How to Deal with Rising Business Energy Bills

With the current cost of living crisis, it’s not only individuals who are struggling – it’s businesses too. Smaller/medium-sized enterprises may be finding it difficult to operate as usual, and with prices showing no signs of returning to normal, here are some tips as to how you could reduce expenses in your business.

Review your energy provider

Did you know that if you are out of contract you can easily switch to a different energy provider in a matter of weeks? One of the simplest methods to reduce energy bills is to switch to a less expensive provider.

Today’s suppliers provide a range of tariffs; some even provide various charges for use at different hours of the day. Therefore, it is worthwhile to conduct some research on several providers and select the best one for your company.

Remember that while getting the best bargain is important, many suppliers also offer extra benefits and services, such as free energy-management software, so it’s worthwhile to compare all the options before choosing one.

Reducing business costs

Your business’s fixed expenses include things like rent, energy and water bills, insurance, and anything else that remains unchanged with an increase or decrease in sales or demand.

Trying to reduce these, for example by looking for insurance plans with more sustainable costs, can help decrease the money you spend on other costs, so there is more to spend on the ever-rising energy bills.

Variable costs refer to raw materials, packaging, and other costs that increase or decrease according to demand or sales. Trying to find cheaper alternatives for these, such as cheaper raw materials, can also help to leave more of your budget for paying energy and water bills.

Promote energy-conscious behaviour:

A problem that can often cause sky-rocket energy bills is unawareness. You can encourage employees to adopt energy-saving habits, such as turning off lights and equipment when not in use.

Educating them, and yourself, about the impact of energy consumption on the company’s bottom line and incentivizing energy-conscious behaviour can massively decrease your overall energy usage, and therefore your energy bill.

Utilise renewable energy sources:

Exploring the integration of renewable energy sources such as solar panels or wind turbines into your business operations is a great idea when looking to cut down on energy consumption. While the initial investment may be higher, renewable energy can lead to substantial long-term cost savings and a positive environmental impact.

In summary, reducing other expenses can help put aside more money to pay rising energy bills, and switching energy providers or reducing the amount of energy your business uses can decrease the size of said bills.

Exploring the different ways in which to keep your business’s energy finances under control will help you find the best action to take to support your business during the current cost of living crisis.

We are here to help

If your company is struggling with unmanageable HMRC debts, poor cash flow, or an uncertain future, you are not alone. We speak to company directors struggling with the same issues as you every single day, and we are here to give you the help and guidance you need.

Call our team for free, no-obligation advice today on 0800 975 0380 or book a free consultation