Are you a manufacturing company with high energy usage? Is the energy crisis putting a financial burden on your business? Read the FAQs to learn what you can do to manage the energy situation.
How can my business cut the cost of rising energy prices?
Save on your corporate energy bills by getting a supplier that offers the best deal. Start by performing a business energy comparison. It can help you get access to competitive prices across the market.
How can a business energy comparison help me save money?
Compare business energy suppliers to save thousands of potential operational cash. If your contract with your supplier is up for renewal, conduct a business energy comparison.
An energy comparison service will guide you on the decision of whether to switch to a new energy provider or renew your existing supplier. It also helps you to avoid expensive rollover contracts.
Choose the best contract to avoid paying for an expensive energy rate your current provider may be charging you. Identify the energy supplier that can offer a green energy deal to reduce your bill.
If your business energy contract is not yet due for renewal, follow these steps to reduce your energy usage.
Conduct an energy audit.
An energy audit will provide an overview of what areas in your business consume the most energy. It lets you know where to make changes.
Implement energy-efficiency measures.
Replace light bulbs with LED lights. Turn off lights when not in use. Train your employees to switch off machines and appliances on standby. Provide a programmable thermostat and use energy-efficient equipment.
Invest in energy management software.
If your business is large, invest in an energy management tool. Use it to monitor areas with inefficient energy use and set alarms if they consume too much energy.
If your business energy contract is near its due, use the information from your business energy comparison to find the ideal supplier. Check the contracts available to see what is best for you.
What types of energy contracts are available for large businesses?
Since you are a large business, you can choose from various energy contracts. The most common types are:
Flexible rate contract
If your business welcomes a small amount of risk, this contract would be appropriate. The rate is dependent on market movements, so you can expect that energy prices will rise or fall.
Fixed-rate contract
This deal offers more security since you know how much you need to pay until the contract ends.
Interruptible contract
Only large companies use this contract. In this option, the National Grid cuts off your energy supply during peak periods. In exchange, you pay less per unit of energy.
Large site peak day demand contract
This contract limits the amount of energy your business can receive in a day. If you exceed the defined limit, you will pay heavy fines.
What types of meters do large businesses use?
Different types of meters are available for use in large businesses.
● Single-rate - It is the standard meter and is the most widely used. It charges a single, flat rate regardless of the time of day.
● Two-rate - This meter charges two different rates, depending on the time of use. During off-peak hours, you get cheaper rates. If you use energy during peak hours, you pay expensive rates. This is suitable if your business operates outside regular working hours.
● Three-rate - This meter has a day rate, a combined evening and weekend rate, and a night rate. It is the best meter to use if your business operates 24 hours.
● Half-hourly - This type of meter takes readings every half hour and sends them straight to your energy supplier. Large manufacturers, factories, warehouses, and huge offices that consume 100kW or more use this meter.
● Multi-site - If your business operates in multiple locations, this meter is the right one for you. It helps monitor your energy consumption on all your sites.
Can my business benefit from a smart meter?
A smart meter is an advanced way to measure corporate energy use. It submits your readings directly to your supplier. You can rely on it to monitor and provide insights into how your business consumes energy.
By using a smart meter, you improve your awareness of energy use. Use this opportunity to reduce unnecessary usage. You can also determine where your energy consumption is the highest. Use it to minimise running costs.
A smart meter makes it easy for you to switch business energy suppliers. If you need to change providers, use a business energy comparison tool to ensure an efficient transfer.
How much can my business save with energy management software?
Get up to 10% annual energy savings in your business energy costs by using reliable energy management software. Through energy management, your business can:
● Commit to an energy management program.
● Measure your energy performance.
● Gather real-time data for your energy consumption.
● Evaluate the information to emphasise areas needing improvement.
● Carry out measures based on the analysis results.
What types of energy tax exemptions are available for my business?
As a manufacturer, you can reduce your tax burden by taking advantage of two tax exemptions.
Climate Change Levy (CCL)
CCL is an environmental tax on the energy that your business uses. Its goal is to encourage large companies to become more energy-efficient.
This scheme allows your business to claim back the taxes you paid. It also gives you a discount moving forward.
Energy Intensive Industries (EII)
EII is a government scheme that aims to help large energy users stay competitive in the international market. You need to be eligible before you can get an EII exemption.
If your business qualifies, you can expect around 25% exemption of the overall electricity spending within your company.
Final Thoughts
Energy efficiency is important in managing your energy costs. Implement environment-friendly measures in your business and put energy management in place to get significant savings.
In this current environment where costs are rising, reducing your energy usage is vital to help ensure your business stays afloat.
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