Bringing Down Your Energy Costs

Business Insight
11/08/2016

Whether you are a committed proponent of green energy or simply looking to spend less on energy, there are two major ways to bring down your energy costs, use less and pay less, by switching to a supplier with a more favourable tariff for your business.

Energy is a major expense for most businesses, and despite government advice to regularly review our options and switch suppliers, an amazing 40% of businesses have never switched energy supplier according to the Competition and Markets Authority, and as a result are spending £280 million a year more than they need to.

Given the sums involved, it seems strange that managers have not been investigating the possibilities, perhaps the task is seen as too complicated and time consuming, with no guarantee that having made the effort that you will be any better off.

Most businesses find the help of an energy broker results in substantial savings. A reputable energy broker is familiar with the whole market, and once they have had a chat to you about your energy use, they will research their panel of gas and electricity suppliers to come up with a great deal for you.

The key word here is reputable, a good energy broker, will check for hidden clauses, tie ins and built in rises and time frames, they will advise you to look again perhaps 6 months before your renewal date, when they will be able to get good deals, often due to their buying power, from a variety of suppliers.

Having cut the price you pay, can you still cost effectively generate some of your own electricity from rooftop solar panels? The answer, if you have a suitable roof area and many factory buildings or “sheds” do, is yes! Despite less favourable incentives from government, the cost of installation is so much lower now that the benefits have remained fairly constant.

Solar panel electricity systems, also known as solar photovoltaics (PV), capture the sun's energy using photovoltaic cells. These cells don't need direct sunlight to work – they can still generate some electricity on a cloudy day, the cells convert the sunlight into electricity.

A 4kWp system can generate around 3,800 kilowatt hours of electricity a year in the south of England – that's the same amount of electricity as it takes to turn the London Eye 25 times. It will save nearly two tonnes of carbon dioxide every year. A 4kWp system in Scotland can generate about 3,200 kilowatt hours of electricity a year – that’s the same amount of electricity as it takes to turn the Falkirk Wheel 2,100 times. It will save more than a tonne and a half of carbon dioxide every year.

Green power is electricity that is generated from renewable energy sources such as wind, sun, geothermal, and biomass. Purchasing green power is an easy, effective way for your organization to reduce its carbon footprint and environmental impact

OK so you are sourcing your energy from the best source, you may have decided to install solar panels, ground or air source heating systems, and special energy reflective glass, but some basic housekeeping will also make a big difference.

The total electricity consumed by idle electronics equals the annual output of 12 power plants, so switch off!! Save energy and reduce greenhouse gas emissions at work by setting your computer, monitor and other office equipment to power down when not in use. Activate the power management features on your computer and monitor, unplug laptop power cords when not in use and turn off equipment and lights at the end of the day. Plugging everything into a power strip makes it easy to shut everything down at one time.

Many companies operate a policy of leaving computers on overnight, but there’s not often a logical or sensible reason for doing so. If workers turned their machines off at night, it would save 10 per cent of the total energy savings that are expected of businesses by the government, which is a good argument for making switching off company policy. And it’s not just computers that need switching off – lights and other gadgets should also be turned off at the end of each working day.

Take the lead, according to research by consultants Logical is, nearly 60% of workers would become more energy efficient at work if employers took the initiative. By adopting sensible measures to run a greener office, businesses can save thousands of pounds on their annual energy bills and reduce the carbon dioxide they emit.