Costly energy bills forcing businesses to close

Energy suppliers are forcing more businesses than ever to shut their doors over unpaid bills. According to data from advisory group Mazars, 20 businesses over the last four months have been driven to close by suppliers – a 186% spike from this time last year. This can happen if an energy supplier is owed money by a business, they have the power to move on with an insolvency petition to shut the businesses down. The threshold to close a business is also much lower than for an individual, with businesses indebted £750 under threat of closure by a supplier versus £5000 for an indebted individual. Even with the announced six-month support package for businesses aimed at slashing energy bills in half, there are still fears that companies will be left to their own devices in the spring.

Across the board, the energy crisis is already eating into a majority of businesses’ profit margins, with SMEs across the country facing an average bill increase of over 250% in the last year alone, according to Cornwall Insight. In addition, a report by the Federation of Small Business found that 53% of small businesses will stagnate, decline or fold in the next 12 months. This is even more concerning when you consider that 53% of SMEs in the UK are not doing anything to monitor their energy efficiency, and are likely spending far more than they may need to on energy costs. Britain’s leading sustainability experts, SaveMoneyCutCarbon, explain that shopping around and switching tariffs to reduce energy bills has become obsolete.

The British Chambers of Commerce project that less than half (43%) of UK firms are expecting profitability in the next 12 months, whilst 1-in-4 hospitality and leisure businesses fear closing this year due to the inability to afford energy costs, according to eEnergy. In the wake of this setback, a new study from SaveMoneyCutCarbon has found that over half (51%) of employers in the UK still don’t know where or how to start reducing their carbon emissions. This is supported by research from Ecologi, which found that 42% of SME owners in the UK believe that it’s important to be sustainable, but struggle because of a lack of guidance.

In a pivotal moment for businesses across the nation, the experts at SaveMoneyCutCarbon have compiled a list of the top green upgrades and strategies that could stem the tide of rising costs for businesses, all from within the workplace – working to keep staff.

Conduct an Energy and Water Efficiency Audit:
Reducing expenditure is a key concern for any business – and minimising energy and water consumption can dramatically reduce costs. An energy and water audit from SaveMoneyCutCarbon shows you where you can save – and how long the payback will take. An energy and water audit can deliver a full report covering all areas of water and energy consumption, assessment of generation and renewables across the building, identification of opportunities that offer the quickest paybacks, investment-ready proposals of retrofit solutions, indicative savings and costs for larger projects, driving a further detailed investigation.

LED Lighting:
Converting to LED lighting is simply the most efficient and best light-quality solution for the office, and could help save up to 90% on energy as well as reduce your maintenance costs. It provides flicker free, natural lighting that has flexible controls with motion sensing and daylight dimming.

Infrared Panel Heaters:
Infrared panel heaters are maintenance-free and simple to install – and up to 60% more energy efficient than conventional convection heating. No plumbing is needed – just a power source – and they can even be fitted in the bathroom and other damp environments.

Smart Plugs:
With a Smart Plug, it is possible to regulate when your electricity is running and which areas use it most. You can set routines for your electronics to turn on only when they’re needed, and some even turn your devices off and on depending on whether you’re in the office or not. You can adjust the timings so it is only on for specific time periods – and is all controllable through your smartphone, or with your voice.

Eco Hand Dryers:
Replacing paper towels with eco hand dryers in the bathroom is an effective way to save thousands on what is normally spent in purchase, cleaning, maintenance and disposal. Paper towels are rarely recycled so replacing them could cut carbon emissions by up to 79%.

Electronic Basin Taps:
Currently, 4% of the UK’s energy usage is used pumping and processing water used every day across businesses. Electronic Basin Taps can reduce water consumption by up to 70%. They have a temperate control sensor that detects hand movement, so water only runs when it’s needed.

Carbon Mentor Scheme:
SaveMoneyCutCarbon, offers a unique ‘Carbon Mentor’ scheme, with hopes to help businesses take the first step in truly making a difference amidst the climate crisis. This service includes a tailored strategy created specifically for carbon reduction and reducing energy bills.