With energy costs and schemes frequently changing, how can businesses save thousands of pounds?

Radius has since 1990, helped businesses across the globe improve and drive growth within their organisation. This extends to creating more sustainable solutions.

Curtis Broadbent is the director of Cheshire-based Radius Energy, and he discusses how companies can save money on energy.

The spiralling cost of energy has dominated the news in the UK for the last year, alongside the number of suppliers failing - with big players in the energy industry going out of business becoming a frequent occurrence.

Soaring wholesale prices bring challenges for customers and businesses, and failing suppliers also means outstanding costs have to be shared by the rest of the industry, which can further impact bills.

To try and help the UK during this time, the government has introduced several schemes to help businesses cope. One of which is the Energy Bill Relief Scheme (EBRS) - it supports businesses and public sector organisations such as schools and hospitals by providing a discount on wholesale gas and electricity prices. But, as of 31 March 2023, the EBRS scheme will be ending.

More than 50 retail groups fear that their businesses may not survive the next 12 months because they face a sharp rise in costs when help with energy bills tails off from April. And sixty per cent of the retail businesses surveyed by FRP Advisory, the restructuring specialist, cited rising energy costs as the biggest cost pressure in the months ahead[1]. So, what can businesses do to try and curtail the astronomical energy costs?

Review your energy contracts: One of the first things business owners should be doing is reviewing their current energy contract ahead of 1st April 2023. With competition slowly coming back into the industry, there may be an opportunity to switch to a better rate and ensure the business isn't being overcharged.

Become more energy efficient: It might sound simple, but making sure staff are aware of 'best practice behaviours' when it comes to ensuring energy isn't wasted is key. For example, Radius Energy saved a sporting organisation in Ireland over £44,000 per annum (the equivalent of one month's free electricity), simply by highlighting electrical items that were on standby and should have been turned off. Businesses can also look to work with energy experts such as Radius to create a more in-depth energy management strategy.

Energy Bill Discount Scheme: In light of the EBRS ending, the Energy Bill Discount Scheme (EBDS) has been announced by the UK government. It will offer continued energy bill support for businesses until 31 March 2024 but at a reduced rate. Rates (for all eligible non-domestic customers) will be 0.697p/kWh for gas and 1.967p/kWh for electricity. To find out more, visit here

Ask an expert: Of course, energy management is a technical and often unknown entity – which is why companies such as Radius Energy are on hand to help offer business advice. Experts in this field play a vital role in making sure businesses are set up efficiently and not being overcharged. For example, Radius Energy saved a baked goods manufacturer over £100,000 (or 34%) per annum by running a tender on their energy procurement requirements.

The schemes available (such as the EBDS) are complex and businesses large and small have found it difficult to understand if they are receiving the correct support. With the help of experts – such as Radius Energy – businesses can ensure that energy costs can be managed and avoid unnecessarily high bills.

For businesses requiring support with energy management and sustainable mobility solutions, from flexible and fixed-term commercial vehicle hire and leasing to guidance about the transition to electric, contact the Radius team at +44 028 92 444 966 or visit https://www.radius.com/