4 Tips to Avoid Paying Too Much for Your Business’ Electricity

Electricity costs can easily creep up without you noticing, especially if you don’t have a good understanding of how much you’re using or what you’re paying for. It’s not uncommon for businesses to end up on expensive tariffs or pay for electricity they don’t need, simply because they’ve never questioned their setup. Whether you run an office, a shop, or a workshop, there are some simple ways to keep those bills in check without making drastic changes to how you operate.

Check Your Current Tariff and Terms

The first step in cutting electricity costs is to take a good look at your current tariff. Many businesses stick with the same energy supplier year after year, assuming it’s the best deal, when in fact they might be paying far more than necessary. If your contract has recently expired, there’s a good chance you’ve been automatically moved to a standard or variable rate, which is often the most expensive option.

Review your energy bill carefully and check what tariff you’re on. If you’re not sure when your contract is due to end, it’s worth finding out so you can plan ahead. Being on a fixed-rate deal can give you more stability, but it’s important to compare prices regularly to ensure you’re still getting a good deal.

Switching Suppliers is Easier Than You Think

The idea of switching electricity suppliers can sound daunting to some business owners, but in reality, it’s a quick and easy process. Most businesses are on standard contracts that could be saving them more money elsewhere. There’s no interruption to service when you switch, and the process is often handled by the new supplier.

It’s worth comparing business electricity deals online or through a broker to find a supplier offering a better rate. Many suppliers provide online calculators, where you can estimate what your bill might be based on your usage. This can be a good way to see if switching could help you save money. Even if you’re not ready to switch, knowing what else is available can help you make a more informed decision when your contract comes up for renewal.

Pay Attention to Your Usage Patterns

Another simple way to keep your electricity costs in check is to understand when and how your business uses energy. Businesses don’t always use electricity evenly throughout the day. For example, if you’re running heavy machinery or keeping lights on in areas that aren’t in use, you might be wasting more electricity than you realise.

Some energy suppliers offer time-of-use tariffs, which can save you money if your business operates during off-peak hours. Even without a time-of-use tariff, it’s helpful to look at how your electricity is being consumed. If you’re able to stagger the use of equipment or switch off non-essential lights during the day, these small changes can add up.

Installing a smart meter can also help. These devices provide real-time data, so you can see exactly when you’re using the most energy and take steps to reduce it. If you’re using more electricity during certain times, it might be worth making adjustments to your daily schedule, where possible.

Maintain Your Equipment and Upgrade When Necessary

Sometimes, the equipment you’re using could be contributing to higher electricity costs. Old machines, lighting, or heating systems can become inefficient over time and may be using far more energy than they need to. Even though replacing equipment can seem like a big expense, newer, more energy-efficient models can often lead to savings in the long run.

A good practice is to regularly maintain your equipment to ensure it’s running at its best. Keeping things like heating and air-conditioning systems well-serviced, as well as checking appliances for signs of wear and tear, can prevent unnecessary energy waste. When it’s time to upgrade, consider opting for energy-efficient alternatives. These might cost a little more upfront but will save money over time through lower energy usage.

With just a little attention to detail and some basic checks, your business can reduce its electricity costs significantly. Whether it’s reviewing your contract, switching suppliers, or taking small steps to cut down on wasted energy, managing electricity doesn’t have to be complicated. It’s about being proactive and making sure you’re getting the most out of your energy spend.