Every business owner who is serious about their bottom line knows the first place to look for savings.
And that is in the cost of electricity.
Keeping the gaps in your electricity costs graphs close would be best. It is because a high proportion of it comes from running light bulb current. You also have 24-7 running appliances such as refrigeration, air-conditioning, and more.
If you’re starting, you may not know how to find competitive rates. This can be a real struggle for new businesses, startups, and established ones.
Thankfully, there are ways to get the best business electricity rates in the first place, which we’ll share with you in this article.
Track your usage closely or get an energy audit
One way to check if you’re not overpaying for electricity is to pay attention to how much power you use each month.
Note how much energy you consume during peak hours (when everyone else gets home from work), and compare this reading with your average daily usage throughout the rest of the year.
Some businesses have an electricity meter that measures consumption in half-hourly intervals, while others have a meter that records consumption every 15 minutes.
You’ll need to contact the supplier to determine your type.
Suppose your meter records consumption in half-hourly intervals. In that case, you must check the readings regularly because they vary significantly from month to month depending on how many people are working at any given time or whether there are significant electrical appliances like air conditioning units in use throughout the day or night.
This will help you to identify any weak areas of your business where you could save money, such as using appliances at peak times or leaving lights on when they aren’t needed.
If anything seems out of place, consider getting an audit done on your business to find out what’s causing the spike in consumption and take steps to adjust accordingly.
It would be best if you also considered getting an energy audit by an expert.
An energy audit will show you exactly how much power your building consumes, and it will also show you where the most extensive areas of wastage are.
This will help you identify areas where you can make savings without significantly affecting staff members’ productivity or comfort levels.
Use a business electricity comparison tool
Finding the best business electricity rates in the UK can be tricky. There are so many different tariffs and suppliers, but it doesn’t have to be overwhelming.
You may want to consider using a business electricity comparison tool.
What’s great about these tools is that they allow you to compare different energy providers and their rates side-by-side.
This will enable you to make an informed decision on which one is cheaper to save money on your energy bills.
The best part about these tools is that they are also free and easy to use.
First, you need to fill out some basic information about your business, including its location and size, and then you’ll be able to see all your options at once.
Consider paying by direct debit
It’s possible to pay less for your electricity if you pay by direct debit. This is because suppliers often offer discounts if they’re delivered in advance rather than at the end of each month when bills arrive.
These plans often come with a discount of around £30 per year, which can be a great way to save money on your energy bill.
Direct debits also make it easier for you to budget for your monthly spending as they’re taken automatically from your bank account and don’t require additional input.
This can help to reduce the impact on your cash flow and make it easier for you to budget for your business expenses.
If you’re unsure how much this will save you, check with your supplier before switching to a new plan.
Be aware of your contract end date
When you sign up with an energy supplier, they’ll typically offer a fixed tariff, where prices are locked in for several years. But after this point, they can increase their prices by up to 10%.
So, if you’re tied in with a long-term contract that doesn’t offer flexibility, it might not be worth changing suppliers.
But if your contract is coming up for renewal soon, it’s worth checking out other suppliers to see if they can offer better rates.
If you leave it too late and don’t switch, you could be left paying a higher rate than you need to pay.
Search for special offers and freebies
Many companies offer special deals and freebies as part of their business electricity packages.
Some companies will offer free upgrades, equipment, or cashback schemes if you sign up.
Others will give you rebates on your first bill once you’ve been with them for a certain period which can save you money on top of the standard tariff rate.
They usually provide these as incentives to keep their customers happy.
You can also check whether any discounts are available through partnership schemes, such as those offered by energy companies who have teamed up with charities or local councils.
These schemes usually offer lower prices than standard tariffs – but they may have restrictions on who qualifies and where they can be used (for example, in certain postcodes).
So check out what deals they have at any given time and see whether it’s worth changing suppliers or staying put with your current supplier.
Or you can look at these deals online or by contacting one of the electricity providers directly.
Make your premises more energy efficient
It might seem obvious, but it can make a massive difference to your electricity bills if you make your premises more energy efficient. Of course, this may mean investing in new equipment and changing how you use your office space, but the payback will be worth it.
It would be best to start by checking that all windows have double glazing and ensure to seal any gaps adequately.
Use LED or fluorescent lighting.
This will use much less power than traditional bulbs, meaning that you can save money on electricity bills while making your business more environmentally friendly.
Install motion sensors outside entrances and exits so they only light up when you need to use them. This will save money without affecting customer experience in any way at all!
Upgrade appliances such as fridges and air conditioning units to more efficient models that use less electricity than older models.
Your business’s electricity bill is your budget’s most expensive line item. You can reduce energy costs by switching to a cheaper supplier or finding a better deal for your current one.
Once you’ve decided on a provider, it’s easy for them to switch over your account, so there’s no hassle involved.
So, whether you’re looking for a new provider or want to get the best rate possible from your existing one, check the list above to know more about finding the best business electricity rates in the UK.