What is the new energy support for businesses?
The Energy Bill Relief Scheme (EBRS) was welcome support for many UK energy customers, allowing them to keep their energy costs manageable. The scheme is coming to an end this March, however, with the arrival of the Energy Bill Discount Scheme (EBDS) businesses will still get some support as this new scheme will offer bill discounts to eligible business customers.
It is yet unclear how much savings can be made under EBDS, but it is going to be up to a 90% reduction in support.
The government is making necessary changes to stay within its budget, reducing the previously offered support level from £18 billion to a much more sustainable amount. This change will be effective from April 1st, 2023, and will last until March 31st, 2024. The new plan allows businesses to receive assistance over a longer period, this might not make much of a difference as this support will only be applied to energy bills after they reach a certain threshold price:
- For electricity, if the wholesale portion of the bill rises over 30.2p/kWh then a maximum of 1.96p/kWh discount.
- For gas, if the wholesale price rises over 10.7p/kWh, a maximum discount of 0.697p/kWh will be applied.
Read more about the Energy Bill Discount Scheme here.
What changes have been made from the current support?
The current energy support offered by the EBRS is a great way for businesses to save money in their yearly budget by accessing fixed-rate discounts on wholesale energy prices. They cap the wholesale element for electricity at 21.1 p/kWh and gas at 7.5 p/kWh. This has offered some protection for businesses since Autumn 2022.
With the EBDS reducing up to 90% of their price protection for businesses, there is a legitimate cause for concern when it comes to energy bills. This could leave many businesses feeling the pinch when energy prices rise throughout the year. It is therefore important that companies look into other solutions and ways in which they can save money on their energy bills. One option may be to shop around for better deals and make sure they are getting the best offers available to them. It may be time-consuming, but understanding more about energy contracts could be the key to protecting businesses from rising energy costs.
How can your business tackle high energy bills?
Businesses need to take prompt action to mitigate the massive rise in energy bills they are going to be hit with this year. With the price of electricity projected to increase significantly by April, many companies will struggle to maintain sustainability without making long-term changes now. This means looking at ways of conserving energy and reducing running costs both of which can help lower electricity costs substantially over time. Businesses must act urgently or else they'll face substantial losses due to spiralling energy prices.
Below we will go through some ways your business can ensure lower energy bills:
Energy consultant
Having an energy consultant can be a great asset to any commercial business. From finding the best supplier and prices to having insight into current market trends, energy consultants can help a business save time and money all while finding the energy mix that works for them. Not only does this benefit already operational businesses, but businesses seeking start-ups or expansion can utilize consultants' expertise to fully optimize their energy needs to not pay more than necessary. having an expert energy consultant by your side will save you time and money.
At Resolve Energy we have a team of energy consultants that are ready to help with your business energy bills. To arrange a call with one of our consultants today then please get in touch here.
Reduce consumption
Reducing energy consumption in the workplace can help businesses run more efficiently, save money and protect the environment. By taking simple steps such as replacing light bulbs with energy-efficient ones and responsibly managing temperature settings, businesses can enjoy lower overall energy bills and maintain a competitive edge. Smart technology is another way for businesses to control their energy costs by allowing staff to adjust lighting or heating remotely to complementary times of the day, reducing unnecessary overuse. Additionally, utilizing renewable sources of energy such as solar thermal systems can provide dramatic results without relying on expensive fossil fuels. Reducing energy consumption with these strategies helps minimize rising business costs while demonstrating an organization's commitment to sustainability.
Sustainable infrastructure
Investing in sustainable infrastructure such as solar panels and voltage optimisers can be a great way to reduce the energy bills of any business. By doing so, it becomes less reliant on power from the grid, allowing for more control when it comes to energy consumption and costs. Solar panels provide renewable energy sources that are both cost-efficient and promote sustainability, while voltage optimisers once installed can help reduce electricity consumption by up to 25%. It's this combination that makes these two options some of the most effective ways of reducing energy bills - giving businesses greater financial stability.
Solar panels
Installing a commercial solar panel system is becoming increasingly popular amongst businesses, as it can provide an efficient and cost-effective way of reducing energy costs and dependence on the national grid. As solar panels generate electricity even when the sun is not shining, they make an ideal choice for those wanting to reduce their reliance on electricity produced by the grid. As well as reducing your dependency on the national grid, solar panels also offer other benefits too; depending on the type of system you install, you could use batteries to store excess generated energy, making sure you have access to enough electricity for your business needs - even when sunlight levels are low. Plus, most businesses benefit from reduced bills through more efficient energy consumption that a commercial solar system can provide. See more here
Voltage optimisation
Voltage Optimisation (VO) is the process of reducing a supply voltage to a level that matches more closely with the requirements of the connected equipment, reducing power consumption and saving money on electricity bills. In the UK, for most electric equipment, this would mean using 220V instead of 253V. This can have huge benefits as it reduces energy consumption which leads to savings in electricity costs. Looking at data from businesses that have been using VO shows that not only will you make your money back in savings but the payback is usually seen in 2 to 4 years; meaning it’s a great investment for any business looking to keep their expenses down. Additionally, the use of VO ensures that electric equipment works at its best and most efficient level possible - something that cannot be overstated when it comes to efficiency and longevity in business operations. see more here
If you're looking to save money on your energy bills then why not get in touch today? The relationships Resolve Energy has developed with over 24 of the UK’s biggest business energy suppliers allows our energy experts to source the best business energy rates available for your company right when you need them. Request a free quote today and start saving money on your energy.
