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How your business can deal with rising energy costs

Businesses across Ireland are facing big increases in the price of electricity and gas. Read on to see how you can reduce the impact of rising energy costs.

Analyse your costs

If there’s ever been a time to be smart with your accounting and cashflow, it’s now.

It is vital to keep as much cash as possible in your business and stay in control of your expenditure. You need to work out where you are spending too much money and identify the most profitable areas of business to focus on.

Find the best energy deal

Prices are high across the board, but you might still be able to reduce the amount you are paying for gas and electricity.

The commercial energy market is competitive and suppliers are typically keen to increase their customer base. Business premises tend to use more energy than domestic properties so reducing your bill can make a significant difference.

There are many well-known price comparison websites available (powertoswitch.ie, bonkers.ie etc), where you can compare energy prices and hopefully find a better deal for your business.

There are also some new services out there such as energy brokers who will assess your bills and do the research for you- they often do not charge a fee to you the end user but make their money from the energy providers.

Energy efficiency measures

Steps you can take to reduce energy at your business premises include:

switch to LED lightbulbs: They last longer than traditional lighting and can reduce your energy bill by 20-40%.
use eco mode: Switching appliances such as dishwashers and printers to eco mode will reduce your energy consumption.
turn off equipment at end of the day: Switching off computers and other office equipment when not in use will cut your use of energy.
install smart meters: This will make your bills more accurate and allow you to monitor your energy use on a daily basis so you can take steps to fix any problems.
minimise heat loss: Installing double glazing and insulation can reduce unnecessary heat loss.
energy audits: You should regularly review your energy consumption to identify where you can be more efficient. Many suppliers offer this as a free service. You can also conduct it yourself or with the help of an external expert.
staggering work hours and remote working: Allowing staff to come to work at different times can cut energy use as can running a hybrid model with staff working from home or elsewhere some of the time.

Increase your prices

You may want to increase the prices of your products or services to offset the impact of energy costs.

Raising your prices is never an easy decision, particularly at a time when your customers are also suffering as a result of the cost-of-living crisis. However, there are ways to do it successfully.

Steps include analysing your exact costs to work out by how much you need to raise your prices and segmenting customers to identify those who will be least sensitive to price increases.

You can also take actions such as adding extra value for customers to soften the blow of a price rise.

Date published 14 Jul 2022 | Last updated 2 May 2024

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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