Climate change and sustainability are high on the agenda in 2022, which means more and more businesses are going to be held to account – and this will have an effect on your business energy quote too.
Here is the D-ENERGi team’s round-up of the changes businesses can expect to see this year in regards to carbon and energy reporting.
Changes to the UK Emissions Trading Scheme (ETS) cap
The UK’s ETS was launched in 2021 as a replacement for the EU ETS which the UK left when it left the EU. The ETS places a cost against carbon pollution in order to encourage polluters to reduce the amount of their emitted greenhouse gases.
ESOS to potentially be extended to medium-sized companies
The UK government recently announced it would be shaking up the Energy Savings Opportunity Scheme (ESOS) in a bid to increase the uptake of energy efficiency measures and improve the quality of audits.
It is also aiming for businesses to include an assessment of actions needed for them to achieve net-zero by 2050 as a recommendation.
Mandatory TCFD for large companies from 6th of April 2022
Recommendations from the Task Force on Climate-Related Financial Disclosures (TCFD) means that over 1300 of the UK’s largest companies and financial institutions will have to start disclosing their climate-related financial information from the 6th of April.
Performance-based energy ratings for larger buildings to come into force
The UK government is currently consulting on the use of a framework for the rating of carbon and energy performance of commercial buildings, which if passed means that if you own or are the sole tenant of a large building you may be required to rate the energy performance of the building as it is in-use.
Widening of scope of the SECR
Streamlined Energy and Carbon Reporting (SECR) originally became law in 2019, but the UK government is considering widening its scope in order to drive greater climate change action ahead of the target date for Net Zero carbon.
There is some indication that one change they may implement concerns reporting on the scope of emissions. At the moment, SECR focuses solely on Scope 1 and 2 emissions – which may affect your business electricity quote – but some businesses are choosing to report on their Scope 3 emissions voluntarily too. It is likely that Scope 3 emission reporting will become mandatory in the future as the associated emissions make up the bulk of emissions from most large companies.
Here at D-ENERGi we aim to provide a real alternative to the big five energy suppliers, by offering the most competitive business electricity and business gas quotes in the UK.
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While the weather is relatively mild at the moment, it can get colder at any minute, so preparing for the next cold snap is always advisable. Follow our calendar timeline, to effectively manage your business gas rates over winter – and stay vigilant:
October
Report on your greenhouse gas emissions as part of your Directors report, as dictated in the Governments advice on greenhouse gas emissions
Remember that the clocks go back in October, so make sure you adjust your heating and lighting controls accordingly
Look back at your previous business gas bills to see if there are any patterns as to when your business energy use starts to rise in the winter
Conduct an energy-saving audit of your business, and communicate the results of this audit to your employees
November
As it starts getting dark earlier, make sure you turn off lights and other appliances when you leave your business premises
Ensure that your business water and other supply pipes are well insulated, to protect them when the weather gets icy
December
Check your heating settings to make sure they are not set too high. Every 1 degree of overheating can cause your business energy bills to rise by 8%
If your business is closing over the Christmas holidays, then make sure you notify your employees in advance and communicate your updated energy-saving policy
January
Adjust your heating settings before your employees return to work so that they are warm and comfortable when they return
Display a list of New Year energy-saving resolutions that you are undertaking as a business, and reward those employees who display energy-saving behaviour
February
Ensure your business is prepared to deal with prolonged freezing conditions and heavy snow – make sure you have a cold weather policy and that your employees are all aware of it
Make sure your working environment is well-lit and comfortable, as this will boost both your employees and your customers through the typically gloomy winter months
Ensure parking and customer facilities are still accessible and safe in cold weather
Ensure signage is visible in low light and bad weather
March
Clocks go forward in March, so you should adjust your heating and lighting controls accordingly
Review how your winter energy-saving measures have performed, and make tweaks to them to help improve your performance
Make a note of what you have learned this winter, and put a plan in place for next winter
Get in touch with the team at D-ENERGi if you feel your existing business gas supplier is charging you too much – we can scan the market for you to see if we can find you a better deal.
