With businesses opening their doors to increasing trade and positive consumer spending trends – now is a good time to perform an audit on your business expenses; determine what has changed since national lockdowns began, and look for opportunities to save on overheads. Here’s how energy tariffs for big business have changed, and what you can expect in 2021.
Energy prices are up
Since the announcement of an increase to the Ofgem energy price cap in February this year, suppliers have begun to raise prices for customers on default tariffs.
As of April this year, each of the big six energy suppliers have announced increases to prices, with an average price increase of £96 for customers on standard variable and default tariffs.
What does this mean for my business?
This means that you could already be paying more than you expected for your energy.
Businesses on standard variable and default tariffs can expect to pay more for their energy, but if you’re on a fixed tariff – your energy rates will remain unchanged for the duration of your contract.
This is where fixed energy deals can save businesses money, as you have a clear idea of your energy costs for the duration of each contract – usually between 12 and 18 months.
It is important for businesses to understand the impact that energy pricing instability can cause on business forecasting, especially for those consuming large quantities of gas and electricity.
How can I reduce my energy spending?
While it is not possible to control the external factors that impact the price of energy; such as price caps, supply and demand issues and global conflict impacting the cost of gas – business owners can take several steps when it comes to managing their energy bill.
The first and most important step to lowering your energy bill is to audit your energy usage. Installing smart meters across your sites will improve visibility and give you a better understanding of where and when your business is using energy the most – so you can make smarter energy decisions.
These decisions include smart lighting solutions, improved HVAC control systems, and replacing high power draw equipment for more efficient counterparts, as well as implementing green energy solutions to diversify and complement your energy portfolio.
Get better pricing on energy tariffs for big business
In a competitive energy industry, it can seem daunting to shop around for energy suppliers – but finding an energy partner to act in your best interests will help you secure better rates.
At Smarter Business, our team of experts will source quotes from over 40 trusted energy suppliers; and take on the task of negotiating for the best energy rates available for your business.
We’ll give you advice on how to structure your energy plan, assist in auditing your current energy usage, and provide you with insight on how to attain carbon neutral status.
We act with your best interests in mind. You are assigned one point of contact, who is dedicated to understanding your specific business needs and will consolidate your multi-site operations so that you only need to pay one bill.
With access to smart energy solutions, all the information you need to make smarter business decisions is at your fingertips.
As we look ahead to a brighter future, the time to act is now.
If you would like to find out more, get in touch with us today.