Keeping the lights on in the Energy Crisis: A how to Guide
Even with rising energy costs your small business can stay resilient in the short, medium and long term. Here are some practical changes you can make to run more efficiently. Plus, where to get help if you’re really struggling.
In the short term:
Take action.
An action-oriented approach is essential to tackling the challenge. Act quickly.
If you’re already struggling with paying your energy bills, contact your supplier straight away. Talk to them about working out a new more affordable payment plan, payment breaks or extensions of payment deadlines. Consider switching providers.
Check the energy back-billing rules. In some circumstances, you can’t be charged If you are a microbusiness, and your supplier is billing you for energy you used more than a year ago. For more information head to Back-billing explained | Ofgem
Implement energy saving measures as soon as possible. Small incremental changes can add up to significant savings. Make sure you’re doing all the obviously things like installing energy saving lightbulbs, lowering the thermostat by a degree or two, switching off lights when rooms are not in use.
In the medium term:
Implement ongoing energy monitoring and control.
Get to grips with your energy use. You can’t control what you don’t understand. Start by monitoring and tracking your energy usage. A smart meter will be able to show you a breakdown of energy use according to fuel type, and usage over days, weeks and months. Some smart meters also show you whether your energy usage is high, medium or low based on previous usage.
Once you know what your energy requirements are, you can start to see where you might be able to save.
Create an energy usage strategy and some actionable goals.
Rather than simply planning to reduce your energy use, be more specific. Set a defined target like reducing your energy bill by 10% in the next 30 days, for example.
Don’t be afraid to try new things. Innovation is often born out of hardship. And any successes and learnings will make you stronger in the long term.
Think beyond the obvious.
Monitor your progress. And move on quickly if what you’re doing isn’t working. Stay flexible.
Engage your staff.
It’s important that you talk to your team about how the energy crisis is affecting the business. Be clear about what you’re trying to achieve and share goals and how you plan to achieve them.
Ask for input and ideas from the whole team. And then listen well. Remember, those who work in your business might understand certain aspects of your business better than you do. Even the newest or most junior members of the team could be a source of valuable insights.
Be positive and compassionate with those around you. Not everybody finds change easy.
Celebrate small wins together.
Leverage the community around your business.
Remember, you’re not alone. Your suppliers, customers, staff and other small businesses are all struggling with rising energy costs and inflation. By asking about how they’re coping and talking about your own challenges and any positive learnings you might have, you’ll be strengthening your support network.
You might find innovative ways of collaborating with other local businesses. Perhaps you share some expenses? Getting together to create promotions and events could benefit everybody. Consider negotiating with suppliers as a collective for better rates. Think about how you can share space and other resources with those in the same industry or area.
Engaging with your community in person and on community websites will help you keep abreast of relief or support that might be available in your local area.
Equipment
Assess your equipment regularly. Well-maintained equipment is likely to run better and more economically and last longer.
Repair and reuse everything you can. It’s more sustainable and will save you a fortune. When you do need to replace or purchase additional equipment, consider second-hand or refurbished options. If you’re strapped for cash, look at renting equipment until the situation improves.
In the longer term:
Operational changes
You may find you need to make more profound changes to the way you operate to stay afloat. Change isn’t easy, but the good news is that it’s cheaper and faster for small businesses to pivot than their bigger more established counterparts.
Changing what you do, when or how you do it could yield huge savings and make your business stronger in the long run.
Having more staff working from home could enable you to reduce the size and cost of your premises. You might consider making the switch from being a bricks and mortar business to an online one. Or you may decide to move to a wholly Work From Home model or choose to go into a shared office space.
Cutting down on some products and services and replacing them with more energy efficient ones could help get you through the tough times. Shortening your hours, especially in winter, could make a huge difference to your energy usage. So could closing in quiet times. Consider changing up your routes to market, products, services, channels to favour more energy efficient choices.
Plan to replacing equipment with energy efficient alternatives. Switch vehicles to electric and explore solar or heat pump options.
Playing your part in the race to carbon net zero
A shift in the way we all use energy is inevitable as businesses and communities contend with the realities of global warming and climate change. Businesses that manage this transition early, based on sound, sustainable strategies and behaviours will likely gain respect and loyalty of consumers and set themselves up for long-term success.
Get help.
Talk to your energy provider, your financial planner, your accountant, your bank, your mentor and look at what support your central and local government are offering small businesses.
In the EU look to the European Energy Network for information on out how to reduce energy consumption and switch to renewable energy. For details about support schemes explore COSME, the European Structural and Investment Funds and InvestEU.
In the UK there are numerous schemes designee to help you reduce your energy bills including The Boiler Upgrade Scheme and The Workplace Charging Scheme. Some local councils offer grants if you meet the criteria. Find out more at ofgem.gov.uk and GOV.UK business finance and support finder.