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During the winter months, business and domestic users tend to use much more energy, including half hourly electricity. To manage this demand, the National Grid uses Triads to encourage businesses to reduce their energy consumption at peak times.
If your business is reliant on half hourly electricity prices then it is important to understand Triads and how they work, as they can have a huge impact on your electricity bill.
What are Triads in electricity?
The National Grid uses Triads to calculate how much half-hourly metered businesses will pay for their energy use over the winter months.
Triads are the name for the three half-hour periods during the winter that tend to see the most energy usage. They can happen on any day from the 1st of November to the end of February, however, they must be at least 10 days apart so that they don’t fall on consecutive days.
They usually also take place between 5 pm and 6 pm as this tends to be when energy consumption peaks for both domestic and business users – but Triads can sometimes fall outside of this window.
How do electricity Traids affect business energy bills?
Electricity Triads only affect businesses who use half-hourly electricity, which tends to be businesses that are of medium or large size.
One of the most significant costs these businesses will see on their energy bills – aside from commodity costs – is the Transmission Network Use of System (TNUoS) charge that is paid to maintain the electricity transmission system in the UK.
If your business receives half-hourly electricity bills, then your total TNUoS charge for the following year is calculated based on the amount of energy your business uses in the three half-hour Triad periods.
So, if your business tends to use a lot of electricity, ensuring you optimise your usage during the three Triad periods can make a huge difference to your annual spend. The more you can reduce your electricity consumption during the Triad periods, the lower your TNUoS charges will be for the rest of the year.
How can you reduce your Triad-related business electricity costs?
Despite the uncertainty, there is over exactly when Triads occur, there are certain things you can do to minimise their impact:
Optimise your business hours and energy consumption to minimise energy usage during the Triad period, perhaps by turning off non-essential machinery or using an on-site generator instead. You need to do a cost-benefit analysis before you do this though, to make sure any savings you may potentially make will outweigh the incurred costs
Treat every day as if it is a Triad day. Regardless of when Triads occur, you can keep your energy usage to a minimum every day by turning off lights that aren’t in use so that you don’t get hit by spikes.
If your business uses half-hour electricity and you want to see if you can reduce your bills, get in touch with the team at D-ENERGi today.
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Spending on all types of business energy, including business electricity, tends to increase in the winter months – but the team at D-ENERGi can help you to make savings.
Cover the basics
Clearly label your light switches, and encourage your staff to turn off lights when they are not needed
Position your thermostats away from places where heat tends to fluctuate, such as near machinery or in drafts
Take regular floor walks around your business to ensure no computers have been left on that are not in use.
Avoid estimated bills by ensuring your meter readings are submitted on time
Ask your business electricity supplier if you can set up a direct debit to help spread the cost of your bills – you may be eligible for a discount too
Stay Informed
Look back at your company’s past electricity bills so that you have more of an idea of how your energy use changes over the year
Look into the possibility of getting a business smart meter to help you save time and manage your energy costs more effectively – and also get more accurate bills
Get your employees involved
Communicate with your employees to raise their awareness of energy usage at work, and encourage them to share energy-saving tips
Motivate them to change their behaviour by displaying energy-saving posters or stickers around the workplace. These tend to be most effective when placed at sites of frequent energy “misuse” such as computers, kettles, and light switches
Empower your staff by encouraging them to set up an employee Green Team or have an energy efficiency champion if you are a smaller business
Set targets for company energy use reduction at the start of winter, and offer employees rewards if they help you to hit these targets
Motivate your employees throughout the business to change their behaviour by creating a fun competition – “who can save the most energy this week?”
Think about investing a little for longer-term savings
Install timer switches on electrical items, as well as presence sensor detectors
Fit energy-efficient light bulbs
Think about installing task lighting instead of overhead lighting
Update older business equipment with newer more efficient versions
Get in touch with the team at D-ENERGi now for more tips on how to save money and get cheaper business electricity rates this winter.
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