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Home Business

How to Lower Your Business Energy Bills

by Admin
December 2, 2022
in Business
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Business energy bills can be expensive, but there are ways to lower them. Tracking energy use and installing energy-efficient equipment can help you save money. It’s also a good idea to set up energy-saving policies to encourage employees to be more efficient. Changing suppliers isn’t the only way to lower costs, though.

Switching to a new business energy supplier

Switching to a new business energy supplier is an opportunity for you to secure lower rates. However, you must give notice of your intention to switch to your new supplier. Some contracts may require up to 30 days’ notice. In such cases, it is best to switch at an earlier date. For example, switching six months before your current contract ends will save you 20% compared to switching closer to its end. On the other hand, switching late can cost you the savings.

While cost is a crucial factor when choosing a business energy supplier, you should not compromise on customer service and wait times. These factors may result in wasted time and increased costs. You can compare different business energy suppliers by visiting a comparison site and looking at their prices. It is also a good idea to find a business energy broker, who can negotiate with suppliers on your behalf.

Grants

Businesses can take advantage of Business Energy UK grants to save money and energy. The fund is administered by the Department for Business Energy and Industrial Strategy. The funds can cover up to 80% of the costs of energy efficiency projects for SMEs. You can apply for up to PS4000 to get your energy saving project off the ground.

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One such grant is the Exploring Innovation Grant. This grant provides up to EUR35,000 to help businesses or organisations undertake energy investment projects that will help to reduce their carbon emissions. Moreover, it offers support to organisations by providing grant funding of up to 50% of eligible costs. Another grant is the Support Scheme for Renewable Heat. This grant helps businesses or organisations to reduce their carbon emissions by up to 30%. It provides multi-annual payments for up to 15 years.

Loans

If you are a small business looking for a way to reduce your energy bills, you may qualify for a Business Energy UK loan. The loan offers interest-free funding to companies that have an energy efficiency project. This scheme has already helped over 2,500 businesses. It was set up by the Carbon Trust, a government-funded company. Over the next two years, the Carbon Trust plans to provide PS100m in loans to small businesses.

As part of the government’s commitment to achieving net zero emissions by 2050, businesses can apply for funding to help them reduce their carbon emissions and energy costs. However, funding is limited and the list is constantly changing, so you should check the government’s green funding webpage for more information. Additionally, you can sign up for email alerts to stay updated on the latest opportunities.

Price cap

Business energy suppliers are expected to offer their customers a discount when purchasing energy through a Price cap scheme. This scheme will apply to gas and electricity prices. Under the new system, the wholesale cost of a kilowatt-hour is capped at 21.1 pence. The discount will apply to contracts signed since April this year, and will be valid for six months, from Oct. 1. In some cases, businesses can save up to 41% on their energy bills with the new price cap.

The introduction of a price cap scheme has allowed many firms to weather the winter months without experiencing huge price increases. The price cap scheme will also apply to fixed, variable and flexible tariffs, and the discounted wholesale prices will be automatically reflected on bills. However, it is important to note that despite the new price cap, some businesses could still lose money on their energy bills. For example, some businesses are coming to the end of fixed contracts that have experienced huge price rises since they signed the contract.

Switching to a fixed-rate tariff

Switching to a fixed-rate tariff is a great way to reduce your energy costs. You’ll have the same contract period as you do with a domestic tariff, so you can rest assured you’re protected. But there are some differences between domestic and business energy customers. While consumers enjoy the protections offered by consumer protection bodies, business owners have to deal with a fundamentally different customer experience.

First of all, businesses need to consider how much they pay for their energy. For domestic customers, the cost is typically around five per cent, but for businesses, that amount can be as high as 20 percent. Furthermore, businesses have to pay the Climate Change Levy, currently set at 0.188p per kWh of gas and electricity. This will increase the cost of business energy, though renewable energy is exempt.

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