As a small business, keeping your head above water in terms of finances can be quite a task, especially in the early stages of development. With half of all new businesses ending within the first three years, smaller enterprises must do whatever they can to reduce overheads within reason. Simultaneously, sustainability is more important to UK consumers than ever before. With both these facts in mind, small business energy efficiency is something that all operators should be mindful of.
This guide will offer some valuable insights into how to be energy efficient as a small business, whether transforming an office or warehouse space.
Benefits of energy efficiency for small business operations
If you’re on the fence about whether to implement a small business energy efficiency program, it’s important to consider the benefits it could have on your operation.
Cost savings: Being energy efficient is directly related to saving costs on gas and electric bills.
Increased sustainability: Beyond doing good for the planet, increasing sustainability is also a great way to enhance brand reputation.
Eligibility for grants: There are several energy efficiency grants for small businesses, allowing for refurbished technology at discounted rates.
How to achieve small business energy efficiency
Conducting energy audits/mindful observation
Having a professional audit done is a great way to identify your strengths and weaknesses in terms of energy efficiency, such as:
Draughts/air leaks
Insulation issues
Outdated lighting
Faulty HVAC systems
In terms of increased mindfulness, tools like Smart Meters are a great way to better observe your energy consumption, allowing you to make strategic decisions in real-time.
Lighting adjustments
The most obvious lighting adjustment is to replace incandescent bulbs with LED lighting, known to use up to 75% less energy. Another system for increasing efficiency is time/movement-sensitive lighting sensors, ensuring only occupied rooms are being lit during working hours. Finally, simply embracing natural light when and wherever possible can enhance efficiency.
Using renewable energy
Renewable energy is known for having a better return on investment (ROI) than energy derived from fossil fuels, while also often having a much lower emissions profile. For example, wind energy can be 100% renewable and produce no emissions, while offering a cheap and effective alternative to fossil fuels. Business owners can also generate their energy if they invest in built-in turbines or solar panels.
Choosing a new business energy supplier
Finding the right supplier could be crucial for small business energy efficiency in financial terms. With a better tariff and price point, you could easily get more for your money, enhancing your energy efficiency.
To request competitive energy prices and potentially find a new business supplier, visit our website today. We’re committed to keeping business owners and management in the know when it comes to efficiency and getting the most for their money.
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Understanding the average energy consumption of a small business is essential for effective budgeting and forecasting energy costs. By knowing these figures, small businesses can better manage their energy costs.
While energy usage can vary based on the size and type of business, our latest blog delves into the specifics of energy consumption for small businesses, including electricity and gas usage.
What is Considered a Small Business?
In the UK, small to medium-sized enterprises (SMEs) are defined as businesses with fewer than 250 employees and an annual turnover of less than £50 million. Specifically, a small business has fewer than 50 employees and a turnover of under £10 million, while a micro business employs fewer than 10 people and has a turnover of less than £2 million.
On average, small businesses in the UK consume between 15,000 kWh and 30,000 kWh of gas annually, and between 15,000 kWh and 25,000 kWh of electricity annually.
Industry Variations in Energy Consumption
The amount of energy consumed can significantly differ by industry. For example, businesses in manufacturing typically use more energy compared to those in other sectors. High energy-consuming industries also include construction and agriculture.
Data from the Office for National Statistics (ONS) indicates that the service sector—encompassing small businesses like retail stores and restaurants—experienced a 6% decrease in energy consumption from 2019 to 2020. This shift may reflect a growing awareness of zero-carbon energy and the environmental impact of fossil fuels. Many service-based small businesses have adopted measures to lower their energy usage, contributing to reduced annual consumption.
How to Monitor Your Business Energy Consumption
If you’re concerned that your business energy usage exceeds the average for your sector, it may be time to consider installing a smart meter.
Smart meters aren’t just for domestic homes! A smart meter allows you to monitor your energy usage effectively. It provides real-time data, enabling you to manage your consumption more efficiently. Additionally, all readings are automatically sent to your business energy supplier, eliminating the need for manual meter readings. This ensures more accurate billing and helps avoid overestimations.
