Overcoming High Energy Prices: Solutions for Large Businesses

The impact that high energy prices have on businesses is a major issue. To make matters worse, some energy brokers hide their commission fees, creating contracts that benefit themselves – as opposed to you, the customer. Not only are high energy prices extremely frustrating and unethical when brokers act this way, but they can be illegal if the commission fees earned by the broker are not properly disclosed.

If your business was mis-sold an energy contract, it may be possible for you to claim back those overpayments – and that’s where we come in.

Our team are experts at helping businesses take control of their mis-sold energy fees. Think you’ve got a case? We operate an unrivalled no-win, no-fee service, complete with a free-of-charge assessment to get things moving smoothly.

With a top track record and quick turnaround, our clients rate us as excellent. So, if you’d like to get started, check your eligibility for a business energy claim and we’ll take it from there.

The Impact of High Energy Prices on Big Businesses

It goes without saying that high energy prices can have far-reaching economic impacts, both in the short term and long term.

Higher energy prices can directly lead to increases in production costs for manufacturers, which causes ripple effects up and down the value chain.

For example, due to higher energy prices, big businesses may be forced to up the costs of their products or services, which will result in reduced customer demand and potentially a major loss of profit – which is, of course, detrimental to any enterprise.

Company insolvencies in England and Wales hit a 13-year high between May and June 2022, and, according to The Office for National Statistics (ONS), there were 5,629 insolvencies in the second quarter of 2022.

Therefore, as business energy prices continue to rise, large businesses will need adequate and effective strategies to ensure their long-term financial health and, ultimately, their survival.

Why Are Energy Prices So High for Businesses?

So, just why exactly is business electricity so expensive? According to a recent report from the government, the average business now faces electricity costs 64% higher than in 2022, an almost unbelievable statistic.

Some of the reasons why energy prices are so high include elevation due to the ongoing war in Ukraine – Russia has restricted its usually affordable and dependable supply of natural gas to Europe, which has forced Britain to turn to liquid natural gas imports, which are far more expensive.

As the UK’s electricity grid relies on natural gas for its baseload power generation, any gas price increase directly, unfortunately, translates into higher electricity costs for businesses in the UK.

Below is a breakdown of the average business rates for electricity:

• Very small businesses: 17.99 pence per kWh
• Small businesses: 16.25 pence per kWh
• Medium businesses: 13.22 pence per kWh
• Large businesses: 12.92 pence per kWh
• Extra large businesses: 11.77 pence per kWh

And, although businesses technically are able to enjoy cheaper rates, the energy bills for businesses are often significantly higher due to the fact that they use more energy.

Solutions for Reducing Your Business Energy Prices

If you are one of the thousands of businesses up and down the country that have been mis-sold a business energy contract, you could be eligible to make a claim worth thousands of pounds.

Although many businesses pay their energy bills without much of a second thought, due to the rapid increase in energy prices over the years (as well as dubious contracts from unethical brokers), now has never been a better time for reducing your business energy prices – and here at Business Energy Claimline, we can help you do just that.

Here are some effective solutions to keep your costs down.

• Conduct an Energy Audit

The purpose of an energy audit is to identify areas of your business where energy use is having a negative financial impact on your company, and you simply can’t begin to reduce costs if you don’t know where in your business you are losing money.

• Change Your Energy Supplier

Shockingly, as many as 1.3 million businesses are losing out on better energy deals by staying with their current supplier. Changing your energy supplier is probably the best way to reduce your energy prices – and with so many suppliers out there, it’s never been easier to find a better deal, and you can do it in a matter of weeks.

• Offer Remote Working

Having remote employees is a great way to bring down your energy bills and save a lot of money. If there are less people physically in the workplace, then less energy is going to be used on things such as computers, kettles, and other office-based equipment. We understand that this may not be possible for all businesses, but it is an effective way to minimise the cost of your energy.

Through the implementation of remote work, companies can save an average of £6,810 each year for each member of staff that spends half of their working hours working from home. From this figure, approximately £1,857 of this is due to decreased utility bills, meaning that implementing remote working is something energy-conscious enterprises should seriously consider.

