The cost of energy is on the rise. If you’re a business, you may be asking “why are gas prices so high?” Well we can answer that.

Why are gas prices so high?

This year has seen an unprecedented shortage of gas around the world, and this has hit customers hard. Only across the last few weeks, as of 4th November 2021, 21 energy companies have gone bust from the increasing cost of purchasing energy. And there are expected to be more casualties. Gas prices have risen because the fuel companies have less of it, so it becomes of more value. This, in turn, affects the supply chain right down to the customer.

The question is what this means for businesses looking to avoid paying even higher rates of energy to their provider. We’ve got the low down.

Why is there an energy shortage?

There are a couple reasons why there is an energy shortage in the U.K. The main reason is because there was a particular cold winter last year, so usage was up during 2020 (probably as more people were home due to the pandemic). This, in turn, led to production falling behind demand, and stockpiles being depleted.

What doesn’t help is that the UK has some of the smallest gas storage of the larger European economies, meaning that any small change in production has a larger knock-on effect to U.K. customers.

A lit gas stove hob.
Gas prices are rising and it is having a big affect on businesses and homes.

What can I do to reduce my business energy prices?

I think this question is being asked by people now because of the price increase but could arguably have been asked at the very start of their business journey. This is because using less energy costs less in the short and long run.

Now is still a good time to ask the question, because of the price-rise, but also because relying on gas to power our homes and businesses is soon to be a thing of the past. And while green energy is only a growing industry, we don’t know it’s cost when it becomes our main source of energy. And considering green energy production reduced in the UK last year because wind sources were too low, using less could be a habit you want to get used to.

Energy-saving tips

Below are a few actions you can use to reduce your energy usage:

  • Turn of the lights during brighter times of the day. Sat in a brightly lit office with the lights on is a pointless action. You’re literally throwing money down the drain.
  • Say goodbye to standby. Most businesses use computers now, and many operate in stand-by when they’re not used. A computer monitors alone costs only 70p a year in stand-by, but when you add in the computer itself, and however many systems you have in your business, the cost soon adds up.
  • Install LED lightbulbs over standard bulbs. This may seem like a boring or inconsequential change, but it could be the biggest. Over its lifespan, an LED bulb will cost around £19. Yet a standard incandescent bulb would cost a whopping £152 over the same period. If you take a conservative estimate of 10 bulbs, you could save £1380. If you average a bulb lasts a year, maybe two, that is a lot of wasted money.
  • Keep your office warm. Heating is one of the biggest uses of energy, and most of our homes and business use excess energy trying to heat up cold spaces. Even by improving the temperature slightly, you can reduce your heating bill. Reducing drafts and improving insulation will reduce energy costs drastically.

Granted, these are only a few things you can do to reduce the costs of your energy. But these small changes in culture and purchasing can reduce business overheads no end.

Direct 365 are passionate about eco and several our products are good for the environment. To see our range, visit our eco-friendly page.