The business energy industry is certainly a complex and sometimes misunderstood one. And with many technical aspects to understand and jargon, there can be a lot of confusion and mis-information. Leading to the spread of myths and misconceptions that result in many not knowing what is fact or fiction. In this blog we will delve into the most common business energy myths and help decipher what is true and what isn’t, so you can have a clearer understanding of business energy and what you are paying for.   Myth 1: Switching business energy suppliers is time consuming and complicated One of the biggest myths in the business energy industry is that switching suppliers is a long, complicated process. Many believe that it will take up a lot of their valuable time when in reality, it can be done quickly and easily. With an increase in online tools and comparison websites available, businesses now have the resources to compare energy plans and switch in a matter of minutes. And with a few simple details and meter readings, you can ensure you are getting the best deal for your energy needs. It is also worth noting that switching suppliers does not require any major changes or installations in your business premises. In fact, everything remains the same from your perspective as a customer, except for a potential decrease in your energy bills. If you are interested in switching business energy suppliers and would like to know more about the services we provide, speak to an energy expert of our team for a quote.   Myth 2: All business energy suppliers are the same Another common misconception is that all business energy suppliers offer the same services and prices. This could not be further from the truth. Business energy suppliers vary greatly in terms of their pricing, customer service, and renewable energy options. It’s important to research and compare different suppliers to find the one that best fits your business’s needs and requirements.   Myth 3: Renewable energy is too expensive for businesses Many businesses believe that switching to renewable energy sources will result in a significant increase in their energy bills. However, this myth has been debunked as renewable energy prices have become increasingly competitive with traditional fossil fuel options. In fact, investing in renewable energy can actually save businesses money in the long run due to lower operating costs and potential tax incentives.   Myth 4: Energy efficiency is only for large corporations Some may believe that implementing energy efficiency measures is only feasible for large corporations with big budgets. However, even small businesses can benefit from simple changes such as switching to LED lights or installing smart energy meters. These changes can significantly decrease energy consumption and save businesses money on their energy bills.   Myth 5: Businesses have no control over their energy usage Many believe that once they sign a contract with an energy supplier, they have no control over how much energy they use or the cost of their bills. However, there are many ways for businesses to actively manage and control their energy usage. This includes implementing energy-efficient practices, monitoring energy consumption through smart meters, and negotiating with suppliers for better rates.   Myth 6: Energy suppliers can cut off your supply without warning There is a common fear that if businesses miss a payment or fall behind on their bills, their energy supplier will immediately cut off their supply without any notice. However, this is not the case. Suppliers are required to provide a warning and give businesses time to make payments before taking any action. At D-ENERGi we will work with you to ensure that you can cover your payments, and for any reason you may not be able to, our team will support you with the implementation of an affordable payment plan.   Myth 7: Fixed price business energy plans are always the best option Fixed price business energy plans may seem like a good deal at first glance as they offer a set price for a certain period of time. However, these plans can also come with hidden fees and penalties for early termination. It’s important for businesses to carefully read the terms and conditions of their energy plans before committing to a fixed rate. One thing to note is that with every business energy supplier and every contract, different rules apply. If you are a business energy customer, it is important to pay attention to the terms and conditions of your own contract and ensure that you understand everything that is included with your energy supplier. Speak to our friendly experts to get a quick and tailored quote for your business.

