This follows on from the previous post, where I gave you some tips on reducing the amount of energy you use. But how can you pay less for business energy you still have to use in your business? Read my tips below, every business owner can implement these.
1. Are you on the correct type of electricity meter for your business?
Single rate meters, two-rate and even three-rate meters are out there. Meters with multiple rates mean your energy company will charge less for business energy you use at night, or during the week if most of your use is at weekends (a nightclub for example).
If you took over your premises on a change of use, ie. from a cafe to a shop and vice versa, then you will pay less for business energy by changing the meter to a different rate.
For example, a cafe would benefit from a day and night rate if they have a lot of refrigeration units running 24 hours a day. The price they will pay for business electricity, per kWh from midnight to 6am, will be less than during the day.
If these premises become a shop, then they will benefit from changing the meter to single rate, as this rate will be lower than the day rate on a two-rate meter.
2. Give your energy company regular meter readings
No need to do this if you have a smart meter at your premises, as it will do so for you. But if not, it is good practice to get into the habit of submitting readings on the 1st of every month. At the end of the day, this won’t actually reduce the amount you pay over a year, but it will keep on top of your cashflow.
By submitting regular energy readings for your business, you will be billed only for the business energy you have used in the last month. If you don’t submit readings, you are asking your supplier to estimate how much you have used.
An overestimation will result in higher bills, a lower estimate will mean a very large ‘catch up’ bill at the end of the contract. This catches out many small business owners.
3. Renegotiate your energy contracts to pay less for business energy
You can call round companies near the end of your contract to see who has the best price, don’t take the easy route and simply accept the price you are given buy your current business energy supplier.
Most business energy suppliers are not involved in the residential market, so the majority of business owners only call energy companies they know about, like British Gas and EDF for example. Good energy brokers, like ourselves, work with the whole business energy market of over 30 energy companies. Most online comparison sites only work with a handful and are quite misleading.
A broker also has the advantage of the enormous buying power of all their customers combined. This means customers can pay less for business energy.
Perfect Clarity can help businesses save money on their energy and water contracts. Call 020 3372 6517 for more information.