Over the last year or so, it’s felt like one crisis rolls into the next. After concerns around Brexit and a global slowdown due to the COVID pandemic, UK businesses are now faced with a sharp rise in energy prices.
However, there are still opportunities for businesses to ensure they don’t pay too much on their energy bill. Taking some important steps now can lead to considerable savings in the long run.
Why are Energy Costs Increasing for Businesses?
Energy costs are increasing for everyone due to a range of factors, but most notably recent events involving Russia, the world’s largest exporter of natural gas.
There are growing concerns that the usually consistent supply of natural gas from Russia could come to a halt due to the war in Ukraine. While the UK gets comparatively little of its energy from Russian gas, as part of the global market, the UK is affected by the world’s response.
There have been worries about a rise in energy prices for many months. Many small energy suppliers have collapsed due to the rising costs and an inability to pass the expenses on to customers, due to price caps or agreed contracts.
However, price caps have recently been increased, and many business energy contracts are due to end in April. As a result, the impact of rising energy prices is expected to be acutely felt this month.
So, what steps can you as a business take to help reduce the impact of rising energy prices is expected to be acutely felt this month.
Speak to Your Supplier
The first thing that any business concerned about the rise in energy prices should do is speak to their current energy supplier.
Energy suppliers are acutely aware of the potential impact of rising energy prices on businesses. By engaging in dialogue, you may be able to agree on long-term payment plans that support both parties over this challenging period.
Negotiate a Better Deal
It may sound unlikely in the current climate, but businesses are still encouraged to shop around for different energy deals.
It won’t surprise you to hear that the number of options you have and the chances of finding a better energy deal are low at the moment. However, with the right approach, it’s still possible to shave a bit off what you might end up paying if you don’t negotiate.
Regular Meter Readings
If possible, businesses should ensure they are being billed for the correct energy usage by taking regular meter readings.
Explore Sustainable Energy Opportunities
Finally, businesses should take the time to explore any potential grants or schemes associated with sustainability and energy efficiency, as these could further reduce energy bills in the medium and long term.
Certain energy suppliers are offering grants and schemes around green energy, so have this discussion with your supplier. Beyond that, investing in things such as insulation, eco-friendly lighting, and general good sustainability practices will all help to cut down that rising energy bill.
Here at Expense Reduction Analysts, our Energy & Utilities cost optimisation team has been working with major UK businesses during the recent rise in prices. Our cost reduction experts can understand the unique needs of your business and work with suppliers to ensure you get the energy you need at an appropriate cost.
To learn more about how we could reduce your energy bill, why not contact us today or read our case studies?