Customer data from energy broker Smarter Business has revealed that businesses’ average annual spend on gas and electricity has increased by 33% between the beginning of 2016 and October 2018. Smaller businesses that use less energy are the worst-affected.

Smarter Business collated and analysed data on the average energy spend from a sample of 8000 of its customers.

The data is split into different levels of energy consumption:

Micro - 0-25 kilowatt hours (kWh)
Small - 25-50kWh
Medium - 50-100kWh
Large - 100-200kWh
Macro - 200+kWh

Smarter Business then compared the average annual spend for each consumption group. What they found is that the micro energy users (up to 25,000 kWh) can expect to spend 50% more on energy this year compared to what they paid in 2016 - from £1030.76 in 2016 to £2066.80 in 2018.

Macro-users are by no means exempt, spending more on energy on an annual basis, with an increase of 33% from 2016 to 2018 - which is also the average increase across the different consumption groups. According to the data, medium energy users are slightly less affected by the rise in prices, although they are still estimated to spend 20% more on energy in 2018 than they did in 2016.

The average annual spend increase for each consumption group is as follows:

Micro - 50.13% (from £1030.76 to £2066.8)
Small - 22.04% (from £3131.47 to £4016.62)
Medium - 20.29% (from £5706.49 to £7158.91)
Large - 39.83% (from £8589.03 to £14273.67)
Macro - 33.10% (from £33051.13 to £49400.81)

Why the increase in energy prices?

Energy suppliers across the board have been increasing their energy tariffs significantly over the last few years. But what is causing the rise in prices? Some of the contributing factors include:

- Increase in wholesale electricity prices
- The closure of the UK’s main gas storage facility mid-2017
- Brexit
- Extreme weather conditions

Read more about why UK energy prices are rising steadily.

What can your business do to mitigate the impact of rising energy prices?

- Shop around for cheaper energy rates.
- Look for an energy contract more suited to your specific consumption needs.
- Use the services of an expert energy broker who has agreements with all suppliers and can compare quotes on your behalf to find you the best deal.
- Conduct an energy audit and use accurate energy consumption data to identify potential areas of energy savings.
- Implement energy-saving measures and avoid wasting energy - by turning off all appliances at the end of the day, for example.

Learn about more ways to save energy in the office here.

Editor’s Note:

This data is from a sample set of 8000 Smarter Business customer records between 2016-2018. It reflects the average annual spend of customers on energy, grouped by industry and consumption level.

When quoting these stats, please attribute to Smarter Business.

About Smarter Business:

Smarter Business is one of the UK’s leading independent consultancies, helping businesses secure the most comprehensive savings solutions from utilities contract management and procurement to business loans and facilities maintenance. https://smarterbusiness.co.uk/

Contact:

Tyler Trenam
Smarter Business Marketing Manager
[email protected]