Westminster Compliance

Gas, electricity and telecoms are among the biggest expenditures for any business. Many energy users are paying far higher prices than necessary, as they do not have the time or expertise to fully understand the market and the different cost-cutting options available.

Against a background of financial cuts, it is sensible for businesses to evaluate their contractual obligations and review ways to monitor energy efficiency. With the amount of energy used, along with the recent energy price increases and predictions of ongoing volatility for the foreseeable future, it is more important than ever for businesses to ensure they are on the ‘best deal’.

Every month approximately 90,000 business energy contracts expire. Many firms fail to realise this and do not send suppliers the necessary written termination notice, as per the terms and conditions of their existing contract. If suppliers receive no notification they can automatically renew the contract on a rollover basis, in most cases on a noticeably higher rate.

Surveys published in the press suggest 84 per cent of small businesses are unhappy with their current supplier, but fewer than 14 per cent knew when their contract is due to end. With all major suppliers announcing significant price increases, now is time to investigate your contractual situation.

Smart metering

The vast majority of disputes between customers and suppliers are over-estimated reads that lead to inaccurate billing. Customers are often under-billed for a period, and eventually receive a large bill, which can put financial strain on a business.

Smart meter technology was first introduced in the UK in 2008. It records consumption in intervals of an hour or less using technology similar to the mobile phone network, communicating data back to the supplier, thereby ensuring that bills are calculated for the exact units used. Users can view all consumption data online, enabling them to view their usage patterns and giving them the opportunity to identify whether they are on the correct meter and if they are using their electricity economically. With this technology, users can cut 15 per cent from their electricity bill, while becoming more energy efficient.

Consulting outside advice

Navigating energy contracts and technology can be daunting and time consuming. Consulting a specialist broker might be a useful step forward. Our recommended broker helps businesses switch suppliers when their contract renews to make sure they are receiving the best possible rates for their energy. They provide advice on the rights and obligations of businesses when suppliers try to enforce contract clauses demanding security deposits and large upfront payments and offer guidance on energy efficiency to further reduce gas, electricity and telecom bills.

Contact us today to find out more 020 3411 7888.

The business case for installing renewable energy technologies is now stronger than ever, according to new research that revealed average returns of 11 to 12 per cent on investments made in onsite renewable energy systems.

Energy bills are expected to rise by 37% by 2020, and some people believe that they could be higher. So the financial justification for investing in renewable energy such as ground source heat pumps and solar panels is becoming more and more convincing.

The justification is not just to offset the cost of energy, but with feed-in tariffs and the renewable heat incentive (RHI), there is “a strong case and increasing requirement for businesses to produce their own renewable energy”.

A Carbon Trust paper states that “both feed-in tariffs and the RHI offer fixed payments for generators of renewable energy or heat, without which returns would be around the six per cent mark”.

If your business has a roof, the chances you will qualify for this type of technology. Many companies rent their premises, however, with the “Green Deal” coming in next year, there will be a structure whereby both landlord and tenant can benefit form renewable energy technology.

Did you know Westminster ComplianceRedu are able to help organisations save in excess of 10% of all their energy (electric, fuel, gas and water) expenditure. This is based on current prices which we have all been told will rise later this year by a minimum of 10% for gas and electricity. We are also in a position to save on the costs of waste disposal and with some organisations several other areas.

Whilst showing organisations how to save this money without large initial costs, we can also ensure that all the new legislation concerning environmental legislation is dealt with. By following our advice new “green” credentials will be achieved that then can form part of future marketing, which can also advise with. We are also in a position to help those who follow our advice gain nationally recognised environmental and energy credentials.

A recent example of an Hotel with 65 rooms showed savings in excess of £30,000 pa representing a reduction of over 15%. The measures did not involve massive capital investment, and some measures were merely down to management.

In this current economic climate, the environment is rarely at the top of our priority list. However, survival is, and by reducing all your energy costs it will help your bottom line.

We are all concerned by how much our energy bills have increased over the last few years. The worrying thing is that the price per unit of fuel will continue to rise.

However, this has inspired genuine innovation of cost saving technology across a wide range of industries. Companies worldwide, including the UK are recognising the opportunity to improve the efficiency of equipment and develop new products which reduce energy usage.

Areas include transport, heating, lighting, air-conditioning, waste management, water usage, etc, etc. Almost every area of your business is now being affected by this innovation. For a recent client I identified over £20,000 of energy savings, representing a reduction of over 15%. The measures did not involve massive capital investment, and some measures were merely down to management. We are now implementing those changes and the client is benefiting financially. The increase in all fuel costs will not affect them as much.

Let us look at larger organisations. A recent article showed how the M&S Plan A has brought £70 million worth of savings. Click here http://bit.ly/izf0V0 for further details.

The M&S Plan A was introduced to improve the sustainability of the business, and ensure that their environmental impact was minimised. The result has been massive cost savings. Similar percentage changes could be applied to your business.

I recommend that you also look at these measures, as they will also save you money. Yes, you will help the environment. However, in this current economic climate, the environment is rarely at the top of our priority list. However, survival is, and by reducing all your energy costs it will help your bottom line.