It might have sounded like a great idea
before you started your own business to run a small business. Once the starting
expenditures start to mount and you become unsure about how to stick to your
monthly budget, issues may arise.
You must keep track of all expenses,
including the typical small company utility costs, to avoid financial
difficulties. If you become aware that you require help paying your bills, you
should create a savings plan or decide on a loan for your start-up or small
If you're not cautious, you can wind up
shelling out a lot more money for your company's gas and electricity. It might
be challenging to decide which providers and tariffs are best for your business
when there are so many options available.
This paper provides information on the
typical utility bill for businesses so that you may better understand what
constitutes excellent value for money. It also describes the costs and details
you will discover on your gas and electricity bills, together with payment
options and - most importantly - strategies for reducing your energy use.
The size of your facility, the number of
staff you have, the kind of machinery you use, and how effective your systems
are will all affect the typical power cost for businesses. For instance, a
small business's average utility expense is probably going to be fairly low
than the bills generated by large enterprises with larger facilities.
Your gas and electricity bills contain a
lot of fees, which might make them seem difficult. This comprises the price of
electricity at wholesale as well as any fees levied for the use of the
transmission and distribution systems.
Additionally paid are metering fees, VAT,
which is typically levied at 20%, and supplier margins. This is the price your
provider charges you to recoup their expenses and turn a profit.
The Climate Change Levy, which is
intended to incentivize businesses to increase energy efficiency and reduce
their carbon emissions, is also probably included in the energy bill. You could
be excluded from this, though, based on how much green energy you consume.
Your consumption rate in kilowatt-hours
is one of the key factors on your energy statement, which you must pay special
attention to (kWh). Essentially, this is the amount you must pay to cover the
gas or electricity you consume. As was already noted, this differs greatly
between various business kinds.
Micro businesses - In general, these
businesses consume around 5,000 and 15,000 kWh of gas annually, and their gas
costs range from £400 to $820.
Small enterprises - They often use more
energy (15,000–30,000 kWh), and their annual energy costs typically range from
£820 to £1,458.
Medium-sized companies' yearly energy
costs range from £1,450 to $2,240, with use averaging between 30,000 and 65,000
Large companies - It should come as no
surprise that major companies consume the most gas overall, averaging about
75,000 kWh annually. Larger businesses frequently have customized tariffs and
receive the lowest per-unit gas rates, but because of the enormous volume of
gas that they use, their average gas cost will be much higher.
The various industries and business sizes
in the UK will affect their typical business power cost once it comes to
Small enterprises. Micro businesses in
the UK typically use around 5,000 and 15,000 kWh annually, costing around £900
Small companies. Small businesses
generally use around 15,000 and 25,000 kWh, which results in annual energy
costs between £2,370 and 3,660.
Medium-sized companies. These businesses
spend an average of £3,780 to £7,240 per year on energy, which ranges from
25,000 to 50,000 kWh.
Large firms are at the upper end, using
an estimate of 90,000 kWh of power each year. Similar to gas, despite the fact
that large businesses frequently receive the most affordable rates owing to
their size, their extensive use of electricity may result in their spending
substantially more overall.
The first step in improving energy costs
is starting with an energy audit so you can identify where costs are coming
from. Then you can determine what changes could be made to decrease your costs.
Most energy audits include a look at
consumption; however, specialized audits, such as rate class optimizations or
billing error audits, can provide more detail and often bear greater fruit in
regards to future savings and large refundable costs.
An enhanced and specific energy audit
requires knowledge and experience with the many utilities to find additional
cost savings that will often cost nothing to implement. These types of audits
can be done without an on-site visit, which can make them an efficient choice
You can determine if you're on a
reasonable tariff by having a comprehensive understanding of the energy costs
that other companies in your industry pay. You may now assess how much your
particular small business is spending on gas expenses by comparing it to the
typical gas bill for small businesses that we described earlier.
It could be time to shift if you believe
you are paying too much for your electricity. Utility
Bidder can help you quickly and easily identify a tariff that works
for you, and we will handle the shifting procedure on your behalf. Utility
Bidder is a specialized energy comparison and transitioning service provider.
There are further strategies to cut your
company's energy costs. Among the most crucial things is to figure out how to
make your business use less energy.
The efforts you take might be as
significant as replacing your equipment with more energy-efficient models and
insulating your facility or as simple as posting signs throughout your office
reminding employees to turn off lights and other machinery when they aren't in
You may want to perform an energy audit
to assist you in locating possible wasteful areas. Reduced energy use can not
only save you money but also assist your company in becoming more ecologically
Typically, when considering ways to cut
energy bills, it is assumed that using less kWh of power will result in lower
total costs. Although purchasing new, efficient technologies to reduce
kilowatt-hour use is an efficient approach to save money, it may cost a
business thousands of dollars. Other strategies exist for lowering utility
expenses without spending money on new machinery.