Energy regulator Ofgem’s price cap doesn’t cover energy bills for Britain’s businesses, making smaller organisations potentially more vulnerable to fluctuations in the market, often due to causes far outside firms’ control, such as the war in Ukraine.
Just a few months ago, for example, forecaster Cornwall Insight reported that a typical small business was paying more than £5,000 a year extra in bills than before the energy crisis, which started in 2021.
And Cornwall Insight has said: “The energy price cap provides households with a level of protection which businesses just don’t have.” (This price cap restricts standing charges and unit rates on household gas and electricity consumption.)
Now the forecaster predicts that the typical smaller organisation will face gas and electricity bills of an average of £13,264 a year by 2025-6. Equally, the intensifying conflict in the Middle East could hike the price of oil and, in turn, energy bills, still further.
What’s more, if you’re a small business, the tighter profit margins make it more difficult to absorb extra charges.
Apart from the financial costs, businesses need to be energy efficient to meet various government energy targets, including:
Net Zero target by 2050: This is a legal target to achieve net zero emissions by 2050.
Energy Savings Opportunity Scheme (ESOS): This is compulsory for qualifying organisations and means organisations must conduct assessments every four years to identify ways to save energy.
Business ambition of 1.5%: Bigger businesses are urged to sign up to the pledge to limit global temperature rise to 1.5°C.
Climate change business hub: This supports smaller and medium-sized enterprises as they commit to reducing greenhouse gas emissions by half by 2030.
These sit alongside other UK energy targets, including an aim to reduce emissions by more than two-thirds (68%) by 2030.
How can businesses reduce energy consumption?
There are all the usual things you can do, including sticking to LED lights, fitting and using smart meters and remembering not to heat damp air. (Open windows to ventilate and swap moisture for fresh air. But, equally, don’t allow draughts to blow in unchecked.)
You could also reap rewards by switching older equipment for newer, more energy-efficient models. Finally, consider looking to fixed-rate energy deals rather than variable rates, to future-proof your finances and provide stability.
Here are two other ways you could ultimately save money on energy bills.
How boiler hire could help your company with energy efficiency
One way you can improve energy efficiency at your business is through boiler hire.
When you hire your boiler rather than buying it outright, you save on the initial expense of purchasing this equipment. You’ll also typically be given the latest models to use, and these are designed to reduce energy consumption compared to older ones, with more economical use of fuel. A-rated boilers, for example, are a minimum of 90% efficient and will last for around a decade and a half.
Meanwhile, modern condensing boilers capture and reuse more of the heat from gases which otherwise escape in the boiler’s flue.
Equally, your boiler will perform reliably since it will be professionally maintained and tested at regular intervals. And the more effective your boiler, the less you will spend on fuel, leading to long-term cost savings. So it can be ideal for places like schools which have strict efficiency targets to meet.
All of which means that boiler hire can make an excellent all-round solution, whether you’re meeting a temporary spike in demand, your regular unit is being serviced or the weather conditions demand it.
Feel the benefits of a thermally broken lintel
Thermally broken lintels are structural features supporting the masonry’s weight above apertures such as windows and doors. The ‘thermally broken’ design of these units minimises heat transfer between the lintel’s inner and outer areas.
Standard lintels, typically formed from concrete or steel, conduct heat from outside to inside, resulting in something called thermal bridging, which can lead to condensation and energy loss.
Thermally broken lintels change this by incorporating a thermal break – a material with minimal thermal conductivity – as a barrier between the lintel’s inner and outer parts, reducing heat transfer and so boosting overall thermal performance.
You can also look forward to greater comfort, less condensation, enhanced compliance with the various energy codes, long-term durability plus design sustainability and flexibility.
In summary, at a challenging time for businesses looking to minimise energy costs, it pays to take a look at all the ways in which you could reduce your gas and electricity outgoings.