If you’re interested in learning more about smart meters, don’t hesitate to contact our team!
What to Do If Your Business Energy Consumption is Too High
If you have a smart meter installed and notice that your energy consumption is higher than expected, consider the following tips to reduce usage:
Inspect Your Equipment: Evaluate your business equipment and upgrade to more cost-effective equipment if necessary.
Power Down: Turn off electrical equipment when not in use, including lighting and heating, which can significantly impact your energy bills.
Regulate Temperature: Set a comfortable temperature on your thermostat and maintain it consistently.
Promote Energy Awareness: Foster an energy-saving culture among your employees.
For other great tips on lowering your small business energy consumption, check out our blogs!
Contact our friendly team for a quick quote to lower your business energy bills.
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While Jeremy Hunt did not mention the EBDS Scheme in his Spring Budget announcement, it is confirmed that the support scheme ends 31st March 2024.
For small businesses utilising the support of the Energy Bill Discount Scheme may feel slightly left in the dark now, as no alternative or additional support has been mentioned by the government. So what now?
Costs of running a small business in 2024
Although there’s certainly mixed opinions regarding the scheme and the genuine support that it did or could offer SMEs, having little to no other options leaves many small businesses wondering about the future. Despite predictions for the energy market looking better for 2024, many small businesses will still be dealing with the financial fallout of the energy crisis and of course the other issue of the cost of living crisis.
Ensuring staff are paid enough to cover their own bills, business rents increasing and difficulties in a variety of sectors, there will continue to be concern about finances and staying afloat for small business owners in 2024.
A desire for tailored support for small businesses
While there is not a single scheme or support programme set to succeed the EBDS Scheme as of yet, there’s some discussions surrounding what SMEs truly desire from the government. Research done within the industry has highlighted that small business owners wish for the government to acknowledge their want for energy support that is tailored to their unique needs, rather than schemes that many do not deem to be adequate.
Microbusinesses especially, have called for bespoke assistance from the government for those that have been most affected by rising energy prices. And many are calling for regular winter support to be introduced, making sure that each year businesses are thoroughly supported financially to survive the often challenging months of winter and the extra costs the cold weather presents businesses.
What can small businesses do now?
However, since there is yet to be any response or correspondence from the government regarding these concerns and desires, here are some examples of support you can currently access and will be able to access beyond the end of the EBDS Scheme.
The best method of support if you can not afford to pay your current energy bill is to contact your business energy supplier and negotiate a payment arrangement that works for your business and them. At D-ENERGi our team of customer service representatives are on hand to offer the best possible advice and guidance for all our business customers.
Alternatively support from Citizens Advice and Ofgem may help if you are struggling with what to do next. From understanding how to switch business energy suppliers to knowing if you are overpaying for electricity, these organisations offer some of the best advice for businesses.
Cutting your energy consumption
And while we await the government’s offers of more assistance through a new scheme or financial plan, you can also make a difference by actively reducing your energy usage to maximise your savings. From better energy management practices to improving your energy efficiency, there are many small steps you can take for a positive impact on your business. Our blog explores a wide range of these topics. Including the best advice for businesses wanting to cut energy costs and how to cut your energy consumption.
To conclude:
While we remain hopeful that the government will continue to offer support for small businesses with their energy, we understand that from the latest budget, much more focus is being placed on inflation. Meaning less attention may be given to the energy market over the next year. Using our advice, we suggest that all small businesses worried about the end of their government-backed support to reach out for more information from our customer support teams. We can discuss next steps and future payments, helping to ensure you are on the right tariff and are able to pay your energy bills.
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While it’s true that all small businesses should pay close attention to their energy consumption in order to keep on top of it and to ensure their energy costs do not exceed unmanageable highs, there are particular types of small businesses that use more energy than others. Which, we have highlighted in this blog and offered our expert advice for these specific businesses and industries. With our best tips on how to manage consumption with industry specific notes on cutting consumption.
