How to Cut Business Electricity Costs
Business electricity costs can stack up fast, especially when usage peaks or contracts are not reviewed. Discover some tried and tested ways to reduce your bills when it comes to renewing your contract.
Business electricity costs can stack up fast, especially when usage peaks or contracts are not reviewed. Discover some tried and tested ways to reduce your bills when it comes to renewing your contract.
If you’re here, you’re likely looking for practical ways to cut business electricity costs or get more control when it comes to renewing your energy contract. And you’re far from alone.
Across the UK, rising wholesale gas prices pushed business electricity prices to levels not seen before. According to the Office for National Statistics, the average price paid by non-domestic users jumped from 14.81p per kWh in early 2021 to 25.97p per kWh at the end of 2024. While prices have eased slightly from their peak, they remain around 75% higher than before the spike.
For energy-intensive industries, the impact has been severe. ONS data shows that output across sectors such as paper, chemicals and basic metals has dropped by around one third since 2021, reaching the lowest level in 35 years. In a nutshell, rising energy costs are affecting businesses of every size, not just heavy industry.
So, if your bills feel higher than they should, or your contract renewal is coming up, now is the time to explore ways to reduce usage, negotiate better rates and protect your cashflow. Read on for some smarter ways to cut business electricity costs and take a giant leap towards becoming a greener company.
Small operational changes often have the biggest impact on business electricity costs, because they repeat daily. These suggestions require no expensive upgrades, just consistent habits.
Computers, monitors, chargers and printers continue to draw power even when they appear to be idle. Multiply that standby usage across a full office, and the cost becomes noticeable.
Creating a shutdown checklist for the last person to leave ensures everything is fully switched off rather than left on standby.
LED lighting uses far less electricity and lasts longer. The biggest saving to business electricity costs comes from zoning lights so that only the areas in use are lit. Corridors, reception spaces and meeting rooms are often fully lit for hours with nobody in them. Motion sensors or simple timer settings can reduce that waste without changing the way people work.
Heating and cooling systems are often set and forgotten. Even a slight reduction in thermostat temperature across the building can have a noticeable impact on monthly business electricity costs. Use timers so systems only run during working hours. There is no financial benefit in heating an empty workspace overnight.
Smart thermostats make this even easier. Scottish Power states that using one effectively can reduce energy costs by around 20%, with many models available for around £160 to £200. The more you use the scheduling and temperature controls, the more you stand to save.
Simple layout changes reduce the number of artificial lights needed during the day.
Positioning desks nearer to windows and using glass partitions where possible allows natural light to reach more of the workspace.
Estimated billing can lead to overpaying. Submitting monthly meter readings ensures you’re billed correctly and helps you see whether your efficiency changes are making a difference.
These efficiency habits take minutes to implement and remove waste across your building. However, the tariff your business is on will always have the biggest influence on your total cost.
Many UK businesses only review their tariff once a year, often at the last minute. Suppliers recognise this and default to higher rates when there is no confirmed agreement. The key to ensuring you minimise business electricity costs is to consider the following:
Out-of-contract rates can be significantly more expensive. They apply when a business has not agreed on a new tariff before the previous contract ends. Reviewing early keeps you in control of pricing.
When you plan ahead, you have the time to compare business electricity prices properly, explore the market and avoid rushed decisions.
The unit rate matters, but so do standing charges, contract length and minimum usage thresholds. A tariff that looks cheap on paper can cost more overall once these elements are factored in.
When suppliers have real usage figures, they quote more competitively. It shows you understand your consumption profile and positions you more strongly when negotiating.
Energy markets are complex, and prices change frequently. At Green Light Consultancy Group, we handle supplier communication, contract comparison and business electricity cost analysis. We manage the entire switch so you save time, avoid admin and secure the tariff that works for your business. Get a quote today.
You cannot control energy market volatility, but you can control the contract you choose and the usage within your building. Businesses that approach contract renewal proactively benefit the most.
You should only pay for the electricity you use, at the best rate available.
If you want support with business electricity contract renewal or tariff switching, we can help. Our team are here to identify opportunities to cut business electricity costs, negotiate competitive business electricity rates and manage the switch from start to finish.
