Business energy efficiency: How to measure and improve performance

Business energy tariffs include a unit cost per kWh of electricity or gas consumed. Improving business energy efficiency reduces energy consumption while achieving the same business outcomes, which translates into lower bills.

Large business energy customers are required by UK law to measure and disclose their energy consumption through Streamlined Energy and Carbon Reporting and to systematically identify ways to improve energy efficiency through the Energy Savings Opportunity Scheme.

The wholesale gas and wholesale electricity market in Britain are directly impacted by geopolitical events. Improving energy efficiency helps protect the profitability of organisations by reducing exposure to volatility in commercial gas and business electricity prices.

The national grid remains dependent on burning fossil fuels at gas power stations to generate electricity. Improving energy efficiency reduces direct carbon emissions from a gas supply and indirect carbon emissions associated with a business electricity connection.

Consumers are increasingly aware of the environmental impact of their purchases. Steps to improve business energy efficiency and reduce carbon emissions are a key component of corporate environmental strategies, contributing to a green reputation and consumer trust.

Setting your boiler flow temperature to around 60°C helps it run more efficiently. Rooms may take slightly longer to heat, but overall gas use and business gas bills will be lower.

LED bulbs and tubes use up to 80% less energy than halogen or incandescent lighting and last much longer. Upgrading fittings quickly pays for itself through reduced electricity costs.

Motion sensors in low-traffic areas such as storerooms, bathrooms, and stairwells ensure lights are only on when needed, cutting unnecessary business electricity use.

Turning down your workplace thermostat by just one degree reduces heating demand without affecting comfort, as long as it stays within safe workplace temperature guidelines.

Draughts around doors, windows, and vents make heating systems work harder. Simple fixes like draught excluders or sealant can keep warm air in and costs down.

Ceiling or portable fans create a cooling breeze at a fraction of the cost of air conditioning, helping staff stay comfortable during hot weather.

Encouraging employees to switch off lights, unplug unused devices, and use equipment efficiently can make a measurable difference. Visual prompts or short training sessions work well.

Appliances such as dishwashers often include an eco mode that uses less energy and water. The cycle takes longer than a standard wash but usually delivers the same results, making it an easy way to cut consumption.

Making better use of natural light reduces reliance on artificial lighting. Skylights, large windows, reflective surfaces, and open layouts help bring sunlight into workspaces, cutting electricity use while creating a brighter, healthier environment for staff and customers.

Air-source heat pumps offer one of the most efficient ways to heat commercial buildings. When combined with good insulation and a green business energy tariff, they can significantly reduce heating costs and carbon emissions, while also removing the need for a business gas connection.

Poor insulation leads to energy loss and higher heating bills. Upgrades such as cavity wall insulation, roof insulation, and double glazing reduce wasted energy, lower business energy consumption, and improve a building’s Energy Performance Certificate (EPC) rating.

Outdated equipment often consumes far more energy than modern alternatives. Upgrading air-conditioning units, refrigeration, or other heavy-use machinery can cut electricity use by up to 30% while lowering ongoing maintenance costs.