Between 2021 and 2024, the average energy prices for UK businesses increased by over 90%. Prices fell a little towards the end of 2024, but they were still 75% higher than they had been at the start of 2021.
In this post we will explore some ways that businesses can save energy over winter, a period when short days and low temperatures have traditionally forced businesses to increase their energy usage.
Conduct an Energy Audit
To begin with, conduct a thorough energy audit for your business. This involves assessing how much energy each process consumes. Doing this may help you identify some areas where you can reduce your energy consumption.
As part of this, you might review your energy bills from previous years. This could help you pinpoint the key days or weeks in which your business was using the most energy. And if you have not done so already, you could invest in a smart meter, which could provide more immediate insights into how much energy your business is using at any given time.
Quick and Easy Ways to Reduce Business Energy Use
There are many “quick wins” that could help you make significant savings on your business’s energy use over the winter:
- Replace as many lights as possible with efficient LEDs.
- Use motion sensors in corridors, bathrooms, and other areas with comparatively low footfall, to save you from having to light them at all times.
- Ensure that all windows and doors are kept closed when the heating is on. If you cannot afford to get new insulated windows and doors, you can reduce the amount of heat that escapes with curtains and draft excluders.
- If you have a thermostat, do not place it in an area where the heat might fluctuate. Keep it away from anywhere there might be a draft, and do not place it near any machinery that could generate heat. This will prevent the heating from coming on when it is not needed.
Get Your Staff Onboard with Saving Energy
Your staff can actively support you in helping to cut your energy costs, so long as you communicate just what you are trying to achieve, and why.
Ways to encourage staff to help save energy and reduce bills:
- Appoint an energy efficiency champion, who is in charge of looking for ways to reduce energy consumption, and for getting other staff involved.
- Try to make it a competition, with incentives for reducing energy consumption, rather than reprimands for wasting energy.
- Use signs and posters to encourage staff to save energy wherever possible. For example, you could put small stickers next to light switches in bathrooms or storage rooms to remind staff to turn out the lights before they leave the room.
Do I Have to Put the Heating on In the Workplace?
The HSE specify that you should maintain a minimum temperature of 16°C in the workplace, or 13°C in environments where staff may carry out physically demanding work. You can read their full guidelines on workplace temperature.
This means that you do not necessarily have a legal duty to keep the heating on round the clock. However, you should still aim to keep your staff as comfortable as possible when they are at work. Intentionally keep your workplace cold during the winter and the result will be unhappy or uncomfortable employees. This could result in some costly mistakes, and it could even increase your staff turnover.
But if you want to save energy over winter, you could encourage your staff to wear additional layers on the colder days, and to only turn the heating on as a last resort. And wherever possible, you could encourage your staff to work from home. This might be a win-win situation for you and your staff: They could avoid a tiresome commute on a cold and dark winter morning, while you might be able to make savings on heating the workplace.
Ways to Save Money on Business Energy Use in the Long-Term
Above we mentioned how a smart meter could help you review your energy use through providing more accurate insights into how much energy your business is using at any given time. A smart meter could also lead to more accurate energy bills, as rather than paying for your estimated usage, you will only ever pay for the energy you use.
Often, utility companies will offer additional discounts if you set up a Direct Debit to spread the cost of your bills.
In the long-term, you could look to invest in additional insulation for your business. You could also aim to replace your systems, equipment, and machinery, including your boiler, with more energy efficient models.
Finally, if you want to save money on business expenses, you could review your business insurance package.
James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who care about protecting your business. Talk to us and we can help you ensure you are getting the cover you need at the best possible price.