How often do you reassess your business electricity rates? If you’re not keeping an eye on the market and comparing business electricity rates, you could be missing out on significant savings. So, how do you know that you’re getting the best prices for your business electricity?
Here are some tips to get you started on better energy management and finding the best business electricity rates.
#1 Create an energy management strategy
The best way to know that you’re getting the best business electricity rates is to make sure that you have an effective energy management strategy in place. Your energy management strategy should involve:
- Appointing an energy manager.
- Understand how your business is using energy.
- Identifying long-, medium- and short-term energy goals.
- Developing an action plan to help you achieve your goals.
- Taking steps to involve your staff in your overall energy management.
- Controlling, monitoring and reporting on your energy performance against your goals.
#2 Take readings and check your energy bills monthly
If your energy bills are based on estimates taken by your supplier, they’re simply not accurate. The only way to ensure that you are being charged only for what you actually use on a monthly basis to take monthly meter readings and submit your consumption figures to your energy supplier. You can then check your monthly bill against the readings you supplied.
#3 Get a smart meter
Having a smart meter removes some of the admin associated with submitting manual gas and electricity readings. Your smart meter will take accurate readings, leading to accurate billing. You’ll no longer need to take manual readings once your meter’s SIM card is connected; your readings can be set up to be sent to your supplier automatically. This will save you time and ensure the accuracy of your bill.
#4 Diarise your contract end date
If you don’t renegotiate your energy contract before its end date, you’ll be rolled over by your supplier to their standard rates, which are usually more expensive than the rates you have been paying in-contract. Be sure to diarise your existing contract’s end-date and window period (the time in which you can switch suppliers). Be prepared to set some time aside to compare business energy rates and/or negotiate with your existing supplier during this time.
#5 Compare quotes
There are over 50 energy suppliers in the UK, so it’s worthwhile to shop around and compare business electricity rates. Every energy supplier offers different unit rates, standing charges and different options when it comes to passing on third-party costs. This means that comparing business electricity prices from different suppliers can become complicated. Nevertheless, it’s the only way to ensure that you are getting the best business electricity rates on the market.
#6 Make use of energy monitoring and management software
Managing and monitoring your energy usage and portfolio with a cloud-based energy management system allows you to quickly and accurately identify energy cost-saving opportunities, improving your profitability and competitiveness.
- Making it easy to monitor and manage your energy
- Complete control of your contracts
- True price transparency
- Identify savings online
- Online energy audits
#7 Validate your invoices
Instances of overcharging for energy are more frequent than you may think – suppliers get things wrong and sometimes base your charges on estimates rather than accurate consumption statistics. We’ve found that businesses often end up paying 3 to 5% more than they’re supposed to for utilities each year, amounting to potentially serious unnecessary losses. It’s advisable to conduct an invoice validation process to check historic invoices for errors and ensure ongoing billing accuracy.
#8 Outsource to the experts
If all of the above sounds like it takes a lot of time and resources to implement, it does. That’s why many companies choose to outsource their energy procurement and management to an expert energy consultant like Smarter Business, leaving them to focus on their core business operations.