Could your business energy costs be too high? Chances are, your business is. Here’s Concise Energy’s quick guide explaining how to find out and save money on your business energy costs.
What is capacity charge?
Impacting on your business energy costs, put simply, there is a capacity, or a maximum level, set for your business energy use every month or year. This guarantees your business can always have access to this level. Depending on this, there’s also a minimum level of energy, known as a ‘baseload’. This is the level your business will never go below.
Just like your mobile phone, you should never pay for a 5GB data plan when you use 2GB a month. It’s similar to a business’ energy use and this is where our services can help.
When businesses are paying a regular charge for a set capacity, many end up spending too much when the levels aren’t set accurately or reassessed. In this case, your business’ energy use may need checking and can be adjusted to make sure it’s in-line with what your business actually uses.
When could this happen?
Your business could be paying for more energy capacity than it needs when:
- You have relocated and your business no longer uses as much energy as before
- Your business has downsized and is using less energy
- There is energy-saving technology in your business that’s reducing your usage, but your supplier isn’t up to date with its use
- Any new measures your business has taken on to cut down on energy. This could be simple actions, such as investing in more efficient IT servers or asking staff to take their PCs off standby.
Whether one of these reasons or not, it’s always worth finding out about the energy being used in your business through a site survey or through energy capacity checks. This can help realign your energy use to the correct level and help your business save money.
Steps to take
- It’s worth monitoring your business’ energy use over a period, such as over the winter. Look at the usage levels each month and compare it with your available energy capacity. Does your business ever use the maximum capacity? If not, then it’s likely you are paying too much.
- Speak with your energy provider to check how much you’re currently paying. There may be a new technology tool you can use in your business to help with cutting down on energy use.
- Speak with an energy consultant that can provide an energy survey or analysis at your business site. This can be eye-opening when looking at exactly what your business is using and identify any areas of over-spending.
- Find out about half-hourly meters. Many businesses have half-hourly meters to get accurate readings and pay the right amounts. This works when a business’ energy usage is tracked to a central data centre every 30 minutes. Many suppliers use these recordings to create bills for businesses. However, not all suppliers can access this data yet.
Save on your business energy costs
Are you using the right supplier for you and is it meeting all your business needs? Getting the right energy contract is essential to make sure you’re paying for the required level of energy. Help with procurement across different energy suppliers and assistance with downgrading are useful to make sure you don’t overspend.
Could it be time for you to look at saving your business money? Concise Energy runs site surveys, contract procurement, and a range of other services to help businesses be more cost-effective. They can also arrange a contract that’s tailored specifically to you.
Concise Energy’s tailored consultancy services can assess exactly how much energy your business is using, compared to the capacity is of your current plan.
Want to find out how you can save money? Get in touch or book an appointment with Concise Energy.