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Micro Businesses - Take Control of Your Energy


As a small business owner, managing energy costs can be a crucial factor in the success of your enterprise. With energy prices on the rise, it's essential to find ways to save on electricity bills without compromising productivity. This guide will share some tips and tricks that may help you save money on your energy bills.

Understanding your business size classification is important when it comes to energy prices.

The energy industry defines a micro business as a non-domestic consumer that falls under one of the following criteria:

- uses less than 100,000 kWh of electricity per year,

- uses less than 293,000 kWh of gas per year,

- employs fewer than 10 employees (or their full-time equivalent) and has an annual turnover or balance sheet no greater than €2 million (approximately £1.8 million).

If your business pays less than £12,000 per year for either electricity or gas, then you may also be considered a micro business.


The Benefits for Micro Businesses.

Being classified as a micro business can provide unique benefits such as more transparency and further protection of your rights.

Ofgem has introduced a package of policy measures effective from 1 October 2022 to strengthen supply license conditions and ensure that consumers receive key information, such as third-party costs.

A new supply license condition requires energy suppliers to work only with brokers that have signed up to a qualifying Broker Alternative Dispute Resolution (ADR) scheme from 1 December 2022. In addition, suppliers are prohibited from requiring micro businesses to provide notice of their intent to switch, except for Evergreen contracts.

For micro business customers, suppliers must put the contract end date and notice period on all bills for fixed-term contracts, with a maximum notice period of 30 days to end a micro business energy contract. Microbusinesses protected by back-billing rules should not be charged for any unpaid energy use more than 12 months ago if they have not received an accurate bill.


Cutting Down Costs on Your Energy Bills

As a micro business, reducing your energy bills is essential to help you save money and increase profits. Here are some tips to help you cut down costs on your micro business bills:

1. Switch to a cheaper tariff: Compare energy tariffs from different suppliers and switch to a cheaper one to reduce your energy bills.


2. Monitor your energy usage: Keep track of how much energy your business uses and identify areas where you can reduce consumption. Use smart meters to get accurate energy usage data.

3. Use energy-efficient equipment: Invest in energy-efficient equipment, such as LED lighting and energy-efficient appliances, to reduce your energy usage and costs.


4. Implement energy-saving practices: Encourage your employees to turn off lights and equipment when not in use, and switch to renewable energy sources such as solar panels.


5. Insulate your premises: Insulate your premises to prevent heat loss during colder months, which will reduce the amount of energy you need to heat your space.


At ECBS, we can provide you with advice on how you can save on your bills and help you switch suppliers. To view the full range of services we offer, visit our services page here.

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