Top tips to save on your business energy costs

Our ecosystem partner, Experienced Energy Solutions (EES), supports business energy users in navigating this challenging environment. With over 30 years’ experience in the energy industry, their trading team monitor the energy market closely and can offer relevant and up to date advice on your business energy spend.

From quick wins to long-term savings, EES share 5 top tips to consider as we head into the colder months.

1.Energy contracts – fixed or flexible?
Fixed energy purchasing can offer a simple and efficient procurement strategy, where comparative rates across the same duration are compared to identify the cheapest annual spend. This can offer assurances around budgetary certainty and can also allow you to feel confident your needs are secured in one transaction. Fixing your unit rate is great, but when that unit rate is made up of 10+ individual charges, each of which can be fixed or ‘passed through’ at a variable market rate, the ‘minefield’ really starts to take shape

Flexible energy contracts are usually considered a more advanced approach to purchasing energy. These contracts allow you to engage with multiple, smaller purchases directly from the wholesale market and could see you benefit from wider opportunities to monitor the market and purchase energy at optimum times throughout the year. This strategic approach is suited to customers who have a larger energy spend (often beginning at around £500k per annum), or for a consortium of businesses who collectively basket their consumption together to try and accumulate their volume and enhance overall purchasing power.

2. “You can’t improve what you don’t measure.” – Peter Drucker
If you do not monitor, you cannot manage. The first step of any energy management plan is data and reporting.

Using a system to understand where your energy costs lie can make a big difference in how your business manages energy consumption. It’s particularly helpful to businesses operating across multi-sites, all of which will have their own meters. And with the ever-present challenge of climate-change, having the data available can help you take steps to reduce your carbon footprint.

3. Consider a Flexible Buying Group
Traditionally, this kind of product is only accessible by large volume energy consumers. In response to this limitation, EES have grouped together customers who use smaller volumes of energy to create a buying group.

The EES energy buying group is managed by in-house experts, who have extensive experience in managing some of the UK’s largest flexible purchasing strategies. Their team develop buying strategies and make purchases on behalf of customers within the buying group. This allows all businesses, regardless of size and expertise, to access the benefits of flexible procurement.
 
EES tirelessly review the drivers that influence price changes to stay ahead of the curve. This means that they can offer customers early advice on when and how they may need to react to their strategy. EES works with participants to create and administer exposure budgets and ensure their risk management support delivers within the agreed parameters.

4. Investing in your future
Have you thought about solar power for your business? It may be something you’ve previously dismissed, but it’s worth investigating – and EES can help you understand whether it’s right for your business. Here are 3 reasons why:

• Moving to solar can protect your business from soaring energy costs in a volatile market. Through self-generation, your energy supply won’t be impacted by factors influencing the energy market.
• Investing in solar panels for your energy supply will reduce your carbon emissions, supporting your environmental and sustainability targets.
• The Smart Export Guarantee could allow you to gain additional income from surplus energy, creating additional revenue and increasing your return on investment.

5. Quick wins – to help drive down your bill at home:

• Take shorter showers rather than long soaks in the bath
• Do bulk laundry loads – don’t leave the machine half empty
• Turn down your thermostat by 1 degree – and put on your favourite cosy jumper/ blanket
• Add window film to your windows to reduce heat loss
• Invest in LED lighting and make sure you turn of lights in rooms you’re not using
• Let as much day light in during the day and close curtains/blinds at night to insulate
• Once you’ve used the oven to cook, leave the door ajar to let the excess heat out into the kitchen.

Think strategically about your energy.
Almost every decision within your business is made with your strategy front of mind. Why should your approach to your energy be any different?

With support from the expert energy procurement team at EES we can help you align your business strategy with your energy also… whether that be cost reductions, sustainability, carbon neutral etc.