Six ways to cut your business energy bill

10 Oct 2018 @ 2.21 pm
| Business

Every company, York-based or not, wants to turn a profit.

UK businesses spend a yearly average of around £4,000 on gas and electricity; but there are ways this cost can be lowered.

UK energy costs

UK companies have borne the brunt of a 100%+ increase in energy costs in the last seven years. For most SMEs, gas and electricity charges are now a considerable chunk of their monthly outgoings. Many UK businesses are using between 15,000 and 25,000 kWh of power per year, with annual consumption figures for large business reaching in excess of 250,000 kWh.

What about business gas and electricity prices? Latest data shows UK businesses are spending an average of £3,061 on their annual electricity bills, and an additional £856 a year on gas. SMEs fare slightly better – but with the average electricity bill for an SME reaching £2,958 (and that’s before putting business mains gas into the equation), it’s still a considerable outlay.

Ways to reduce energy bills

Here, Flogas Energy shares some tips on how companies can slash their energy costs:

1. What are you using?
The average unit prices in the UK are currently 14.36p per kWh for electricity and 4.25p per kWh for gas, with standing charges on top of this. Finding out your business’s annual usage figures – and knowing when your contract is due to come to an end – means you’re equipped to accurately compare your current supplier’s prices with others.

2. Compare your bill
Neglecting your tariff to let it just roll over without checking can see the prices rise by as much as 100%. Ahead of your contract ending, find out how much switching could save you and don’t limit yourself to the Big Six. Switching to a smaller business energy supplier could mean lower bills.

3. Have a look at your contract
Whether you’re switching or staying, make sure your contract fits your company. An extended fixed-term contract could help protect you against future price rises, giving peace of mind and making budgeting easier. Or there might be an additional discount on offer if you opt for a Direct Debit payment plan.

4. Staying ahead with a smart meter
It’s worth getting a smart meter so you’ll know exactly how much your business energy supply is costing daily – and because you only pay for what you use, there’s no need for estimated billing or meter readings. As well as saving on monthly charges, it can also help you make better decisions on where you might be able to curb your consumption. Energy management software can also help provide useful insight for larger businesses.

5. Review behaviours
More energy efficient behaviour could be simply making sure computers are switched off outside of office hours.

6. Investments to save in the long-term
Invest in energy efficient appliances. Whilst this approach might come with a heftier initial price tag, it should pay for itself and more in the long run.

*Statistics from