How to reduce business energy costs: practical steps

Start with an accurate bill

Estimated bills make it hard to judge cost or compare offers. Submit regular meter readings, or ask whether a smart or advanced meter is suitable for your premises, so bills reflect actual use.

Check the bill names the right business, supply address and meter reference, and that the unit rates and standing charges match your contract.

Know your contract position

Out-of-contract and deemed rates are often higher than agreed fixed-term prices. Find your contract end date and notice requirements, and review offers early enough to agree a replacement before the term ends.

Cut avoidable energy use

Small operational changes can reduce consumption without affecting how the business runs.

• Switch equipment, lighting and heating off outside opening hours, using timers where practical.
• Replace older lighting with LEDs and fit sensors in low-traffic areas.
• Service heating, refrigeration and air conditioning so they run efficiently.
• Check heating and cooling are not running against each other.
• Draught-proof doors and windows and review thermostat settings.
• Ask staff to report equipment left running or faults that waste energy.

Compare quotes on the whole cost

When you compare suppliers, use the same consumption figures and contract length for each offer. Look at unit rates, standing charges, VAT, Climate Change Levy, contract terms and any broker fees. A comparison helps you see options; it does not guarantee a lower price, and staying with your current supplier can be the right choice.

Check for support you may be eligible for

Some businesses qualify for VAT and Climate Change Levy relief, for example where energy use is low or for qualifying charitable use. Check HMRC guidance and ask your supplier whether a reduced rate should apply to your account.

Frequently asked questions