Rising costs and energy use are hitting small businesses harder than ever, jeopardizing their survival. More than half of small businesses say soaring gas and electric bills are one of their biggest financial challenges. While large companies have the resources to absorb these costs, small businesses face thinner profit margins and fewer options. This situation is forcing business leaders to rethink their approach to managing energy spending.
As companies look for ways to cut costs and conserve energy, the importance of “Business Gas Comparison” is growing in focus. Smart energy management has become a necessity rather than an option, especially with hundreds of thousands of businesses facing charges and fluctuating rates.
High energy costs and their impact on small businesses
Small businesses rely heavily on affordable energy to keep operations running smoothly. Dramatic increases in energy bills make it difficult for them to manage operating costs while remaining competitive. Companies in energy-intensive industries such as manufacturing and food services are feeling the pinch even more severely. For example, the running costs of equipment such as tumble dryers and other appliances are rising steadily, making energy-efficient alternatives a priority.
The burden is not limited to operating costs. Rising energy prices also reduce the ability of small businesses to invest in growth. As profits are used to pay bills, less capital is available to hire employees, upgrade technology, or expand services. As a result, small businesses are not only treading water, but also struggling under the weight of energy-related expenses.
Eight main reasons why small businesses struggle
Business energy costs soar
Business energy costs have risen sharply in recent years, driven by global market volatility. For example, small business electricity prices in Northern Ireland have increased by almost 60% in just two years.
Limited opportunity to obtain a commercial gas card
Many small businesses are unable to use commercial gas cards that offer discounts and flexible payment terms, leaving them stuck with higher energy bills.
Reliance on expensive commercial energy suppliers
Small businesses often continue to choose their existing commercial energy suppliers due to lack of awareness or convenience, and missing out on opportunities to get cheaper prices.
Inefficient use of energy
Without proper energy conservation practices, many small businesses waste electricity. For example, employees taking too long to shower or inefficient equipment can unnecessarily increase energy consumption.
Lack of awareness among commercial gas suppliers
Commercial natural gas suppliers offer competitive prices, but many small businesses do not explore alternatives.
Comparing options can result in significant savings.
High costs on energy bills
Regardless of energy usage, flat charges can lead to higher bills for small businesses. More than half of businesses pay more than the average household.
lack of government support
Financial incentives such as EV charging rebates are not always widely known, leaving small businesses unaware of the potential savings.
Difficulty predicting costs
Volatility in energy markets makes it difficult for small businesses to predict costs, leaving them vulnerable to unexpected price increases.
Benefits of changing energy supplier
Changing energy suppliers can change the way a small business manages its expenses. A simple comparison of commercial natural gas suppliers and commercial energy suppliers can reveal cost-effective options. This change often lowers monthly energy bills, allowing small businesses to save money that can then be invested in other areas.
For example, switching suppliers helped a small retail business in Northern Ireland cut its bills by 30%. A direct debit payment plan with the new provider also simplifies their budgeting process. In addition, many suppliers now offer effective advice and tools to ensure that companies can reduce consumption and costs at the same time.
Smart solutions to reduce costs
There are a number of practical strategies small businesses can adopt to reduce their energy bills without compromising productivity. Making small changes in daily operations can lead to significant cost savings. Here are some practical solutions business leaders can implement to lower their bills:
- Shorten showers: Encourage employees to limit shower times to reduce water and energy consumption.
- Optimize daily tasks: Schedule energy-intensive tasks, such as running or charging equipment, during off-peak hours to take advantage of lower energy prices.
- Efficient appliances: To reduce electricity usage, upgrade older appliances with efficient alternatives like LED lighting and modern machinery.
- Monitor energy usage: Use smart meters or monitoring tools to track energy consumption patterns and identify areas for improvement.
- Educate employees: Train employees to adopt simple habits like turning off lights and unplugging devices when not in use to save energy.
| energy type | Average rate (2020) | Average rate (2024) | % Increase |
| Commercial electricity | 15p/kWh | 24p/kWh | 60% |
| commercial gas | 4p/kWh | 7p/kWh | 75% |
| Long-term charges | £90/year | £150/year | 67% |
final thoughts
Small businesses face significant challenges due to high energy costs, but solutions such as changing suppliers and adopting efficient practices can make a difference. With tools like Business Gas Compare, businesses can reduce costs and thrive despite economic pressures.
FAQ
1. How can switching energy suppliers save small businesses money?
Changing providers can result in lower rates and reduced fixed costs. For example, businesses can often save 30% on their gas and electricity bills due to better deals and efficient support.
2. What government incentives can small businesses take advantage of to save energy?
Schemes such as electric vehicle charging rebates help companies invest in sustainable energy solutions and reduce long-term costs.
3. Which devices have the greatest impact on a business’s energy costs?
Equipment such as tumble dryers, electric heaters and outdated refrigerators can significantly increase energy consumption. Switching to a high-efficiency model can drastically cut expenses.
