How to reduce costs in a business by reducing your energy bills

Energy costs are very volatile. In any year, non-domestic energy prices can rise or fall by over 50%. There are many myths about how to procure energy contracts successfully for an organisation, they are just that - myths. They should be ignored if you are looking to reduce costs in business. 

One of the most common myths about energy savings is that joining a buying group will help you to significantly reduce energy costs, but this is wrong. The difference in prices paid by large energy users and small energy users is a few percent; sometimes as little as 1% unless you are buying several million KWhs of gas or electricty per annum. Sometimes the energy markets invert so small businesses pay less than larger energy users. 

For example, one of our clients was a car dealer. As part of a UK network of hundres of dealers, he thought he would be able to purchase his energy at lower prices by joining their energy purchasing group. Before committing however, he asked us to source the best price for a 12-month fixed term electricity contract. Our price was lower, despite the fact that we were buying for only four sites, and the buying group was buying for thousands of sites. 

To reduce costs in a business, you need to be well-informed about these myths and not be swayed by them when making decisions about how to reduce costs in a business. 

If you'd like to find out more, just visit www.energysavingsforbusiness.com, where you'll be able to obtain a copy of our Managing Director's new guide, "The Secrets to Successful Energy Procurement".