Managing Your Energy as a Small or Medium Business

In a climate of rising costs across the board, businesses need to do whatever they can to ensure that, where there’s an expense in their control, that they manage it as best they can.

 

Nowhere is this more important than energy costs which continues to be one of the greatest financial burdens on SMEs in the UK.

In this article we’re going to explore how you can better manage your energy costs to support the financial wellbeing of your company, as well as reduce your environmental impact.

 

Why should you care about energy efficiency?

Reducing your business’ energy consumption should be something you care about, and not just because it’ll save you money on overheads.

Consumers care about the impact they have on the environment, and this extends to the businesses they choose to buy from, so if you can prove your green credentials it might give you an advantage against the competition.

 

Energy consumption and regulatory compliance

Local, national and international governmental bodies have set ambitious targets for cutting carbon emissions, but how do those goals impact your business?

Despite the UK government making binding pledges on greenhouse gas emissions, there is limited legislation that actually impacts British businesses.

Instead, the government is keen to encourage businesses to adopt a ‘net zero’ mentality by promoting the benefits of reducing emissions, while private organisations, such as the non-profit B Lab’s B Corp initiative, offer businesses a way of demonstrating to customers and investors their sustainability credientials.

There are also a number of environment-focused tax allowances and schemes that businesses can take advantage of.

 

7 ways UK businesses can reduce energy consumption

Unsure of how you can slash the amount of money you spend on energy every month? Here are seven simple solutions it’s worth considering.

1. Conduct an energy audit

An energy audit helps identify where and how your business consumes energy, highlighting inefficiencies and quick wins, and uncovering hidden energy drains and informing a clear strategy for improvements tailored to your operations.

2. Upgrade to LED lighting

Switching to LED bulbs can reduce lighting energy use by up to 80% compared to traditional lighting. LEDs also last much longer, reducing maintenance costs and waste, making them a cost-effective and environmentally friendly option.

3. Install smart meters and energy monitoring systems

Smart meters and real-time monitoring tools provide visibility into energy use patterns. They help businesses track consumption, spot anomalies and adjust behaviours or equipment schedules to minimise unnecessary use.

4. Maintain heating, ventilation and air conditioning (HVAC) systems

Make sure you’re regularly servicing HVAC systems to ensure they’re running as efficiently as possible, as well as operating safely.

5. Switch to energy-efficient equipment

Think that retaining old equipment is avoiding the cost of upgrading them? That’s a false economy, as replacing outdated appliances and machinery with energy-efficient models can dramatically cut power consumption.

When shopping around for new equipment, be sure to look out for equipment with high energy ratings and consider the lifecycle costs, not just purchase price.

6. Encourage energy-conscious behaviour

Encouraging an energy conscious culture among staff can make a big difference to your yearly energy bills.

Simple habits such as switching off unused equipment or using natural light instead of electric lighting can make a big difference, but it requires buy-in from staff at every level of the business. Of course, this is easier for SMEs to manage, but it might still require the implementation of staff engagement campaigns and thorough training to drive actual behavioural change.

7. Install timers and occupancy sensors

Electronic equipment being left on in empty rooms is a major source of wasted energy, so consider installing timers and motion sensors that can automatically switch off lights and equipment when not in use. This is particularly useful in meeting rooms, bathrooms or storage areas that are only used occasionally throughout the working day.

Ready to reduce costs and save money?

In an uncertain economic landscape it’s important for businesses of all sizes to do what they can to control costs and reduce their tax burden.

Managing your energy consumption doesn’t just significantly reduce your overheads and present opportunities for tax savings, but it can also be the difference between consumers choosing your business or that of your competitors.

Here at Warr & Co we work with companies of all sizes to ensure they’re as tax efficient as possible, and this includes making the most of tax breaks and schemes designed to encourage UK businesses to be more sustainable.

To find out more about how we can help get in touch with the team today, or book a free consultation to understand how going green can benefit your bottom line—as well as the planet.