The continuous rise in energy prices has been a major cause for concern and stress for business owners around the country in particular – even more so than the residential sector. It isn’t entirely impossible to bring down these expenses to an extent, but it requires understanding the situation and the techniques necessary to do so.
Those that are looking to start a new venture, expand their current business, or bring down their energy expenses to a more manageable number, should find the following facts to be informative and helpful.
Which Sector Does Your Business Belong To?
Perhaps the very first thing to consider would be the sector in which you are currently trading. The following were the top consumers of business energy in the UK, as of 2018. There is no reason to believe the order will change this year either, but due to the 1.1% increase in the UK’s overall power consumption, the numbers will certainly vary by the time 2019 comes to an end.
- 14,575 ktoe consumed by the Commercial and Misc. Services Sector
- 3,774 ktoe consumed in manufacturing and industrial-grade services
- 3,668 ktoe consumed in chemical manufacturing
- 3,110 ktoe was utilised in producing food, beverages, and tobacco
- 2,689 ktoe was used in manufacturing products from natural minerals
If your business is in the top five list and you are feeling the pinch, it’s time to think about ways in which you can bring your energy consumption and expense down significantly. Others that did not make it onto the top five list, but were among the top consumers of business energy, including metal manufacturing (1,507 ktoe) and printing & publishing (1,890 ktoe).
Do Business Owners and Budding Entrepreneurs Really Have a Choice?
Although the price hike is inevitable at the moment, surprisingly enough, there are a lot of smaller establishments in the UK that do not know about business rate comparison sites operating their area. Sites like Utility Bidder provide businesses of all sizes with the opportunity to choose between the top commercial electricity and gas suppliers in the UK, but instead of just settling with the quote which each supplier presents to the specific business, the platform is ideal for easy negotiations. Due to the competition between the providers, the energy brokers can help heavy, power-consuming facilities, bring down their costs by as much as 45%.
Lean Manufacturing and Management
The final step to take after getting a better deal on your business energy rates would be to adopt lean manufacturing and management methods. Even if the business doesn’t involve manufacturing, there is still a lot lean management can do for any business.
Check out some of the many principles of lean production, supply, retailing, etc. because they are built on the very principle of reducing waste. As energy is by far the most expensive and invaluable resource to waste right now, adopting some of the lean processes could turn out to be revolutionary in bringing down your energy expenses even further.