Recently started your own business? Worried about rising electricity costs?
Before we give suggestions for cost-saving strategies to address this issue, we have to do a deep dive into its roots.
Plenty of factors ultimately play a role in deciding the final figure of your utility expenses.
Let’s take some time to discuss a few.
Weather
As the weather changes, so does the price of receiving electricity.
Should a hurricane, heat wave, snowstorm, or drought occur, the value of electricity goes up owing to high demand from consumers being forced to compete with the effects of these adverse conditions.
Business energy suppliers are then placed in an equally tough spot of straddling the line between customer needs and strained generation capacity.
All in all, consumers are likely to increase their energy consumption, and coupled with the increased value of electricity, in such times they are going to be faced with higher prices.
If you need a more recent image for the sake of clarity, just think back to how toilet paper prices had a massive spike at the height of the COVID-19 pandemic.
Device Usage
Before you proceed to turn off the light bulb to signal the end of the workday, you have to account for the extent to which electricity is used throughout the day.
Desktops, printers, projectors, microphones, speakers, and fax machines are only a few examples of technology that require lots of energy to be functional over the course of presentations, interviews, and so on.
However, it’s counterproductive when they’re being overcharged or not plugged out when they’re not being used.
Moreover, fridges, microwaves, and freezers, provided in pantries and lunch rooms, still need a lot of energy but may use more energy than you’re budgeting for if it is the case that they are being tested to their limits by being overstuffed and constantly opened.
Distribution Systems
If it’s going to take a longer time or complex route for the electricity to reach your office, that will be a major consideration in how your utility bill ends up being calculated.
In other words, calling or texting takes less time and, by extension, less money than choosing to send a message by means of the Pony Express or, for a more modern comparison, the post office.
Another important matter of note is that as your business carries its own operation and maintenance expenses, the same rule applies to the systems that allow consumers like yourselves to access electricity.
Due to this, persons in charge of overseeing these systems have to also carefully keep in mind costs associated with potential power generation delays that are likely to take place if they are affected, for example, by adverse weather conditions.
In addition, someone has to be hired to repair the damage caused by the weather conditions that have happened and will need to be paid for it.
Let’s not forget that their fee will be dependent on how extensive the damage to the system is, the type of damage, and the number of people needed to handle the demands of such a pressing, dangerous, and time-consuming situation.
There’s also the risk of costs relating to the frequency of electricity theft, external accidents, and on-the-job incidents.
What you should take from this is that where you choose to locate your business should be a key consideration in how you plan to proceed with handling business budgeting for utilities in the long run.
Power Plant Costs
As distribution systems come with costs, it’s the same with managing power plants.
They have to deal with construction expenses, financing expenses, maintenance expenses, and operating expenses that represent yet another set of reasons that overlap and contribute to why you end up with a certain bill.
In the end, it’s called a power grid for a reason.
Regulations
As we previously discussed above, your location has a significant impact on your electricity bills, which ties into the effects of regulations.
If the location of your business is in a regulated market, you’re likely to be hit with higher prices, whereas being based in a deregulated market features better room for competition and cheaper costs.
Geopolitics
In the event of a political crisis, such as a war or government shutdown, occurring in a country that is a major source of energy, people in other parts of the world are likely to be badly affected since its generation will be both lower and less consistent.
Political instability also has negative implications for the maintenance of supply distribution, as the conflict will spill over to how long it will take resources to reach nations in need.
Consumers often have to get used to receiving higher bills since they have to turn to alternative yet more expensive options to make it through everyday life.
For a recent example, the ongoing Russo-Ukrainian War has been linked to startling surges in oil prices.
Energy-Saving Tips
Now that we’ve discussed some key factors that contribute to electricity prices, let’s shift our focus to ways we can actually address them.
Host Sensitization/Training Sessions
To keep employees informed on how they can assist with efficient energy use, you should organize sessions to emphasize its importance and empower them to incorporate it into their work conduct by seeing it as a collective duty.
Offer Remote Work Options
If it’s not necessary that employees come into the office to get their work done, then do yourself a favor by giving them flexibility through remote work.
There are plenty of places around that suit the demands of remote work, such as Starbucks, that will allow your employees to be put at ease and focus away from the hustle and bustle of a traditional office and save on energy costs.
Putting in place virtual meetings means the kettle won’t be plugged in at the office by multiple workers frequently to keep them engaged through coffee during those long hours.
Opt for LED Lights
Are you on the hunt for sustainable energy practices? You’ve chosen the right article!
Let’s take a moment to put the spotlight on LED lights.
LED lights consume far less energy than in stark contrast to their traditional fluorescent light bulb counterparts and give off less heat, all to the benefit of far lower bills for any electricity consumer.
Perform an Energy Audit
Having an energy audit conducted will be of great benefit to you by allowing you to be alerted to your company’s energy consumption patterns.
With the patterns being thoroughly assessed and documented, it will be easier for you to develop key insights on areas in need of improvement and implement plans for more efficient energy usage going forward.
Go Paperless
As we pointed out earlier, office equipment, such as fax machines and printers, requires heavy amounts of energy usage, leading to high electricity bills.
You can effectively decrease printing costs and leave a positive impact on the environment by choosing to store files on a shared drive instead of allowing them to be made available to workers from anywhere.
Unplug Devices When Not In Use
This tip may seem an obvious one to include, but it often ends up being ignored, forgotten, or overlooked in everyday life, especially when it comes to the matter of the workplace.
Set an example for future and current employees by making a note to unplug all devices when you are no longer using them and politely encouraging or reminding them to do so if the situation calls for it.
You can also take a step further by emphasizing the benefits of shutting down their devices rather than setting them to sleep mode since doing the latter will still waste energy even if it is at a reduced level.
Keep the Heat in/Make Use of Windows
Air conditioning takes up a lot of energy and, in turn, will add a lot to the electricity bill.
Instead of having to figure out your way out of that inconvenience, you can simply advise employees to let the windows and doors remain closed in the face of colder times over the course of the work day.
Besides the previous recommendation, windows can also prove to be helpful in reducing the electricity bill by providing access to direct sunlight rather than unnecessary usage of light bulbs in the morning.
Lower the Device Brightness
Apart from the cost of your eyesight, keeping the intensity of the brightness levels on your digital devices high will increase electricity bills, as such a level of intensity will wear out the battery faster, requiring it to be charged more frequently.
The Conclusion?
There are a lot of ways your business can save on electricity bills in the face of several contributing factors.
We encourage you to put your best foot forward and heed our recommendations as you embark on your career journey.
Keep moving forward!
