10 Business Energy Myths Busted

Business energy can seem like a complex industry, with technical aspects, jargon and some regulations that differ from the residential market. This can lead to confusion and the development of myths or misinformation that could potentially cost businesses money.

In this article, we look at 10 common business energy myths and separate fact from fiction to help companies make more informed decisions when it comes to their energy use, choice of tariff and supplier.

Myth 1: Business Energy Always Costs More Than Domestic Energy

It’s a commonly held belief that business gas and electricity cost more per unit than residential consumers pay for the energy used in their homes. While the rates that businesses pay for energy depend very much on their current tariff and contract with their commercial energy supplier, the truth is that it’s certainly not always the case that unit rates for businesses are more expensive.

It needs to be taken into account that most businesses pay a 20% rate of VAT on energy bills, while home bill payers will be charged 5% VAT currently. The standing charges that businesses pay are also often higher due to the greater demands on infrastructure and service when it comes to supplying commercial premises with electricity and/or gas. However, when it comes to energy rates themselves, some tariffs from certain suppliers can actually mean the unit costs for businesses are lower than those being offered to residential customers. As many businesses will use more energy than most households, depending on the activities they undertake, their bills can be larger, but the rate paid for each unit may be lower.

To discover the cheapest energy prices available for your company, our team can compare business energy rates.

Myth 2: It Uses Less Energy to Keep Workplace Lights on All the Time

This myth probably developed at a time when workplace lighting was often in the form of huge fluorescent tube lights that required a burst of energy every time they were switched on. These days, most businesses have much more modern lighting systems, such as using LEDs, which draw significantly less power and also don’t use any extra energy when they are first switched on. Therefore, it will always be cheaper to switch this kind of lighting off when not needed rather than keeping it on all of the time.

Myth 3: It’s Cheaper to Keep Workplace Heating on All the Time on a Low Setting

The thinking behind this myth is that leaving a heating system at a low temperature at work, even when no one is using the premises, will mean that it takes less energy to get back up to temperature when it is needed, saving money overall.

In general, buildings will lose heat throughout the day and night, with the amount being lost depending on factors such as the level of insulation. Leaving the heating on when the workplace isn’t being used, even on a low setting, means that the system is using energy to maintain the temperature when it’s not needed. This may mean that it takes less time the next day to bring the temperature up to where it’s needed to keep staff comfortable, but this won’t cost less than only using the heating when people are using the building. It will be more cost-effective to turn on the heating system only shortly before the premises are used and turn it off again shortly before it is unoccupied.

There may be exceptions to this. In the event of a very cold spell, where the building is likely to be subjected to below freezing temperatures, keeping the heating system on low even when not in use can help stop pipes from freezing. Frozen pipes can result in burst pipes once they thaw, which can cost businesses a lot to resolve leaks and repair any damage caused.

Myth 4: Workplace Solar Installations Only Work in the Summer

For UK businesses that invest in a solar PV installation at the workplace, there is no doubt that shorter daylight hours mean the system will generate less electricity from the sun during the winter months. However, solar panels still generate some electricity all year round, even without direct sunlight, which means that businesses with an installation can save on their energy costs during all four seasons. The solar PV system will work most effectively during the part of the year with longer days, and where the array is positioned will also make a difference in performance. However, solar installations at work are designed to work and bring benefits year-round.

Myth 5: Leaving Appliances on Standby is as Good as Switching Them Off

When it comes to energy use in the workplace, it’s fairly common for appliances to be left on standby overnight or between uses rather than being switched off or shut down entirely. When it comes to trying to save energy, most appliances on standby will use significantly more energy than those which are switched off and even unplugged when not in use.

There can be some exceptions to this. For example, some photocopiers or other devices might automatically go through a warm-up or preparation process every time they are switched on from being entirely shut down, which uses a significant amount of electricity. If they do this when being switched on but not when being ‘woken up’ from standby, it might save more energy to leave them on standby between uses, but it will likely still be more cost-effective to switch off entirely when there is a big gap between uses, such as outside of office hours.

Myth 6: Switching Business Energy Suppliers is Complicated

Some businesses, especially if they have never changed energy suppliers before, believe the process of switching is complicated and takes a long time. Thankfully, this isn’t the case, with most business energy switches taking just a little admin and a few weeks to complete. The savings that can potentially be made by moving providers and tariffs can be significant, so it’s well worth getting a business energy comparison quote.

At BusinessComparison, we can guide you through the process in just a few minutes, find you the best available deal and make the switch happen, including telling your existing supplier that you are moving to another deal.

Myth 7: Renewable Energy is Very Expensive for Businesses

Many businesses might want to switch their energy to a more sustainable tariff, such as one using renewable energy sources, but are worried that this will lead to an increase in costs.

The majority of business energy suppliers now offer renewable options, which typically means that the provider buys an amount of renewable energy equivalent to your company’s usage. The prices offered by suppliers for renewable business energy can vary, but in many cases are similar to what you would pay for energy provided from traditional sources.

At BusinessComparison, we can help you negotiate the best available prices on renewable business energy from across our panel of suppliers.

Myth 8: Using Screensavers on Office Computers Saves Energy

Screensavers became commonplace in the 1990s as more people started to use computers at home and work. They were created to protect computer monitors from damage when the glow from the display could actually mark the glass screen if left on for too long. A screensaver would start displaying on the computer screen after a set period of time when it wasn’t being used.

Computer monitors no longer work in this way, so there is no danger of modern devices being damaged by not running a screensaver.

Screensavers can actually use more energy to operate than if the display just remained fully on, as the visuals utilised by screensavers take energy to generate and move around. The best way to save energy when computers are not being used is to turn off the monitor or display rather than use a screensaver.

Myth 9: Businesses Can’t Control Their Energy Use

Every business is unique, and there are some types of companies that will always use energy that is higher than average because of the activities carried out. For example, a business that runs lots of machinery or has operations that require a specific temperature to be maintained will use more energy than a company that simply runs a standard office environment. However, whatever the type of business, there will always be some areas of energy use that can be controlled and optimised to help reduce bills.

This could include measures such as utilising timers for heating the premises or installing motion-activated lighting so that areas of the building are only using energy for these things when actually needed.

Getting all staff members involved in helping to save energy whenever possible at work can make a big difference in usage and bills.

Take a look at some of our useful business energy-saving tips.

Myth 10: All Business Energy Suppliers are the Same

It’s a common misconception that all business energy suppliers are the same, so it doesn’t really matter who you choose to provide the electricity and/or gas to your workplace.

Business energy in the UK is not subject to a price cap in the same way as domestic energy currently is, so the prices charged by commercial energy suppliers can vary very widely, as can the way that particular tariffs are structured. This is a major reason why it’s important for businesses to check that they’re not paying more than needed for energy.

While business energy prices are always a major factor in the choice of supplier, there are other elements to consider too, including the customer service levels offered. Being able to reach out to your energy provider and get a useful response quickly when needed is important for businesses as well as the price being paid for energy.

Considering a range of different suppliers, both the ‘big six’ and other providers, can help ensure that your company gets a deal best suited to your specific usage and other circumstances.

Getting the Best Energy Deal for Your Business

If your current energy contract is coming to an end soon, or you’re already on a deemed contract because your previous agreement has ended or you’ve just moved to new premises, it’s an ideal time to compare commercial energy to find the best deal for your business.

At BusinessComparison, we take the hassle out of searching and switching by doing the hard work for you. We use your unique details and usage data to find the best available commercial energy deal and help you to switch as smoothly as possible.