Rising energy costs – how businesses can take control

Energy costs continue to be a significant concern for UK businesses, with many still feeling the impact of recent price volatility. While wholesale prices have eased slightly from previous highs, costs remain high compared to historic levels and uncertainty around global supply continues to create pressure.

 For many SMEs, managing energy costs is now a key part of maintaining profitability.

The good news is that there are practical steps businesses can take to reduce their exposure and improve efficiency.

Review your current energy contracts

Many businesses are still tied into contracts agreed during peak pricing periods. If your contract is due for renewal, now is the time to shop around. Fixed rate contracts can provide certainty, while flexible tariffs may offer savings if prices fall further. Speaking to an energy broker can help ensure you’re getting a competitive deal.

Improve energy efficiency

Reducing consumption is often the quickest way to cut costs. Simple changes can make a noticeable difference, such as switching to LED lighting, installing motion sensors or ensuring equipment is turned off when not in use. For businesses with larger premises, investing in insulation, energy efficient heating systems, or smart controls can deliver long term savings.

Monitor usage more closely

Understanding where and when energy is being used is key to managing it effectively. Smart meters and energy monitoring tools can provide valuable insights, helping you identify inefficiencies or unusual spikes in usage. Once you have this data, it becomes much easier to make informed decisions.

Consider flexible working or operational changes

Where possible, adjusting working hours or operations to reduce peak time energy use can lower costs. For example, shifting certain processes to off peak hours or adopting hybrid working models may reduce overall energy demand.

Explore government support and incentives

There may be grants, tax reliefs or support schemes available for businesses investing in energy efficiency or renewable solutions. While support has been scaled back in recent years, it’s still worth checking what is currently available and how it could benefit your business.

Plan ahead

Energy costs are unlikely to stabilise completely in the near future. Building these expenses into your financial forecasts and regularly reviewing your cost base will help you stay prepared. Proactive planning is far more effective than reacting to rising bills.

Final thoughts

While energy costs remain a challenge, businesses that take a proactive approach can reduce their impact.  By reviewing contracts, improving efficiency and planning ahead, you can take greater control over one of your most unpredictable expenses.

If you’d like support reviewing your costs or factoring energy into your financial planning, the Swindells team is here to help.