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Managing Electricity Cost for your Business

Electricity waste can appear in many forms including excess time, volume, pressure and temperature. In order to realise electricity savings opportunities, it is important to match the electricity your business actually uses to what is really needed. Once these requirements are established, eliminating waste becomes an effective cost-savings tool. While some operational changes can have relatively low or no implementation costs, investment in equipment upgrades or retrofits may have a shorter payback period than you would think and can lead to permanent long-term savings. Simply turning off equipment when not in use does not cost much but can shave off considerable amounts of dollars over time on your electricity bill.

By comparing monthly data, you can determine how electricity consumption at your business varies over time. Understand where electricity is used, such as identifying equipment that draws the most power. If you improve its efficiency, you will see a bigger reduction in your electricity costs. An electricity audit provides a useful, detailed breakdown of how much electricity is consumed in your business.

Engaging employees in the electricity management process helps them to understand the impact that electricity costs have on your company’s bottom line, since they are the ones who operate machinery and control your building management system by turning on computers, lights, etc. Involving staff in the process means that they will be more likely to use electricity efficiently and present opportunities for ongoing training and collaboration between business units. This can lead to employees who are more likely to share ideas about how electricity use can be reduced.

Once you have reduced your company’s requirement for electricity, you may consider supply-side alternatives to meet your electricity needs such as renewable generation options like wind, solar or biofuels.


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