• Replace Your Traditional Light Bulbs with LEDs

If you are one of the businesses that have not yet made the switch to LEDs, then you are potentially missing out on huge savings. LED bulbs staggeringly use over 75% less energy than traditional incandescent lighting. What’s more, they don’t burn out like halogens or incandescent, meaning that with normal usage of six to eight hours a day, your LED bulbs could last for up to 15 years.

• If You’re Not Using It, Don’t Keep It On

It goes without saying, if you’re not using a certain electrical appliance, don’t keep it on, as this is a massive waste of energy. Instead, take advantage of natural sunlight.

According to the UK government, businesses could be saving £1.1 billion by implementing practices such as this. So, turn the lights off whenever you leave a room, and remember there’s no need to light areas that are not in use, such as storage cupboards or vacant meeting rooms.

• Involve Your Employees

Managing your energy can be challenging, but if you educate and inform your employees about the practices outlined above, you will be able to do it much more efficiently, and significantly reduce your business energy prices.

Assess the Energy Consumption of Your Business

As touched upon above, assessing your consumption levels is critical for bringing down costs, which is why it is a good idea to conduct a business energy audit. There is a misconception that energy audits are time consuming and may not yield any significant results – but that couldn’t be further from the truth.

A business energy audit will provide you with a clear overview of your business’ current energy usage, giving you insights into the areas that might be a financial drain.

In other words, a simple, straightforward energy audit can make a huge difference to your business’ bills and help to reduce the inefficient energy habits your company might have picked up over the years. As mentioned above, these habits could be simple things such as leaving lights on in rooms that are not in use, not using energy-efficient lighting, or leaving appliances running when they are not needed – even minor changes can contribute massively to reducing your energy bills.

Financial Incentives and Grants

An increasing number of government schemes now offer loans, grants, and subsidised energy-saving measures to support businesses in reducing their impact on the environment and reducing their overall energy bills. The UK government offers a wide variety of incentives and schemes that are aimed at helping companies to:

• Implement energy efficiency measures
• Save on the initial costs of energy efficiency resources
• Reduce waste
• Develop sustainably

Strategies for Procuring Cheaper Business Energy Prices

There are a number of additional ways in which businesses can procure cheaper energy prices. We have explained some above, but it is worth noting that there are two main elements to your business energy bill – your consumption data and your energy contract rates.

Getting cheap business energy means looking for reductions in both; here’s how you can do just that.

Monitor Your Contract End Dates

Keep an eye on the date that your contract ends. By doing this, you can terminate an existing contract and move on to a far cheaper energy deal, allowing you to save money and overcome high energy prices.

Make Use of the Services of an Energy Broker

Obtaining and comparing quotes can sound tedious, complex, and time consuming to say the least. However, if you choose the right energy broker (a professional who knows the energy industry inside out) and make use of their services, then they can assess your business energy needs and negotiate with suppliers on your behalf – in other words, they can do all the hard work for you.

However, if you have previously hired an energy broker and feel that you have been mis-sold a contract, then here at Business Energy Claimline, we are here to help.

You may be eligible for compensation worth thousands of pounds – Contact us today to find out more.

Become More Environmentally Friendly

Invest in renewable sources such as wind turbines or solar panels. When you do this, you’ll receive payments from the government’s business feed-in tariffs as well as reduce your reliance on traditional fuel sources, allowing you to protect the environment whilst at the same time significantly reducing your outgoings.

Accurately Compare Quotes

There are two things to consider when comparing energy quotes:

• The unit cost of gas and electricity – This is dependent on your energy consumption and will vary each month according to how much gas and electricity your company has been using.
• The supplier’s standing charge – This is a set amount that is charged every month.

Sometimes, lower energy unit prices are offset by the supplier with a higher standing charge, which is why it is so crucial that you take both of these factors into consideration when trying to obtain the best deal.

