It is no secret that energy costs have ramped up over the last couple of years. There are multiple reasons for this – too many to go into on this blog – but businesses have seen more money leaving their bank for bills than ever before. For some, this has meant tightening their belts, increasing their prices, or in many cases both. So how can you save money on energy costs when it feels like there is finite ways to do this? Well, as small business experts, Direct365 have been working hard to find new and inventive ways for you to cut back on energy usage through the winter and beyond. And what better way to acknowledge Big Energy Saving Week than with 5 rarely spoken about hacks to reduce your business energy costs. But before we get on to that, lets look at how things have changed for businesses with their energy consumption.
Energy Stats That May (or May Not) Surprise You
- The average electricity bill for businesses has jumped approx. 46% for electricity and 28% for gas between Q2 2022 and Q2 2023.
- Several sectors reduced their consumption between Q3 2022 and 2023. The largest were:
- Service: -5.1%
- Industrial: -2.3%
- Q1 in 2023 saw the highest number of closures since records began in 2017 (105,000) – this is likely in no small part to high energy costs impacting their bottom line.
- With 99% of UK’s businesses being small, around 100,000 of the above businesses were small sized companies, especially when factoring in that these businesses are less likely to have cash reserves to act as a buffer to increased costs.
5 Rarely Discussed Energy Reduction Hacks
Demand Side Management
Demand side management is a way to negotiate with your energy supplier to either reduce or modify your energy usage in return for a reduced rate. There are only certain businesses this may work for, but if staff can work from home, or factory production can be changed to a different, off-peak time in the day, you may be able to negotiate a lower energy bill for using your energy at a different time. The reduction in your bill may come in the form of a monetary incentive, but the fact that you could reduce your bill and get an incentive may work for businesses looking to reduce their energy costs.
Preventative Maintenance
This is probably one of the most simple solutions to implement. If you can ensure appliances and machines are operating efficiently you can help reduce your bills dramatically. For example, the Energy Saving Trust maintains that servicing boilers to get just a 10% improvement can save you £1000 a year. And this is for just one appliance. Maintenance is the most efficient way of saving yourself money on your energy bills.
On Site Generation
Are you able to invest in on site energy generation? This is an option for a number of businesses if they can afford to invest to generate their own energy. The upsides can be selling it back to the electricity grid (called a Smart Export Guarantee) to capital allowances in the form of tax relief on the renewable energy equipment you buy. These can be solar panels, wind turbines and more. Some businesses are also eligible for grants, of which more information can be found in this guide to solar panel grants for businesses.
Reduced Energy Rates at Night
Similar to demand side management, your business would look to utilise night time energy consumption to reduce your bills. But this wouldn’t exactly be a form of negotiation, instead just changing the time you use energy. This isn’t appropriate for the vast majority of businesses, but there may be some – construction, for example – that may use portable machinery that is usually charged during the day. Night time rates are cheaper than day rates and could be appropriate for some.
Utilise Free Resources Provided by Government Agencies and Energy Providers
There are dozens of websites, documents and guides that can aid you in reducing the level of energy you use and how you can reduce the costs of energy consumption. These may only be for educational purposes, but the way prices are increasing, it may be worth your time scrolling through these documents to gain any insight into keeping your costs as low as possible.
Why We’re a Good Company to Understand Business Costs
Direct365 has been working with small and medium companies for years, and it’s that knowledge that allows us to help our customers and offer the best options for them. Whether it’s our knowledgeable products team, or our helpful customer service teams, we know that finding the right solution is about knowing our services and understanding the customer’s needs.
Our UK based team are available to discuss any options or thoughts you might have about our product and services. We ensure that all of our prices are competitive, and it’s our aim to provide a great deal for our customers while also keeping the quality of service at a high level. That’s why we’re a good company to understand business costs.
How Direct365 Can Help
Direct365 are the small business experts. We offer a range of low cost, high quality products and services that help keep money in your own pocket without compromising on getting the job done. From kitchen and catering supplies to cleaning and janitorial equipment, and everything in between, we offer a wide range of items. Our catalogue of over 5,000 products are specially vetted to ensure they’re competitively priced without compromising on quality.
And if it’s services you’re looking for, you’ll be delighted to know that we leave our customers happy and many return for more. And with our 4.6/5 rating on Trustpilot, the proof really is in the pudding. With safety, waste, washroom and facilities services for all of your business essential needs, there’s no reason to look elsewhere. Direct365 can help your business stay compliant and keep your money in your pocket. For further details about our services, see the Direct365 home page.
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