CORONAVIRUS - ENERGY COSTS - 30.06.2020

Keep energy costs under control

If you are about to reopen the offices or a workplace then now is the time to do a few quick checks that could save hundreds of pounds in energy payments. What are they and what will you save?

Easy win

The average small business can save between £5,800 and £12,200 on energy, and a few quick checks before the office reopens could help.

Check the thermostat. You closed the office in March. Now summer is here you can turn the heating off.

Switch it off. This is probably not the time to be undergoing a big staff engagement campaign but make sure any energy-saving policies cover all appliances. The cost of desk fans, vending machines, computers, etc. left on can rack up. A small office could save around £800 on the flick of a switch.

Appliance Cost/unit/yr Total cost Potential saving
Phone charger £2.50 £125 £125
Desk fan £5.20 £52 £52
Vending machine £255 £255 £255
PC (standby) £3.90 £136.50 £136.50
Printer £27.30 £54.60 £54.60
Copier £54.60 £109.20 £109.20

Switch supplier. Almost half of SMEs are on pricey default terms for their energy. It’s quick and easy to find a better deal. Even the very smallest firms with low energy usage can save £140/year.

Lights out. Lighting can account for 50% of the energy spend in the average office. As well as inside, make sure any external light programmes are changed so they are not coming on too early or going off too late. If you have cleaners who come in after hours, make sure they also adhere to a last out, lights out policy. If you are replacing bulbs, then go for LEDs. Even in a very small office of 20 people this will save around £50 a year. And the technology is now on a par with other options.

Check your meter. If your energy bill is paid by direct debit, then the chances are you are in credit if the office has been closed for several months. Take a meter reading and ask the supplier to recalculate your monthly or quarterly bill accordingly, and factor in any reduced hours/production that will see energy demands fall.

Example

Acom usually pays £300 per month on energy (£3,600 p.a.). However, the site has been closed for the past two months and staff are likely to be working off site for another month, before returning at 50% capacity for three months and 60% until year end. This has a dramatic effect on energy: instead of £3,600 for 2020 the usage is likely to be closer to £1,900, so having paid £300 a month from January to May it’s already paid most of its energy bill for the year.

What you’ll save

Acom renegotiates the monthly direct debit to reflect this, otherwise it is cash in the supplier’s pocket rather than the company’s (see The next step ).

Paid to date (five months) Remainder of year Total paid
Do nothing £1,500 (5 x £300) £2,100 (7 x £300) £3,600
Renegotiate payments £1,500 (5 x £300) £392 (7 x £56) £1,892

For the workings behind the example, visit http://tipsandadvice-financialcontroller.co.uk/download (FC 12.10.07).

Renegotiating the monthly energy payments to account for closure and reduced capacity will put money in your pocket rather than the supplier’s, in our example £1,700. Complete our other checks to cut bills further.

© Indicator - FL Memo Ltd

Tel.: (01233) 653500 • Fax: (01233) 647100

subscriptions@indicator-flm.co.ukwww.indicator-flm.co.uk

Calgarth House, 39-41 Bank Street, Ashford, Kent TN23 1DQ

VAT GB 726 598 394 • Registered in England • Company Registration No. 3599719