Why is business energy put on the backburner?
Adam Thompson, Utilitywise Chief operating officer, on business energy costs.
Energy costs are one of the major pressures that businesses of all shapes and sizes face. Surprisingly, research has shown that at a time when SMEs are looking to cut costs and increase efficiency the majority of business owners underestimate the potential for saving money by up to 50%*.
While securing the best rate is important, the biggest savings in energy costs come from reducing consumption. This can be done in a number of ways but one of the most efficient was first rolled out here in the North East.
The Edd:e energy monitor is a device that links into your distribution boards to show exactly how much energy is being used by each circuit, where it is being used and when. Without this information it’s impossible to make an informed decision on which energy saving projects will give the best return on investment as you will be acting on guesswork instead of hard fact.
To provide you with the information you need, Edd:e produces a report recommending exactly where and how you can save energy, on average 27%, which ultimately leads to a financial saving.
So why aren’t more businesses focused on energy efficiency? Often, it’s down to priority. A recent survey found that 64% of businesses are bracing themselves for a prolonged period of weakness lasting for more than a year**. With economic uncertainty at the forefront of business leaders’ minds they are quite rightly focused on maintaining their core business.
Staffing levels are also an issue with many SMEs operating on skeleton staff to keep labour costs to a minimum. The knock on effect is that both business owners and employees are stretched to cover their basic workload, leaving little time to manage energy supply and consumption, which is often an ‘extra’ responsibility or forgotten altogether. Employing the knowledge and skills of an energy expert company can prove beneficial as it frees you up to focus on what makes you money not what costs you money, while regular energy reviews ensure that you are on the most cost effective rates for your usage.
With operating costs not showing any signs of slowing, it’s important for business leaders to find efficiencies, a challenge which although daunting can ultimately lead to significant savings – and an energy audit is not a bad place to start.
*Statistics taken from http://www.greenenergy.uk.com/Article.aspx?ARTICLE_ID=343
**Statistics taken from Deloitte CFO survey www.deloitte.co.uk/cfosurvey
This was posted in Bdaily's Members' News section by Mark Jones .