Commercial electricity customers are being constantly bombarded with price rises but what’s the best way to manage increased costs?
Fortunately for business owners and employees, there is now a glut of information available to them in the fight to maintain profitability. Stopping short of reminding a business to pay their bills on time to avoid penalties, it can be remarkably easy to cut spending on electricity.
Choosing the right tariff, evaluating current energy expenditure and usage as well as making small changes to working behaviour can pay large dividends.
It might not be quite as simple as turning a light switch off in an empty room in order to save money, however, educating a workforce and engaging with the problem can produce remarkable results.
Be Energy Aware to Improve Business Efficiency
Carefully monitoring business electricity spending is the first step to loosening the financial stranglehold energy bills can have over your company.
Furthermore, an awareness of the way in which a business uses power can prove extremely beneficial when deciding upon an appropriate tariff and negotiating rates.
It’s important to make the distinction between tariffs and rates: a tariff is the type of price plan you sign up for and how you much you pay per kilowatt (kWh) whereas rates are determined by other factors including the amount energy a business uses at certain times of the day or its location if it’s more difficult to source a supply because the premises is remote or not near to a busy commercial centre.
It’s worth considering what the best options available to your business are. For example, is your company using the majority of its electricity at certain off-peak hours of the day? Conversely, if your business is planning a large operation that is likely to increase usage, are there any beneficial tariffs or discounts to counteract any increased costs?
This type of active decision making could end up saving companies a substantial amount of money on electricity. It is estimated that more than 80% of businesses can save by switching supplier and re-evaluating their current energy deal. Efficiently sourcing the best deal may take time but it will inevitably reap rewards.
Stay in the Loop
Don’t forget to keep up-to-date with market prices and be aware of upcoming electricity contract renewals. Each supplier will have their own varying terms and conditions and it’s vital to ensure you are aware of them should you wish to end your relationship with a current provider and take advantage of a better deal elsewhere. Otherwise, costs could mount up if deadlines are missed, prices climb and there’s no-where to go without having to dig deep in order to terminate a contract and subsequently receive an unwelcome penalty.