Have you ever found yourself flummoxed by your business bills? Never fear, we’re here to help
The basics of running any business are fairly simple: bring in more money than you spend in order to generate a profit. Yet factors like energy usage can quickly rack up the costs you have to pay out. But broadening your understanding of how you use your energy can help you find smart ways to reduce costs.
And one of the simplest ways to improve your energy understanding is to get to grips with your meters.
Simply put, taking regular meter readings can help a business to gain a clearer understanding of the units of energy used on a weekly or monthly basis in the workplace and therefore what suppliers will be billing you for.
It’s important to provide regular meter readings
When you first switch to a supplier, the energy rate you’ll be given will usually be based off an estimate of how much energy you are expected to use. And, as Is the nature of an estimate, this could easily be higher (or indeed lower) than your actual gas and electricity usage.
Providing regular meter readings means that the bills you receive are as accurate as possible. Without accurate billing there is a good chance that the direct debit is too high and that cashflow will suffer as a result. While it is true that this money may be recouped or transferred at the end of a contract, it is certainly not best practice to pay out more than necessary upfront.
Bear in mind that a fixed tariff means the rate you pay per unit of energy is fixed, not your monthly cost. So your prices will still rise if your supplier thinks you’re using more gas and electricity.
Giving regular meter readings is an important part of saving on energy costs long term. We recommend sending accurate readings to your supplier at least every couple of months.
What’s the difference between an MPAN and an MPRN?
Often, an MPAN or MPRN number will be needed in order for your business to receive an accurate energy quote. So you might be wondering what these numbers are and where you can find them.
Every electricity meter features a unique number known as an MPAN. Similarly, gas meters all feature an MPRN number. These numbers help to confirm the detail of your energy supply type and consumption, and is also necessary if you decide to switch to a new supplier.
The easiest way to find your MPAN and MPRN numbers is to look on your electricity or gas bill. Your MPRN will appear as a long 11-digit number, while the MPAN will be a series of shorter numbers split into six grid boxes.
How are smart meters different?
Smart meters are designed to make energy usage more efficient, and therefore more cost effective. Not only do they show you exactly how much energy you’re using, but they also transmit this data directly to your supplier, eradicating the need for estimates.
Investing in a smart meter can be an effective way of lowering energy costs. The energy regulator, Ofgem, has even stated that every business should have a smart meter compatible with all energy suppliers by 2020.
Why should you consider switching?
There’s a lot more you can do to reduce your energy costs than simply offering accurate meter readings, and one of the most effective measures is to make sure you’re with the right supplier.
Switching supplier can help to lower the cost of your business utilities. Energy contracts can run from a single year up to five or six years. This suggests that there are plenty of businesses out there who haven’t checked their tariff for a while. If your contract has already ended, the likelihood is that you will have rolled onto a standard variable tariff which costs significantly more than the most competitive rate.
If you need help finding the best energy supplier for your business, The Energy Check is here to simplify the process. Get in touch today by calling 0191 691 18 02 or click here to start using our business energy comparison tool.