U.K. households and businesses have recently seen their energy prices rise significantly in recent months. Many people and business owners have been left wondering why prices are rising and what they can do to lower their energy costs.
A report from the Office for National Statistics found that energy price inflation was the main financial concern for over 26% of British businesses and another broader survey of larger corporations found that 68% were not prepared to face price increases. As an SME, you can do things to lower your energy costs. Here are why energy prices are rising and what you can do for your business.
Why is energy becoming more expensive?
Simply put, prices are rising due to global supply and demand changes. In April 2022, Ofgem increased the maximum amount that energy suppliers can charge customers, with many households and businesses seeing their energy prices double. Ofgem reviews global wholesale prices every few months, so it’s likely in October 2022, prices will increase again.
Other macro factors that have affected gas prices are the easing of Covid restrictions and the ongoing war in Ukraine.
As Covid restrictions are lessened, many businesses are reopening, and many are sold as workers continue to work from home. Prices are increasing to cover debt over the numerous lockdowns, as government deals were negotiated to help struggling households and businesses.
Russia is one of the leading gas suppliers to the west. Though the United Kingdom imports less than 5% of its gas from Russia, as many countries seek other gas alternatives, the global market prices have increased.
What can your business do to lessen your energy costs?
If your company is struggling with your business energy procurement prices, learning how to be energy efficient is the best solution. Making your business energy efficient can protect you from price increases and lower costs. Unlike other options, energy efficiency is a lasting and simple solution.
Turn off devices and supplies that aren’t being used
Most devices will use power even when left on standby, and for most devices, there’s no reason why they should be. You can decrease an office device’s energy consumption by up to 30% by switching it to standby, and unplugging it together can significantly increase this number.
Consider investing in energy-efficient appliances
We’re not saying you should throw away all of your current appliances to make room for energy efficiency, as this is wasteful and will likely be expensive. But the next time you need to purchase a new appliance, consider investing in an energy-efficient one. Appliances will have an A+++ to G rating on their efficiency, with more efficient appliances being cheaper to run.
Inform staff of energy-saving policies
Unless you’re a business of one, you’ll need to inform your staff about your energy-saving efforts. Consistently communicating with them and reinforcing why you need to save energy is a good start, but implementing energy-saving policies is even better. Simple things such as turning off lights in unused rooms and lowering the heating can take chunks out of your energy bill.
Consider a remote working option
Many businesses are refraining from sending office-based employees back on site, as many employees prefer to work from home following Covid. This can benefit your business, as having smaller office spaces will save you money. You’ll make noticeable savings by reducing the number of hours spent in the office. Many employees prefer to work from home, so you’ll receive happy and productive employees alongside cutting costs!
