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Governments new energy efficiency advice campaign for businesses

Recently, the government released a new business energy efficiency advice campaign. But why have they spent all this money on a campaign to drive awareness? Well, we have an idea. The campaign was released as the government withdrew the Energy Bill Relief Scheme and replaced it with the not-so-generous Energy Bill Discount Scheme.

Let’s delve into the campaign in more detail.

What is the new UK Government business energy efficiency advice campaign?

The new campaign aims to help businesses to reduce their energy bills and increase their energy efficiency with low-cost solutions.

They aim to achieve this by offering advice on how to save money and cut emissions dramatically with different suggestions. These include:

Replacing old lightbulbs
Installing light and heating timers
Turning down boiler flow temperature

Why have they released this campaign now?

The government campaign was released just as the support for business energy was withdrawn. The campaign aims to help highlight ways for companies to become more energy efficient and reduce their business energy bills.

They aim to do this cost-effectively so businesses can significantly reduce their energy bills without spending too much in the short term (and without the government paying).

Who is the campaign aimed at?

The main target for the new UK Government campaign on reducing business energy bills is SMEs. In small business energy, the government estimates that a 20% decrease in energy costs will represent the same benefit as a 5% upturn in sales.

What’s the point of following this when we benefit from the automatic discount?

Well, the discount scheme is nowhere near as generous as its predecessor. As an overview, the discount scheme will only kick in when the wholesale rates of electricity and gas exceed the following:

30.2p/kWh on business electricity prices
10.7p/kWh on business gas prices

You will only receive a discount for any cost greater than these thresholds, up to a maximum discount of:

1.961p/kWh of electricity
0.697p/kWh of gas

Only businesses that entered fixed business energy tariffs at the height of the energy crisis will receive a discount. The best way to reduce this is to compare business energy and negotiate a lower cost per kWh for gas and electricity.

💡The Energy Bill Discount Scheme ended on 31 March 2024.

What does the new government campaign look to achieve?

The new campaign looks to accomplish the following:

Boost business energy efficiency to cut energy costs and increase their cash in the bank.
To increase awareness, the energy bill discount scheme has replaced the relief scheme.
Highlight that businesses with large energy consumption are expected to save around 20% on wholesale energy costs.

How can a business reduce its energy bills?

There are plenty of ways to reduce your current business energy bill, ranging from short-term to long-term solutions. Here’s an overview, but we recommend you review our in-depth guide to business energy grants to help build a sustainable future.

Compare business energy prices: Compare the latest prices using the AquaSwitch commercial electricity and business gas comparison service. Compare business energy suppliers from across the market to get a great deal on your business gas prices and electricity rates.
Use energy-efficient lighting: Replacing old, inefficient lighting with LED bulbs can significantly reduce business energy consumption and save money on your business electricity bills. LED bulbs use up to 80% less energy than traditional incandescent bulbs and last up to 25 times longer.
Turn off equipment when not in use: Encourage employees to turn off equipment and appliances when not in use, especially at the end of the day. This includes computers, printers, copiers, and other office equipment. Power strips can make it easier to turn off multiple devices simultaneously.
Use natural light and ventilation: Maximise using natural light and ventilation in your workplace to reduce the need for artificial lighting and air conditioning. This can be achieved by opening windows, using window coverings to control sunlight, and arranging workspaces to maximise natural light. In addition to reducing energy costs, natural light and fresh air can improve employee productivity and well-being.