One of the UK’s leading providers of energy data is predicting that for the next five years, standing charges for gas and electricity will remain up to four times higher than during the first half of the decade. The government has stated that it intends to work with Ofgem to reduce the level of standing charges, but in the meantime, the continuing rise means that smart energy strategies have to work harder in order to help businesses lower their utility costs. Whether a company is letting properties as a business or just managing their own premises, utilities are a variable operational expense that can have a significant impact on budgets and profit margins. As energy costs and water rates continue to rise, examining utility bills and installing meters can help to identify patterns of excessive consumption, while the introduction of energy and water-saving measures can reduce waste and lower bills.
Maintaining the Efficiency of Gas Appliances
Businesses can protect their profitability against energy price hikes by improving their energy efficiency. An initial assessment of usage can identify areas where energy is wasted, and the installation of a smart meter can help firms to control their expenditure as it produces more accurate and consistent monthly bills. As a smart meter monitors the consumption of gas in real-time, it could also reveal a potential issue with faulty or inefficient appliances. To keep a boiler working safely and efficiently, a regular service will help to avoid costly breakdowns, extend its lifespan, and save a business money in the long run.
Ensuring Accurate Electricity Bills
With a replacement for the previous government’s Energy Bills Discount Scheme looking unlikely, businesses at the end of their contract with an energy supplier are being encouraged to secure a new fixed-rate deal that could protect them from further price rises this year. Some tariffs are aimed at startups and microbusinesses, with options for shorter fixed terms, zero exit fees, and even discounted bills. As well as conventional smart meters, companies can also take advantage of meters designed especially for business use. These include multi-site meters that allow businesses to manage their energy use across several premises with just one bill, and half-hourly meters that provide accurate information on electricity usage every 30 minutes. This gives businesses greater insight into their energy consumption and promotes the implementation of energy-saving measures such as turning off appliances and lighting when not in use.
Introducing Measures to Minimise Water Usage
Water bills are also causing a headache for many industries as the next five years will likely see an increase of around 27% before inflation in charges for businesses. While larger companies with higher rates of water consumption may be able to negotiate a cheaper deal with their water supplier, all types of businesses can benefit from the introduction of measures to save water and reduce their bills. Installing a water meter can be cheaper for some smaller businesses as they will only have to pay for the water they use. A meter will also make it easier to spot unusual levels of consumption that could indicate leaks or other abnormalities. Water-saving taps that regulate flow are another effective way to minimise usage and save money on bills.
The rising cost of utilities is impacting the expenditure and profitability of many businesses. While they wait for further support from the government, companies that closely monitor their energy and water usage, regularly service plumbing and heating systems, and invest in energy-saving measures can lower their bills and protect their profits.
