh for electricity and 0.188p per kWh for gas. However, you don’t have to pay the Climate Change Levy:
- For any renewable business energy you use
- If you only use 33kWh electric and 145kWh gas a day on average
- If you run a residential element to your business, such as a B&B (these businesses will also only pay 5% VAT on gas)
Join an energy supplier offering renewable electricity and you’ll cut your energy outgoings considerably.
#7 Switch again!
Just because you’ve switched your business energy once, doesn’t mean you can’t do it again.
We recommend you make an energy comparison at least every 6 months to make sure you’re still on the cheapest deal available – maybe even sooner given how volatile the business energy market is.
Although, watch out you aren’t hit with an exit fee before you initiate the switch. An exit fee will depend on the energy supplier you’re with and what type of tariff you’re on. Typically a default standard variable tariff won’t have any exit fees attached, but a fixed tariff might, so be sure to check with your current supplier before you switch.
*Of Bionic customers who made a saving on a three-year business energy contract between January 2020 and May 2020, the average amount saved was £1,305.