Small restaurants and cafés
With such high intensity equipment, from industrial-sized ovens, to fridges, freezers, and food preparation tools, it is no surprise that restaurants and cafés are some of the highest energy consuming businesses. While chains and large restaurant businesses may have the cash flow to manage rising costs, smaller businesses such as family-owned restaurants and independent cafés may struggle.
And in recent years, examples of this have been seen throughout the country. With the industry taking a big hit due to the recent energy crisis. Walking through highstreets it is clear to see that many long-standing food businesses have taken a hit, either choosing to open only on weekends or closing indefinitely.
In order to save money in areas of the business, where possible, following these tips will help cut down energy consumption:
Clean and service all cooking and prep equipment regularly to ensure it is operating to its full potential.
Turn off the equipment when not in use. For example, your baking ovens. Once used to cook your fresh loaves and cakes in the early morning, switch them off and do not turn them back on again until the next day.
Keep your thermostat at a constant temperature. Even turning this down by 1 degree could save you hundreds in energy bills.
Ensure that any warm or hot equipment is kept away from cooling appliances like fridges. The warmth of the ovens and the heaters will only make the fridges work harder to stay cool.
Hair salons
Another industry that undoubtedly uses a lot of energy is the hair and beauty industry. With so many tools and a constant flow of customers through the door, the demand for electricity, especially, is high. And while long hours and busy periods means tools like hair dryers, straighteners, curling irons, are switched on and used frequently, some of the highest demand comes from the need for a constant supply of hot water. From washing hair to keeping towels fresh with on-site laundry facilities, all very important for making sure that not only is the service the best it can be, but industry standards are met. The following tips have the ability to help hair salon owners keep energy consumption down and cut costs:
Consider investing in low-flow nozzles for your salon’s sinks and taps to minimise the amount of hot water used on a daily basis.
Avoid using space heaters, where possible. Research indicates that the use of space heaters and similar equipment contributes to some of the highest amounts of energy used in the service industry. If you’re struggling to keep your premises warm during winter months without a space heater, consider what may be causing this and carry out an energy audit of your salon.
Consider switching to low-power settings when operating hair tools, especially tools like hair dryers.
Avoid overloading electrical power sockets and extension cables. Only plug in the tools you need at each given time.
Boutique hotels and B&Bs
With operations and staff on-site from day to night, hotels and B&Bs are another of the highest energy consuming businesses in the UK. Having to provide a high level of service, making sure hot water is constantly available to guests, lighting can be used in all rooms, hot food can be served, and laundry facilities can be operated by staff. There’s so much that goes into running these businesses that requires a huge amount of electricity.
One of the best, most cost-effective and simplest ways a hotel or B&B can cut their energy cost is to reduce the use of lighting and source natural light, where possible. This could simply mean removing old netted curtains or shades and allowing the sunlight to light communal areas and rooms that are not being used.
Set timers on HVAC units, and encourage guests to keep these at a regular temperature.
Switch to energy efficient devices in guest rooms.
Update old lighting with LED light bulbs.
Use motion sensor lighting in communal areas and bathrooms so guests can and staff do not leave lights on unnecessarily.
For more support and guidance to keep your small business’ energy costs down, consider contacting your business energy supplier and discuss your concerns. At D-ENERGi our friendly support team is always happy to help our business energy customers. Considering ways we can support your business, deciding upon payment plans or reviewing bills and usage. What’s more, if you would like greater control over your energy consumption, we are supporting small businesses with the smart meter roll out scheme, click here to find out more.
Contact D-ENERGi today for more information about your energy bills or to consider switching to us to lower your business energy bills.
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Running a small business, whether you have your own cafe, boutique clothing store, repair shop, or florist, is not always easy. There’s lots to consider and plan for, and with a small team this can create a number of jobs for one or two people to juggle. One of the biggest challenges for small business owners is managing finances and keeping on top of this.
When it comes to managing business expenses like water, electricity, and gas, it is important to plan and prepare for increases and unexpected bills. Not only will this allow you to budget and avoid nasty surprises, you will be preventing these unexpected expenses from creating any damaging holes in the company wallet.
