Are your company’s utilities due for renewal? Could your business save up to 20% on energy in 2020?
Energy is one of the biggest overheads for businesses, so it’s important to get the cheapest rate possible for gas and electricity. Did you know a 20% cut in energy costs represents the same bottom line benefit as a 5% increase in sales in many businesses?
There are plenty of ways that your business can save energy and cut back on outgoing bills. Some examples below:
Intelligent use of a group procurement frameworks, such as ProSource, could save you up to 20% on your utilities. How does it work? It’s no secret that the more money you spend with a supplier, the better deal you will get. A group purchasing organisation aggregates the spend of multiple companies and once a member of one, you can leverage that buying power and get a better deal.
Group purchasing organisations, such as ProSource will take your energy spend, analyse it, identify savings with a trusted supplier and manage the whole transition; so, it is hassle free. As you will be a client, they will also monitor your energy agreement and ensure your prices continue to remain competitive.
Did you know; if you do not issue a notification of termination 30, 60 or 90 days before your energy contract ends or renegotiate a new agreement in time, your supplier will auto-renew and put you on a default tariff which can see your rates increase by up to 30%. Know your renewal dates and your notice of termination period; 6 months prior to the end of your contract start negotiating with your current supplier or start shopping.
Read your Meter
Read your electric meter and know your average consumption. If you do not have the time to check your electricity meter regularly and cross check with your bills, try to schedule in some quarterly spot-checks. Energy companies can make mistakes; and these can go unnoticed if you are not checking against your meter reader. Electricity bills are notorious for being confusing and daunting to read, therefore, most companies will trust that the details of consumption are correct and will pay accordingly. This can result in mistakes going unnoticed and usually at a cost to you.
As mentioned above, if you keep allowing your supplier to auto renew your energy agreement, it is rare that you will be receiving the best deal. Well known suppliers such as EDF, British Gas etc. are known as The Big Six and are the most well-known energy suppliers in the UK. Although giants in the industry, this doesn’t necessarily mean they are the best value. There is a growing numbers of smaller energy suppliers and to ensure you secure the best deal; it is imperative that you shop around. In some cases, solely telling your supplier that you are interested in browsing the market – can result in a discount.
Experience shows that even low and no-cost actions can usually reduce energy costs by at least 10% and produce quick returns.
Ensure the whole team are onboard and say no to standby by unplugging computers or any other electrical devices that are not needed outside of office hours. Utilise nature and switch off the lights in summer months where natural light is sufficient and manage office drafts to increase your heating efficiency in colder months.
Although this will entail a cost upfront; it will provide a hefty return in the long run. Switch to energy saving light bulbs that use up to 80% less energy than standard and start replacing out of date models of computers, fridges and even kettles as these can have a big impact on energy efficiency.
To summarise, it is possible to reduce what seems like an ever-increasing energy bill. Of course, it is always easier said than done. Our suggestion: Join a group purchasing framework such as ProSource to secure rapid savings and whilst they are handling the analysis, price comparisons and transition; use that time to upskill your team on how to decrease your energy consumption. With an estimated 20% reduction on your energy bill and with savings starting instantly, there is an opportunity to re-allocate a portion of the energy budget and start purchasing energy efficient products and devices.
If you would like to discuss how your company could save up to 20% on their energy, please get in touch for further details.
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