With the energy price cap in the UK rising by 6.4 per cent this week (April 1st), bringing average household bills (including electricity and gas) to £1,849 per year, now’s the perfect time for businesses across all industries and sectors to consider how they can build resilience into their organisations to account for energy market fluctuations.
Although this energy price cap doesn’t apply to companies, affecting only domestic customers, businesses can still be indirectly impacted by any changes in this regard.
While companies are able to negotiate their contracts directly with suppliers, thanks to energy market deregulation, they can still feel the pinch, since the domestic price cap is indicative of trends in wholesale energy prices.
When these prices climb, it means that energy costs are increasing, which can have an impact on business contracts. Furthermore, because domestic customers will have to divert more of their income towards meeting their energy bills, it means reducing expenditure elsewhere – which could see business profits take a hit.
And, of course, if you run a business from home, you’ll be faced with higher energy bills, which is something else to take into account.
So, with all that in mind, how can businesses best go about reducing their energy bills at this time, given that there are no government schemes currently in the offing to help companies weather this latest storm.
Switch energy supplier
The benefit of a deregulated energy market means you can source your own supplier and take advantage of lower rates and better customer service elsewhere. It’s always worth shopping around to see what’s on offer, comparing energy quotes to see if you could make savings with a different retailer.
Be more energy efficient
Saving energy (and money!) can be achieved through the introduction of new more efficient ways of working, such as by using LED light bulbs, increasing the amount of natural flood in your premises, using heating controls, reducing heat loss, using lighting sensors and avoiding unnecessary energy usage with office and work equipment.
The added benefit of being more sustainable as a business is that people are increasingly interested in spending their money with organisations that prioritise their carbon footprint… so you could find it helps boost your bottom line, as well.
Install a smart meter
Installing a smart meter onsite will help you see how and where you’re using energy so you can implement the appropriate conservation strategies and evolve these over time in line with the evolving needs of your business. It also means that you will avoid having to pay estimated bills, since you’ll only ever pay for what you use.
Carry out an energy audit
Knowledge is power, as the old adage goes, and an energy audit will help you understand the energy usage of your business as a whole, allowing you to identify inefficient areas and where potential savings could be made.
If you’d like to find out more about any of the above, get in touch with the Light Up Energy team today.
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