Why might you incur an unexpected expense?
Unexpected expenses can come from just about anything and anyone. Business expenses are guaranteed and are required to be paid in order to keep your business running. Although expenses like rent and business insurance are important, in this blog we are focusing on business utilities, which includes bills like energy and water.
Despite paying monthly for your business energy, it is not uncommon for business energy bills to rise and fall. The same can also be said for water bills. When your demand and usage for electricity, gas, and water increases, so too do your bills.
During uncertain times, such as a cost of living crisis or the global energy crisis that occurred between 2021-2023, energy costs can and will quickly change. Your business energy rates are therefore subject to change unexpectedly. Although business energy suppliers will give you some notice, market changes can happen overnight and may require a big increase to your monthly payments. Having some awareness of the risks that the market can pose on your expenses is important for ensuring you have some money put aside in case of such events.
Monitoring your small business energy charges
Monitoring your small business energy charges is important for a number of reasons:
It can help you to identify areas where you can reduce your energy consumption, which can save you money on your bills.
It can help you to identify any unusual spikes in your energy usage, which could be indicative of a problem with your equipment or infrastructure.
It can help you to track your energy consumption over time, which can help you to set realistic energy efficiency targets.
There are a number of ways to monitor your small business energy charges. One simple way is to keep track of your energy bills over time. This will give you a good idea of how much energy you are using and how much it is costing you.
Another way to monitor your energy usage is to install a smart meter. Smart meters are devices that track your energy consumption in real time. They can be installed on your electricity and gas meters, and will provide you with a detailed breakdown of your energy usage by appliance or area of your business. This information can be particularly useful in helping you identify specific areas of your business where you may be able to cut down on energy usage and lower your energy costs overall.
Government support for small businesses
While there are options for small businesses to help tackle unexpected costs, the UK government also offer a number of services and schemes to support small businesses. For example, the Energy Bills Discount Scheme which is currently running until April 2024. We have provided further information about applying for the scheme and the support offered on our blog.
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As a business owner, you may have a lot on your plate running your small business. From managing employees and finances to marketing and sales, the list can seem endless. Amidst these tasks, one aspect that often gets overlooked is energy consumption.
In our latest blog we will offer some tips on how to pay close attention to your business’ energy usage, and also provide our advice on what to do if you are currently dealing with rising energy bills.
Why your energy usage is so important
Energy consumption is an integral part of running a small business, and it impacts your bottom line in more ways than one. Energy is a significant expense for most businesses. The cost of electricity, gas, and other forms of energy can grow quickly and significantly impact your monthly budget.
Moreover, being mindful of your energy usage can also have a positive impact on the environment. By reducing your energy consumption, you can decrease your carbon footprint and contribute to a healthier planet.
How to determine your business’ energy usage
The first step in understanding how much energy your small business is using is to track and monitor it. This can be done through utility bills and by paying attention to the equipment and appliances you use on a daily basis.
However, thanks to the wonders of digital technology we can now also review energy usage with a handy smart meter. A device that allows you to see your energy consumption in real-time. With a digital display you can choose to see for yourself how much energy your appliances use but also how much this will cost you. At D-ENERGi we have been supporting the smart meter roll out, providing our business energy customers with installations and set up, more here.
Another way to determine your energy usage is by conducting an energy audit. This involves a professional auditor coming into your business premises and evaluating your business’ energy efficiency and identifying areas where improvements can be made. These energy audits can provide you with a wealth of information and advice on how to reduce your consumption and save money. If you’re struggling to identify areas of your business where you may be able to save, we would recommend an energy audit.
What to do with rising energy bills
If your energy bills are continuously rising, one of the first things you should be doing is addressing your energy consumption. Being able to pay close attention to your usage and reduce the use of particular appliances or machinery, in periods when they are not required, will make a big difference to your energy bills.
If you are concerned about your energy usage or do not understand the information provided on your energy bills, contact the D-ENERGi team for advice and guidance.
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