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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.
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Value Added Tax (VAT) is a tax that is applied to most goods and services in the UK, including business energy bills. The standard rate of VAT is 20%, but there are a number of discounts and exemptions available to businesses, which can help to reduce the amount of VAT you pay. Not only is this a useful piece of information for small businesses to know, it may also mean more money going back into your business rather than to the dreaded tax man!
VAT on electricity for businesses
Much like any other goods or services you access as a business, you will pay VAT. The current standard rate of VAT is 20%. However, since the government wants to offer as much incentive to businesses as possible to reduce their energy consumption and improve their energy efficiency, such discounts and exemptions of VAT payments can be applied. This is of course, subject to eligibility.
If you are eligible for a discount or exemption on your electricity VAT, this should be applied automatically by your supplier. However, you may need to confirm this at the time of approval. Ensuring that all parties are aware of the reduced fee. Keep an eye out on your bills for what you are paying. For more help understanding your bill click here.
Discounts and exemptions available to businesses from the UK government
The Climate Change Levy (CCL) exemption: This exemption applies to businesses that use certain types of renewable energy, such as solar power, wind power, and biomass.
Fuel Duty: If you use a generator to power your business, you may be able to reclaim some of the Fuel Duty that you pay on the fuel you use.
The De Minimis supply: If your business uses less than a certain amount of energy each year, you may be eligible for a reduced rate of VAT of 5%. The de minimis limits are 1,000 kWh of electricity per month or 4,397 kWh of gas per month.
Signing a CCA (Climate Change Agreement)
Signing a Climate Change Agreement (CCA) as a UK business comes with both obligations and benefits, primarily in the form of potential financial savings and reduced carbon footprint. Here’s a breakdown:
What is a CCA?
A CCA is a voluntary agreement between your business and the Environment Agency. In exchange for meeting specific energy efficiency and carbon reduction targets, you receive a discount on the Climate Change Levy (CCL), a tax added to your electricity and fuel bills.
By signing a CCA you are agreeing to making improvements to the energy efficiency of your business, reducing your energy consumption. This provides you with the opportunity to receive discounts of up to 90%.
It is important to remember that discounts and eligibility for discounts is always subject to change as per the government’s guidelines. To ensure you are always up to date with the latest information regarding discounts and exemptions on your business energy bills, read the GOV.UK site.
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.
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Just about everything is becoming smart. From home devices to TVs, doorbells, and even vacuum cleaners. With the technology available to make any typical domestic and commercial appliance ‘smart’, even the tools we use to control heat and lighting have become smart. Now we are seeing the rise of smart lighting, both in homes and in businesses. With the use of smart light bulbs. But what benefits do they provide and are they really the smartest option when it comes to saving you money?
How to utilise smart lighting in workplaces
In order to get the most out of smart lighting, it’s a good idea to think about how best to apply this to your business. But first, consider how exactly does smart lighting work? And what makes it different to traditional bulbs like LEDs?
Smart bulbs are actually a variation of an LED bulb. They are simply internet-connected. Making them a much more customisable lighting option. Smart bulbs can be accessed both manually but also by mobile devices via brand applications. These apps allow users to customise their lighting usage down to very specific requirements, such as the colour of the bulb, brightness, timing of the light being on or off. With accessibility via an app, this also means that lighting throughout the building, wherever it may be, can be controlled off-site.
The benefits of smart lighting for business
For businesses the option to switch bulbs to smart bulbs provides a number of benefits.
From gaining even greater control over the usage of lighting, to controlling the intensity of lighting and creating the perfect working environment.
For businesses looking to cut back on their energy consumption, smart bulbs allow time scheduling and the ability to control lighting from outside the room. So, on one of those days where you’re rushing to get home from work and forget to switch off the lights, you can simply access the bulb via the mobile app and turn off the lights, from home, the supermarket, the kids’ school or just outside the building. Plus, being able to schedule your lighting use means when the lights don’t need to be on or very bright, you can control this, helping to minimise energy waste and cut back your business energy costs.
What’s more, with this added control you can create a working environment that is comfortable but encourages productivity for your employees. Many studies into the working environment and how lighting can impact a person’s productivity levels have been conducted. With results highlighting that lighting that matches the typical movement of the sun throughout the day, from brightness to positioning, has a positive effect on a person’s ability to focus. With many employees found to struggle when working in very brightly lit environments.
