The average business electricity bill has increased from £590.15 to £755.80 since Jan 2016 and looks set to continue increasing. This is driven by more expensive fuel, increased distribution costs and rising green taxes.
Data sources: Ofgem and the Department for Business, Energy & Industrial Strategy. RPI based on January 2010 = 100. Last updated 14th June 2019.
What Affects My Prices?
Larger users of energy, such as manufacturing organisations, pay a lower rate due to the higher consumption. However, the energy companies increase the daily standing charge to compensate for the lower rates. The following guides you through what could affect the unit price you pay:
What Can I do?
Enter, LED bulbs. Over the years, these bulbs have grown and grown in popularity, overtaking traditional lighting such as halogen bulbs. In fact, on September 1st 2018, halogen bulbs were banned across Europe to make way for a continent-wide switch over to LEDs. Halogen bulbs proved to use around five times more energy than LEDs and it’s thought that doing away with them will save more than 15m tonnes of carbon emissions a year. Businesses the world over are switching to LED lighting, and it’s not difficult to see why.
Most things in business boil down to money, so cutting down on energy costs is something that should be reviewed regularly. Switching to LEDs is an easy win as something as minor as a 20% reduction in energy costs can add the same benefit as a 5% increase in sales for business. Switching to LED lighting has the potential to reduce lighting costs by as much as 90% – a no-brainer for small businesses.
The return on investment
For many, the main argument for not switching to LED bulbs is the initial installation cost. LEDs are more expensive than other bulbs, which is often a turn-off for a small business who perhaps can’t justify the costs. It’s worth remembering however, that you will recoup your initial investment within the first few years and the lights will pay for themselves. The financial and energy savings are huge as they can last up to 25 times longer than traditional bulbs. This means lower bills and lower maintenance and replacement costs, which is not only financially friendly, but you’ll rarely need to think about replacing bulbs, making time for more important things – such as running your business.
FUNDING IS AVAILABLE FOR WOKING SME's!
If you’re really unsure about taking the plunge and facing the large upfront cost of having an LED overhaul in your office space then ThamesWey can help. We have funding grants of up to £2k to help SME’s that are based in Woking upgrade to LED Lighting. Get in contact with us to discuss whether you qualify for the SME grant funding. Contact us on 01483 545098 or email at email@example.com
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