What Your Business Can Do About The Energy Crisis
We’re all worried about the soaring price of energy. Whilst you can’t control energy prices, you can control how you use energy. Much has been done to help protect households from increasing energy prices, but businesses need to absorb the full impact of rising costs too. This makes small businesses particularly vulnerable to price spikes. In this week’s article, GridDuck looks at some possible energy-saving solutions.
Griduck’s clients have told us that the energy crisis is starting to eat into profitability. Several have said that their tariffs will go from 20p per kWh to 28p. That’s not the full picture, however, as tariffs were closer to 14p only 1 or 2 years ago.
Many businesses are putting their prices up to counterbalance the rising cost of production. Yet not everyone is able to do that without losing customers. Research from the Federation of Small Business reported that 61% of its members believe energy to be a significant cost, while many cite it as their top concern. Moreover, 86% of members said that the UK is too reliant on imported energy.
The current energy crisis has several complicated factors, including winter pressures, lack of storage, the pandemic, unforeseen accidents and weather events, as well as reliance on imports. The current pressure is set to continue, with gas prices at record levels and increasingly volatile because of the events in Ukraine. Some estimates suggest it will be at least 2023 before the pressure starts to ease as a result of increased supply.
I’m a business. What can I do?
None of us can do anything about the rising price of energy but we can make cutbacks. The first step is to know exactly how much you are consuming and where you can make cuts. For this, you need to conduct a proper analysis. If you’re a larger business, you could hire an energy consultant or manager to help you track consumption and devise a strategy. We’ve previously discussed how energy managers can help businesses reduce their overheads.
Alternatively, you could save money and use a cloud-based energy management system. These use a dashboard to monitor, manage and analyse your energy use across different locations, appliances and systems, all from one place. GridDuck’s dashboard provides clients with at-a-glance information that helps them change behaviour, replace equipment, or set automation rules.
GridDuck’s Dashboard
What kind of savings could I achieve?
Savings are variable and will depend on how energy efficient you already are. For example, we helped a cocktail bar chain achieve energy savings of 35% by automating some of their commercial fridges. In another example, we were able to bring down one farm’s electricity costs by a massive 56%.
Manufacturing is particularly energy-intensive, accounting for about 20% of the total energy consumed in the UK. Moreover, the UK government has said that being more energy efficient can help manufacturers save up to 20% of their energy use.
Our client Bowles and Walker produce plastic components used in engineering, retail and medical industries. The company uses large-scale industrial machines to make its products, consuming a great deal of energy in the process.
They used GridDuck to monitor the energy consumption of different appliances and make comparisons. The company was able to identify which pieces of machinery were not performing efficiently, allowing them to remove or replace them. They are now saving over £900 per year and have avoided £20,000 in unnecessary costs.
Most of our clients see a return on their investment in months rather than years.
Are there any quick fixes I can try?
Yes! It sounds obvious but you can switch off all the lights or have them come on and off automatically. The same goes for computers and office equipment. Make sure everything is completely switched off before leaving for the day. Involve your colleagues and keep them updated on how their efforts are making a difference.
Do you have machines that are idling unnecessarily? This is potentially a huge expense. An idling industrial air compressor, for example, could still be using up to 40% of its full power. This will be costing you money. Check all your machines’ vents, motors, filters or fans. Clean any that are clogged or dirty.
Upgrade your insulation. While this will have an upfront cost, it will save you money in the long run. The Energy Saving Trust estimates that about one-third of heat will escape from the walls of an uninsulated home or building. Uninsulated lofts can be particularly problematic. The government estimates that simply installing 100 to 150mm of glass fibre insulation in lofts can reduce heat loss by up to 90%.
Use a digital smart meter to send automatic readings to your energy supplier, saving you time and hassle. With smart meters, you can say goodbye to estimated bills and only pay for the energy you are using. As a small business you might qualify for a smart meter. It’s worth asking your energy supplier for more information.
If you are looking for more advice, The Department of Energy & Climate Change has produced a guide for small to medium-sized businesses looking to become more energy efficient.
Where can I access more support?
You are not alone in being worried about rising energy prices. If your business is affected, remember that you can access support. Ofgem has a resource for small businesses struggling with energy bills.
Contact your supplier if you have concerns. They might be able to spread out the cost by putting you on a payment plan. Another resource to try is the Citizens Advice Bureau. They have trained advisors who can specifically talk about energy problems.
Find out more about us
We’re a friendly bunch. If you’d like to hear more about how our team can help your business reduce energy costs and save carbon emissions at the same time, get in touch. We’d be happy to answer any of your questions.