How To Reduce Your Commercial Energy Costs

How To Reduce Your Commercial Energy Costs

by David Redmond on 9 Jan, 2012

Commercial energy is an essential product for businesses and organisations, enabling them to conduct all of their necessary business operations throughout the working day. Energy costs for businesses, however, can often be quite high. This prompts them to look for ways in which prices can be reduced, helping them to reduce their overheads and increase their profit margins.

Reducing the costs on commercial energy can be achieved fairly easily. Businesses simply need to monitor their energy consumption levels and make changes and adaptations where necessary. Implementing necessary devices and adopting more environmentally friendly practices helps businesses to lower the amount of energy they use and therefore reduce their bills.

The desire to reduce these bills was intensified following the introduction of the Climate Change Levy. This occurred a decade ago in 2001 and, according to ACR News (1)  increased commercial energy costs by as much as 10%.

This change prompted businesses to reconsider the ways in which they used energy within their workplaces, helping to lower their consumption levels and the associated bills.

Now, reductions in bills can be achieved through a number of methods helping to give businesses the service they need at a price they can afford. By switching to British Gas (2) customers can save as much as 10% when they switch to their British Gas Business business energy services.

Alongside this, the introduction of dual fuel provisions (which see a single supplier provide both gas and electricity services) and smart meters has also helped businesses to keep their costs lower. These systems have become increasingly popular over recent years, with Energyhelpline.co.uk stating that domestic smart metering is expected to be worth £4.6billion by 2015 (3). These systems are also available for businesses and mean companies are able to review their energy usage and make appropriate changes and have been introduced as part of the government’s Carbon Reduction Commitment Scheme (4).

According to Business Electricity Prices.co.uk (5), this scheme intends to have the UK’s carbon emission levels reduced by 80%. In order to do this, both households and businesses need to ensure that they use as little energy as possible.

The introduction of smart meters, such as half-hourly meters, means that energy customers can constantly monitor their consumption levels. This means that peak times can be identified, allowing energy saving strategies to be targeted and implemented at these times.

Business Electricity Prices.co.uk (6) states that these meters are a mandatory fixture of all larger businesses who spend more than £30,000 on their bills. These businesses are using the largest amounts of energy and are therefore prime targets for changes.

Helping them to cut costs by offering an alternative form of energy generation, such as that provided by solar panels, and by advising them on how to use devices more efficiently can therefore help to reduce these costs. These moves not only save money, but can help reduce damage to the environment, too. It is for this reason that a number of products now come with energy efficiency ratings.

These ratings are provided in Energy Performance Certificates (ECP), which are outlined on the official UK government website (7). According to the information provided on this site, all commercial buildings must provide an EPC for the premises when selling or letting it to another party.

(1) www.acr-news.com/news/news.asp?id=2638&title=Masterclass%3A+VRF+Systems+Part+67
(2) www.britishgas.co.uk/business/products-and-services/business-electricity.html
(3) www.energyhelpline.com/moneyfacts_tips/fri/domesticenergy/news/article/800236880
(4) www.businesselectricityprices.org.uk/carbon-reduction-commitment-regulations/
(5) www.businesselectricityprices.org.uk/carbon-reduction-commitment-regulations/
(6) www.businesselectricityprices.org.uk/carbon-reduction-commitment-regulations/
(7) www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/Energyperformancecertificates/index.htm

About the Author

David Redmond


David Redmond is a Partner of Don Gilliard Finance Group. He is a fee-only, independent financial advisor and financial planner. For over 15 years, he has been helping individual investors and their families realize their investment goals.