While Jeremy Hunt did not mention the EBDS Scheme in his Spring Budget announcement, it is confirmed that the support scheme ends 31st March 2024. For small businesses utilising the support of the Energy Bill Discount Scheme may feel slightly left in the dark now, as no alternative or additional support has been mentioned by the government. So what now?   Costs of running a small business in 2024 Although there’s certainly mixed opinions regarding the scheme and the genuine support that it did or could offer SMEs, having little to no other options leaves many small businesses wondering about the future. Despite predictions for the energy market looking better for 2024, many small businesses will still be dealing with the financial fallout of the energy crisis and of course the other issue of the cost of living crisis. Ensuring staff are paid enough to cover their own bills, business rents increasing and difficulties in a variety of sectors, there will continue to be concern about finances and staying afloat for small business owners in 2024.   A desire for tailored support for small businesses While there is not a single scheme or support programme set to succeed the EBDS Scheme as of yet, there’s some discussions surrounding what SMEs truly desire from the government. Research done within the industry has highlighted that small business owners wish for the government to acknowledge their want for energy support that is tailored to their unique needs, rather than schemes that many do not deem to be adequate. Microbusinesses especially, have called for bespoke assistance from the government for those that have been most affected by rising energy prices. And many are calling for regular winter support to be introduced, making sure that each year businesses are thoroughly supported financially to survive the often challenging months of winter and the extra costs the cold weather presents businesses.   What can small businesses do now? However, since there is yet to be any response or correspondence from the government regarding these concerns and desires, here are some examples of support you can currently access and will be able to access beyond the end of the EBDS Scheme. The best method of support if you can not afford to pay your current energy bill is to contact your business energy supplier and negotiate a payment arrangement that works for your business and them. At D-ENERGi our team of customer service representatives are on hand to offer the best possible advice and guidance for all our business customers. Alternatively support from Citizens Advice and Ofgem may help if you are struggling with what to do next. From understanding how to switch business energy suppliers to knowing if you are overpaying for electricity, these organisations offer some of the best advice for businesses.   Cutting your energy consumption And while we await the government’s offers of more assistance through a new scheme or financial plan, you can also make a difference by actively reducing your energy usage to maximise your savings. From better energy management practices to improving your energy efficiency, there are many small steps you can take for a positive impact on your business. Our blog explores a wide range of these topics. Including the best advice for businesses wanting to cut energy costs and how to cut your energy consumption.   To conclude: While we remain hopeful that the government will continue to offer support for small businesses with their energy, we understand that from the latest budget, much more focus is being placed on inflation. Meaning less attention may be given to the energy market over the next year. Using our advice, we suggest that all small businesses worried about the end of their government-backed support to reach out for more information from our customer support teams. We can discuss next steps and future payments, helping to ensure you are on the right tariff and are able to pay your energy bills.

While it’s true that all small businesses should pay close attention to their energy consumption in order to keep on top of it and to ensure their energy costs do not exceed unmanageable highs, there are particular types of small businesses that use more energy than others. Which, we have highlighted in this blog and offered our expert advice for these specific businesses and industries. With our best tips on how to manage consumption with industry specific notes on cutting consumption.   Small restaurants and cafés   With such high intensity equipment, from industrial-sized ovens, to fridges, freezers, and food preparation tools, it is no surprise that restaurants and cafés are some of the highest energy consuming businesses. While chains and large restaurant businesses may have the cash flow to manage rising costs, smaller businesses such as family-owned restaurants and independent cafés may struggle.   And in recent years, examples of this have been seen throughout the country. With the industry taking a big hit due to the recent energy crisis. Walking through highstreets it is clear to see that many long-standing food businesses have taken a hit, either choosing to open only on weekends or closing indefinitely.   In order to save money in areas of the business, where possible, following these tips will help cut down energy consumption: Clean and service all cooking and prep equipment regularly to ensure it is operating to its full potential. Turn off the equipment when not in use. For example, your baking ovens. Once used to cook your fresh loaves and cakes in the early morning, switch them off and do not turn them back on again until the next day. Keep your thermostat at a constant temperature. Even turning this down by 1 degree could save you hundreds in energy bills. Ensure that any warm or hot equipment is kept away from cooling appliances like fridges. The warmth of the ovens and the heaters will only make the fridges work harder to stay cool.   