Why does my business energy cost so much?

You may have received an energy bill recently and upon opening it asked yourself the question, why does my energy cost so much? You’re sure your last bill wasn’t as expensive as that and have no idea why it appears to be creeping up each time you get that dreaded payment notification!

Exchange Utility are here to help you identify what it is that’s driving up your business operating costs and assist you in getting back in control.

Why is my energy so expensive? Have you gone out of contract?

How long ago was it that you agreed to a business energy contract? If it’s more than a year, then you may have gone out of contract and rolled onto a standard or higher rate tariff. This means that the price that you pay for your energy is higher and has the potential to rise further.

To resolve this, you need to agree a new contract with your existing or new supplier. The best way to get the best price when doing this is to compare what several UK business energy suppliers have to offer.

With Exchange Utility, you can compare a wide range of suppliers, guided by industry experts who will give you all of the information that you need to make the right choice for your business.

Are you on the wrong tariff for your business needs?

Do you even know which tariff you’re on? Tariff information can be quite boring, therefore most of us don’t bother to read the benefits of the tariff that we’re on or explore options that may be more suited to our usage habits.

For example, if you’re a 24-hour business, it may be beneficial to choose a tariff with a smaller night rate or if you’re an SME it may be preferable to choose a fixed business energy tariff so that you can forecast your finances more accurately.

Is electricity cheaper at night?

Yes, electricity can be cheaper at night. It is usually cheaper when electricity demand is at its lowest, which in most cases is between 10 pm and 8 am. However, this is all dependent on specific suppliers off-peak time period and can be different depending on your supplier. The likelihood of finding a supplier that offers differing rates depending on the time is slim, but they do exist.

Are you being overcharged on business energy VAT?

Is your business paying too much VAT? Whether this is applicable depends on what type of business you are in – some are entitled to a special rate of 5% VAT and some are not.

Businesses entitled to pay only 5% VAT:

• Care homes
• Charities

This means that if you are a business in one of these sectors and are paying VAT at the standard rate then you may be entitled to a refund for the amount that you have overpaid over the last four years.

If you think you may be entitled to a refund, get in touch with a business energy expert today and we will arrange the whole thing for you as well as review your contract to ensure you’re on the best deal available.

Call 0161 696 0198 or email savings@exchangeutility.co.uk with your billing details.

Are you being wasteful with your energy?

“54% of energy used in supply of UK electricity wasted” – The Association for Decentralised Energy (2015)

That’s a lot of wasted power! Especially when it’s so easy to instil a few energy-saving measures throughout your business to counteract this. Here are just five ways that you can stop wasting business energy to get you started.

Five quick energy-saving measures:

• Install LED light bulbs. This could save you £3 per bulb per year on your energy.
• Get central heating instead of electric heaters. Electric heaters generate twice as much greenhouse gases and they are three times more expensive to run.
• Turn all sockets and lights off at the end of the day. The Rainforest Alliance estimates that by simply switching off plugs and powering down, businesses could cut their consumption by up to 45%.
• Reduce your air conditioning by 1C and you could reduce your energy spend by 8%.
• Install motion sensors for as little as £30 to save as much as 10% on the cost of lighting.

Just a few energy-saving measures combined can have a massive impact on the amount that your business has to spend on energy each year. Run your business premises the smart way and you could soon see a huge cost difference.

Some energy suppliers are even giving you the opportunity to make the most of new monitoring technologies so that you can gauge a better understanding of what you use and where then implement measures to reduce your consumption and therefore your costs.

Exchange Utility customers are now being granted access to an exclusive platform that will assist you in taking back control of your energy use. To find out more about this service call 0800 9777 000.

Is your business premises badly maintained?

Poor building maintenance can also be a factor in energy costs that raise prices. Below are just a few examples of how bad building maintenance can leave you thinking why does my energy cost so much?!
Insulation – If not maintained, or there at all, you could be losing 1/4 of the heat in your business meaning you are constantly paying to replace that heat.

Air leaks – Seal the air leaks around utility cut-throughs for pipes, gaps around chimneys and recessed lights in insulated ceilings, and unfinished spaces behind cupboards and closets to avoid drafts and heat loss.

Weather stripping on doors and windows – Worn-out or torn weather stripping can make you lose between 7 and 12% of the heat in your business.

Stop drips – According to the Energy Saving Trust, a dripping tap can waste more than 5,500 litres of water a year, so make sure your taps are properly turned off and change washers promptly when taps start to drip or you will be paying to use and dispose of water that you don’t actually use.

This may or may not be your responsibility depending on whether or not you own your business premises. If you own the building then you are responsible for its maintenance, however, if you rent, then speak to your landlord about implementing any changes.