7 (Not so) Secret Ways to Save on Electric Bills for Small Business

Many small business owners consider the cost of electricity as fixed and do not pay much attention to it. They receive a monthly bill in the mail, make a payment and move on with their daily business. For some, even if they want to do something about it, they feel helpless thinking that they do not have many options to save on electricity, other than to cut the usage.

While this may have been true in the past, many options have opened up recently that can help small business owners save money on their electric bills. Some of the options are driven by the elimination of monopoly and rise of competitors. Companies such as commercial electricity suppliers British Gas have been very proactive in helping business owners with ideas and presenting them with alternatives that can be tailored for specific situations.

Based on our work with several small business owners we have come up with a number of ideas you can look into to save on electric bills. Some are obvious, such as reducing the usage, while others require some effort on your part. With some education and ground work you can cut down your electric bills by 10-20%. Listed below is a compilation of ideas:

1. Reduce electricity usage. This is so obvious that it may not even be worth mentioning it. However, many business owners do not pay enough attention to this. You can turn off lights during off-hours, buy energy efficient bulbs, perform regular maintenance on appliances and so on to reduce the use of electricity and bill.
2. Conduct energy audit. This is tied to the earlier bullet. Many utility providers can conduct a thorough audit on the energy usage of your business and provide suggestions on what you can do reduce the usage. The audit typically includes looking for leaks, checking appliances, monitoring usage of electricity throughout the day, etc.
3. Read your bill. It sounds funny, but how many times have you looked at your electric bill beyond the total amount and due date? Do you understand how you are being charged for electricity usage? Do you know if there are different rates for different times of the day? Just understanding various sections of the bill can open up saving opportunities.
4. Provide actual meter reading. Most electric providers do not perform actual meter reading every month. The meter reading is costly for them. They estimate your electricity use for the month based on historical trends and adjust it when actual meter reading is performed. This can lead to errors and overcharges. Some utility companies let you call in with actual meter reading. See if your provider allows this.
5. Talk to your utility provider for ideas. As a result of increased competition many utility providers are open to providing suggestions to reduce electricity cost for their customers. Many of them provide useful guides and tools for businesses as well as run a hotline managed by experts who can guide you through cost saving ideas.
6. Get quotes. As I mentioned earlier the governments have opened up the utility business to competition to eliminate monopolies. This has resulted in more competitors and lower cost in those markets. Check if there are multiple utility providers in your service area and get quotes from them for saving opportunities.
7. Explore alternate energy sources. Depending on where you live you may be able to save money by replacing electric appliances with those running on natural gas or some other energy source. By looking into alternate sources of energy you may be able to save money in the long-term.

As you can see, there are a number of options available that can help you save on electric bills. It requires some pre-work and consultation with experts. Do let us know in the comments below if you have come across additional ideas.