Hair salons   Another industry that undoubtedly uses a lot of energy is the hair and beauty industry. With so many tools and a constant flow of customers through the door, the demand for electricity, especially, is high. And while long hours and busy periods means tools like hair dryers, straighteners, curling irons, are switched on and used frequently, some of the highest demand comes from the need for a constant supply of hot water. From washing hair to keeping towels fresh with on-site laundry facilities, all very important for making sure that not only is the service the best it can be, but industry standards are met. The following tips have the ability to help hair salon owners keep energy consumption down and cut costs:  Consider investing in low-flow nozzles for your salon’s sinks and taps to minimise the amount of hot water used on a daily basis.  Avoid using space heaters, where possible. Research indicates that the use of space heaters and similar equipment contributes to some of the highest amounts of energy used in the service industry. If you’re struggling to keep your premises warm during winter months without a space heater, consider what may be causing this and carry out an energy audit of your salon.  Consider switching to low-power settings when operating hair tools, especially tools like hair dryers.  Avoid overloading electrical power sockets and extension cables. Only plug in the tools you need at each given time.   Boutique hotels and B&Bs   With operations and staff on-site from day to night, hotels and B&Bs are another of the highest energy consuming businesses in the UK. Having to provide a high level of service, making sure hot water is constantly available to guests, lighting can be used in all rooms, hot food can be served, and laundry facilities can be operated by staff. There’s so much that goes into running these businesses that requires a huge amount of electricity.  One of the best, most cost-effective and simplest ways a hotel or B&B can cut their energy cost is to reduce the use of lighting and source natural light, where possible. This could simply mean removing old netted curtains or shades and allowing the sunlight to light communal areas and rooms that are not being used.  Set timers on HVAC units, and encourage guests to keep these at a regular temperature. Switch to energy efficient devices in guest rooms. Update old lighting with LED light bulbs.  Use motion sensor lighting in communal areas and bathrooms so guests can and staff do not leave lights on unnecessarily.   For more support and guidance to keep your small business’ energy costs down, consider contacting your business energy supplier and discuss your concerns. At D-ENERGi our friendly support team is always happy to help our business energy customers. Considering ways we can support your business, deciding upon payment plans or reviewing bills and usage. What’s more, if you would like greater control over your energy consumption, we are supporting small businesses with the smart meter roll out scheme, click here to find out more.  Contact D-ENERGi today for more information about your energy bills or to consider switching to us to lower your business energy bills.

As we head into 2024, it’s time to look ahead and see what research predicts may be in store for us this year when it comes to business energy predictions. The good news is that new research on this front predicts that there will be a decrease in the cost of energy for businesses in 2024. This decrease will be, for the most part, as a result of the likelihood of a fall in the wholesale energy price. From September 2023 to the start of January, the wholesale price of energy has seen figures drop to a point where they are 47% lower. According to industry analysts, this fall is mainly attributed to very strong storage reserves, favourable patterns in the weather and improved supply accessibility. And whilst these same analysts may not be able to fully predict the future, it is very clear that these are all factors that will help to ride-out any shocks to the system that may happen and that will result in a market that is less volatile.   Third party costs Unfortunately, the predictions for third party costs, distribution and transition costs are that they are likely to remain at levels that are much higher when compared with any historical data. This means that any changes, even small ones, will have an impact. All in all, what this means for businesses is that whilst the total cost will fall in 2024 for their business energy usage, third party costs will be higher and ultimately bills will still be higher than they were before the price crisis.   Balancing Services Use of System (BSUoS) The fixed tariff for summer 2024 (April to September) was shared back in April 2023, together with the draft winter 2024 tariff. From this, we already know that the projected costs of BSUoS will be reduced over the coming year   Contracts for Difference (CfD) The Levy for CfD has had some significant fluctuations, which were to be expected. However, due to a drop in wholesale energy prices, the average CfD forecast shows a price increase; although predicting further into the future this is expected to fall in 2024/25. Moving further into the year There may be a glimmer of hope for business energy users as we look further into the future where pricing is concerned. Since April and the last TPC Guide, there has been an emergence of the Energy Bills Discount Scheme which should start having an impact. Additionally, the forthcoming review from Ofgem with regard to the non-domestic supply market is being seen as a possible turning point. This, however, will not take place until the autumn. The expectation is that the new Autumn Third Party Costs Guide will outline an accelerated pace of modifications and some significant code reviews. The hope is that whilst this may not have much of an impact in 2024, if we look towards 2024/2025 it is possible to predict that a number of third party costs should experience a decrease. There may also be a range of fluctuations and possible changes as well as some increase to TPCs.   For the latest energy tariffs, do get in touch with D-ENERGi for the expertise and experience. For more energy saving tips and advice on how to improve the energy efficiency of your business premises, check out more of our D-ENERGi blogs.