Britain's Energy Crisis: What can businesses do to combat growing energy costs?
If struggling with negotiating the additional demands that Brexit, the pandemic and the rising cost of living wasn’t enough, businesses now face additional pressure from the UK’s ongoing energy crisis.
Although wholesale gas prices were already rising at an astonishing rate in 2021, the recent invasion of Ukraine by Russian forces made matters even worse. Annual energy prices for medium-sized companies could rise by around 54% this year, according to some estimates.
This could be enough to lead to business collapse, especially for the micro-businesses that don’t have enough resources to manoeuvre through these financial demands.
However, it’s not all bad news. By putting certain strategies into place, businesses can lower their energy costs whilst also pushing further toward their net carbon emission goals without making compromises that impact their business strategy.
Here at MyPower, we can help you combat growing energy costs by switching to commercial solar panels, we also have experts on hand to take you through the steps to reduce your energy consumption.
How are businesses likely to be affected?
Before we explain how you can reduce energy costs, we’d like to explain more about how businesses are likely to be affected by this sudden spike in prices. As explained above, the rise in wholesale prices will mean both commercial and residential properties will end up paying more for their energy.
Luckily, the UK government has announced several strategies that could help ease the burden for households across the country with more in the pipeline. As positive as this sounds, it is unlikely to help businesses.
Firstly, any price cap or rebate for residential properties won’t apply to businesses. Secondly, energy contracts tend to be longer- up to five years in duration. This could lock companies into paying elevated prices when switching to an alternative source of energy or supplier could make a difference.
The only solution is to reduce energy consumption as far as possible whilst considering making the switch to a renewable energy source such as solar.
How to combat rising energy prices
There are many effective ways you can reduce your energy bills whilst also helping to reduce your impact on the planet. Why not try one of the following?
Check that you’re being billed correctly
Your business energy bills should be based on accurate meter readings, not estimated readings. If not, you could end up paying more than you need to and struggling to balance your overheads.
Check your energy bills to understand how you are being billed, then take your own meter readings if necessary. This simple step can slash a significant amount from your energy bills.
If you receive an unexpected bill, check the date. If you are being billed for energy used over 12 months ago and it’s the energy suppliers’ mistake, you cannot be held liable.
Switch to solar power
Many businesses and commercial properties are making the move towards renewable energy sources such as solar because of the long-term benefits they offer.
With your own source of power, you won’t have to worry about energy prices fluctuating in the future and it will be much easier to reach those net-zero carbon emission goals.
By avoiding fossil fuels, you’ll also show your customers that you genuinely care about climate change and build your brand, grow your revenue and even boost sales.
Make your business more energy efficient
Reducing how much energy you waste can also help you get your bills under control whilst further easing your impact on the planet.
Don’t worry that you’ll need to invest in a complex or costly assessment to become more energy-efficient either. The majority of these steps are simple, free and can be fun too!
Consider:
- Switching to LED bulbs
- Turning off equipment when not in use
- Using your thermostat more effectively
- Monitoring your energy usage
- Buying new appliances with a better energy rating
Find out if you’re eligible for business energy grants
The UK government offers several grants that can help you cover your business energy bills and become more eco-friendly. Visit the government’s website to find out more.
If you’re not eligible or need further advice, try contacting your local council to access energy efficiency funding or sustainable business growth grants.
Final words
Britain’s Energy Crisis has placed substantial pressure on households and businesses across the UK. What better time to put more energy-saving practices into place, switch to solar power and apply for that grant? Not only could you offset current energy prices but also reduce your overheads, grow your brand and increase revenue long-term.
Find out more about installing solar panels for your business by contacting us today.