Energy costs are a huge concern for many businesses. With further price rises looming, it is a great time for businesses to reassess expenditure, including energy costs, and put mitigations in place to help.
Top tips for reducing your business energy costs
Talk to your energy supplier
Your energy supplier should offer you a complimentary review of your account and your usage and offer ways to reduce usage and options for payment. If you’re struggling to pay, consider extending the payment deadline or setting up a payment plan. Some may offer access to a hardship fund.
This advice is also for consumers and business owners who work from home. If you need an energy supply to generate income in your business – and pay your bills – then it’s in your supplier’s best interest to keep you connected.
Change Suppliers
Shop around! You could save your business up to 40% on energy costs each year by changing your energy supplier. Either use an expert energy consultant, use a business comparison website or do it yourself but it’s worth checking if there is a better option for you.
Energy Bill Relief Scheme
You might be able to claim a discount on gas and electricity for your small business through the government’s Energy Bill Relief Scheme. Support is available to businesses and charities who are on one of the following:
● An existing fixed-price contract agreed on or after 1 December 2021, or are signing a new fixed-price contract
● ‘Deemed’ rates (where no contract or agreement is in place, such as when a new tenant moves in and takes over an existing supply) or ‘out-of-contract’ rates (when the agreement has ended, and there isn’t another to replace it)
● A flexible purchase or a similar contract
The scheme launched in October 2022 and is available up until 31st March 2023 so apply soon!
Review your financials
Regularly reviewing your financial reports and expenditure can help you identify patterns in how you work and from that, areas where you could be more efficient. It may be that you can change your processes to reduce expenditure, including energy costs.
Contact your council and local business hub
Small business funding is available on a local basis for small businesses needing additional income to cover costs. This may be in the form of a grant or hardship fund. It’s always worth asking the question. Hubs are also a great source of advice – you may find an expert who can help you approach the problem in a very creative way.
The HB team is always on hand to help too. Whilst we’re not energy experts, we are members of various professional bodies and local council schemes and often pick up useful information from these sources.
Whatever you choose to do, don’t ignore the issue. Be proactive and you may be surprised about the solutions on offer to help your business.
If you would like to talk, call us on 01992 444466. We’re experts ready to support you and your business, no matter your company size or sector.
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The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any errors or omission or for any person acting on or refraining from acting on the information provided in the above
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