Analyse Your Data with a Smart Meter

Your energy supplier will be able to supply you with a smart meter (for free). These can be used as a great way to monitor, collect, and analyse your energy data and how much energy your business is actually consuming.

Once you have established this, you will be able to implement energy-efficient measures and ultimately keep your costs down.

Take a Proactive Approach to Temperature Control

A large proportion of business energy expenditure lies within the regulation of indoor temperature, which is often done poorly. Consider installing insulation or double-glazing to keep the inside temperature more consistent and turn down the thermostat by a few degrees if you can. By becoming more proactive in this area, you can potentially save a lot of money on your energy bill.

Renewable Energy Solutions for Large Businesses

Whilst switching energy suppliers is a quick and easy way to overcome high energy prices, switching to renewable energy can assist in cutting the costs even further – and it might even aid in enhancing the image of your business. So, what sort of renewable business energy options are currently available on the market?

• Wind power – Uses wind turbines to generate electricity for business. This is suitable if you have large amounts of building-free land.
• Solar PV panels – Uses sunlight to generate electricity. These are very simple to install and can easily be fitted on the side or roof of your building.
• Solar thermal energy – Uses sunlight to heat the water stored in your hot water tank. These are easy to install and can be fitted on the side of your building.
• Biomass systems – Generates electricity and heat by burning or fermenting organic material, such as straw or wood pellets, with a combined heat and power plant.
• Anaerobic digestion – Generates heat and electricity by burning the methane produced by breaking down organic material, such as plant or animal waste. This solution is suitable if you have a lot of space to store the fuel.
• Geothermal and ground source heat pumps – These use low-level heat naturally contained in the ground to provide both heating and cooling.
• Combined heat and power – Uses a CHP system to capture the heat produced by your electricity to heat your water.
• Hydroelectric power – Generates electricity from the water flowing through an immersed turbine or water wheel. These are site-specific but can provide a reliable energy source.

When deciding on which renewable energy solution(s) are right for you, it is important to consider the nature of your business. Things such as the size of your building and how much free space you have will play important roles in this, but investing in renewable energy is a fantastic way to keep your costs down.

Reduce Business Energy Consumption

There are a number of ways to effectively reduce your business’ energy consumption – it may sound like a challenge, but it doesn’t have to be.

At the end of the working day, ensure that all equipment is turned off – doing this can make a real difference. Over the course of a year, a single desktop computer and PC monitor will use up nearly £10 from being left on standby alone. Multiply that by 50 members of staff and suddenly there’s a £300 annual saving to be made simply by switching off your computer at the end of the day.

We understand the importance of keeping your business warm and comfortable for your employees, but according to the Energy Saving Trust, turning your thermostat down by just one degree can save up to £145 annually in a three-bed semi-detached home, so just imagine what it can do in a large business.

In addition, you might want to consider installing ceiling and wall insulation too. Whilst this can be pricey, it is definitely a worthwhile investment, as you’ll save more over time on your utility bills if your building is sufficiently insulated – this will mean you won’t have to turn on the heating, and your employees will be warm and comfortable at work.

And finally, consider how your business utilises charging facilities. Over half of the UK’s population now charge their devices at work, or in cafes, libraries, and other public places. Collectively, this is estimated to add a potential cost of £12.5 million for high-street firms each year.

Implementing stricter device charging policies in the workplace is not just going to save you money in the long run, but it may also improve the productivity of your employees, so it’s something to consider.

Get the Compensation You Deserve with Business Energy Claimline

Here at Business Energy Claimline, we pride ourselves on excellent customer service, and our client satisfaction is our number-one priority – that’s why we are rated so highly.

If you’ve been the victim of an unethical broker and have been mis-sold your business energy contract, then we are here to help. Financial security shouldn’t cost your business. If you don’t win your business energy claim, then we won’t charge you a penny – and that’s a promise.

Our energy experts and legal specialists are devoted to providing you with hands-on guidance, and you can count on us to get you assessed and on the road to a rebate quickly.

For more information on the outstanding services we can provide, do not hesitate to contact our friendly and expert team today.