How Businesses Should Respond to Rising Electricity Prices

How Businesses Should Respond to Rising Electricity Prices

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Rising energy bills are a concern for businesses of all sizes. Increasingly, manufacturers are working on cutting consumption and installing renewable power sources.

The new administration must do more to support struggling businesses. Cashflow is already stretched, and government support must enable enterprises to continue producing sustainable products.

Look for Alternatives

Changing to a less expensive supplier is among the best ways to save money. Evaluate your current provider against nearby competitors. The outcomes you get may surprise you. The resulting savings can be reinvested in improving your business performance. No matter who your supplier is, if you reside in West Penn Power’s service area, they will take care of your line maintenance and outages. The cost of your electricity will be determined by the supplier you choose. For comparison, West Penn power rates charge residential customers 8.514 cents per kWh. When a private provider offers less expensive rates than the utility, you can reduce your energy costs.

Be Prepared

Businesses already feel the pinch as rising energy costs force them to make drastic cuts. 12% of British manufacturers have made job cuts due to the cost increases, and another 53% expect their bills to jump by more than 50% in the next 12 months.

Switching to renewable power sources is one way to protect your business from a spike in fuel prices. Wind and solar are great choices because they are both relatively cheap ways to generate electricity.

Despite that, you should be prepared for higher electric rates shortly because of fossil fuel price volatility. Understanding how energy costs are determined and what factors can increase those rates is essential, especially in regions where coal and natural gas power generation is a dominant market.

The prices utilities charge for electricity vary minute by minute, depending on various factors like the availability of generators, fuel costs and power plant availability. Those prices are generally set through a competitive procurement process regulated by the state’s public utility commission or another regulator.

While your electricity bill can include many charges, you should always compare the wholesale generation portion of your account (also called supply, fuel or energy charges) to the prices of similar customers. Then, look for opportunities to reduce your overall electricity cost by switching suppliers or making energy efficiency upgrades that can save you money.

Review Your Contract

Whether you’re preparing to sign a contract for a new job, lease a business space or purchase a software system, there are some things you must do to ensure that your agreements comply with rising electricity rates. These steps are essential because they provide that you can protect your business from unforeseen costs and liabilities.

The first step is to review your existing contracts. This includes brand-new arrangements, as well as any existing agreements that are coming up for renewal. This allows you to improve the contract based on lessons learned since the last time it was signed, fix something overlooked, or change language due to industry law, regulations, or guidelines that have changed in recent years.

You should also review any terms related to the termination of the contract. It is vital to have clear conditions that allow you to terminate the agreement or the terms that automatically renew it.

The contract review process is an essential part of any business. An organized and efficient contract process can make all the difference in your ability to protect your business. With a solid contract process, you can be confident that all your agreements align with rising energy rates and other vital factors. You should also be able to effectively track your contracts and have a team to ensure your arrangements are constantly reviewed and optimized.

Turn Off Computers and Other Office Equipment

Make it a habit for your team to shut down computers before they leave if they are not being used when they are not in use. A quick way to cut back is to turn off and unplug as many devices as possible at the end of the day. This covers toasters, coffee makers, and appliances that use little energy.

Avoid using Phantom Energy

Phantom energy is the power that plugged-in but unplugged devices continue to use. Have all of your computer peripherals—printers, monitors, etc.—been linked to power strips, also referred to as “surge protectors,” so that a single switch can shut down a number of them simultaneously? An excellent office energy-saving tip is this.

Lower the Peak Demand

Lowering peak demand is one of the best ways to save electricity in an office. The term “peak demand” describes the times of day when energy consumption is at its highest. Peak demand periods typically occur during business hours. By spreading out work hours and start times, operating industrial machinery in the evening and early morning, and conserving energy throughout the day, you can lower your demand during this time.

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