Factors to consider when going smart
As with all IoT products, smart bulbs do come with some concerns. Particularly if you consider the security of these technologies. While we continue to see developments within the security of new IoT devices, it is vital that you pay attention to the vulnerabilities of your chosen smart lighting solution. Considering how it may put your business at risk of attacks. Some good ways to avoid putting your business at risk are to do your research and to keep your smart bulbs and other smart devices connected to a separate network that would not allow access to any of your business’ financial and sensitive data.
Switching to smart LED light bulbs isn’t essential but in conclusion it can certainly offer your business some benefits and give you greater control over your energy usage. Meanwhile, for those who are yet to be convinced by smart devices, simply switching traditional bulbs to standard LED bulbs is an excellent way to improve the energy efficiency of your business and cut your energy costs.
For more smart devices, why not consider a business smart meter? Monitor your energy consumption, spending and more in a simple and easy-to-use way. 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.
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In today’s environmentally conscious world, consumers, investors, and employees are increasingly prioritising sustainability when making decisions. As a result, businesses that can effectively position themselves as leaders in sustainability can gain a significant competitive advantage.
There are several ways a company can implement sustainability strategies, one of which is energy efficiency. Taking a positively sustainable approach to your business’ energy usage is a brilliant way to reduce energy consumption, improve the carbon footprint, maintain a positive reputation, but also benefit from a reduction in energy bills, saving the business money too. In this blog we explain the reasons why positioning your business as a leader in sustainability is a good thing and the benefits this provides.
Key strategies for positioning your business as a leader in sustainability:
Embed sustainability into your core values and mission statement. Make sustainability a fundamental principle that guides all your business decisions. This will demonstrate your genuine commitment to environmental and social responsibility.
Set ambitious and measurable sustainability goals. Clearly define your sustainability objectives and establish concrete targets for reducing your carbon footprint, conserving resources, and promoting social equity. Track your progress regularly and communicate your achievements to stakeholders.
Adopt sustainable business practices across all operations. Implement energy-efficient practices, reduce waste, source sustainable materials, and minimise your environmental impact throughout your value chain.
The benefits of being a sustainability leader in your industry
By working to establish your business as a sustainability leader in your industry, not only will you work to improve the energy efficiency of your business and help to reduce your impact on the environment, but your reputation will benefit also. Some of the many benefits of prioritising your sustainability strategy can be found below:
Enhanced Brand Reputation and Customer Loyalty – Consumers have been found to be increasingly seeking out companies that align with their values, particularly those that prioritise sustainability. By demonstrating a commitment to environmental and social responsibility, businesses can enhance their brand reputation, attract environmentally conscious customers, and nurture long-term customer loyalty.
Improve your company’s impact on the environment – Ultimately one of the key goals of pushing sustainability principles forward is to improve the impact of which organisations and individuals have on the environment. Saving the planet and working to reduce harmful emissions is imperative for the preservation of future generations. By being a leader in your industry, you can encourage your competitors and partners to follow suit. Rather than competing with one another, this is a great opportunity for businesses to come together with a shared goal.
Improved financial performance – Sustainability practices can lead to significant cost savings, particularly through reduced energy consumption, waste management, and resource utilisation. These cost reductions can directly translate into improved profitability and financial performance. A great opportunity for businesses to help the environment whilst cutting costs and making greater profits.
Strengthen relationships with investors and suppliers – Those with a key interest in your business will be much more likely to place greater trust within the scalability and longevity of your business if you begin to place yourself as a leader in sustainability now rather than later. With an expectation on businesses to make big changes before it’s too late, investors, partners, and suppliers, are paying closer attention to those businesses who are actively making a change.
As sustainability leaders, businesses can play a significant role in shaping a more sustainable future for the planet and society. By demonstrating best practices and advocating for sustainable policies, businesses can help mitigate climate change, conserve resources, and promote social equity. This can be done in a number of ways, but some great places to start are to consider renewable energy supplies and look at ways to reduce your energy usage, and carbon emissions. For more support of this, our team can provide the advice and details of our services you may need to access renewable energy sources, and take greater control over your energy usage (smart meter roll-out).
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