Alongside profit, cutting expenses is one of the main goals for small businesses. But how can business owners balance that equation and find the right opportunities to save money? One way is to learn how to lower your utilities costs effectively. Sounds obvious, doesn’t it? Yet, every day, tons of businesses waste money on electricity and gas bills.
Whether you own restaurants or small offices, there is always something you can do to cut energy costs and increase your business’ efficiency — and it’s quite easy. OK, electricity rates in Canada aren’t exactly an easy topic, but we made it simpler for you with the tips below.
If you want to learn how to reduce your electricity and natural gas bills, read our business energy-saving tips and get the most out of utility deals. Whether you’re looking for power and utility companies or just want easy-to-apply tips, check our complete guide on how small businesses can lower their utility bills.
Search for the best electricity and gas plans for your small business
The multiple monthly costs of owning a company will look less costly if you fit them properly into your budget. Once you know your average consumption and your business’ specific needs — such as ongoing equipment, heating and electricity — you will be able to find the best energy plan for you.
By a proper utility plan, we mean the one that will fulfill your energy needs and save you money at the same time. This is something that depends on the electricity suppliers and the offers they have available. (Note: Electricity and natural gas plans are available through multiple plans in deregulated markets. Usually, customers can choose between fixed or floating rate plans.)
Fixed rates are ideal for business owners who value cost certainty. Consumers who purchase fixed-rate plans generally know what to expect from their utility bills at the end of each month. These plans can last up to five years, which means you will pay for the same rates monthly and will have better control of your budget. Fixed rates are often higher than floating rates. Still, plenty of consumers choose predictability over lower prices.
Floating rates can be somewhat risky, as prices change from time to time, so they won’t offer such a cost certainty. Yet, they can save you plenty of money as they can be lower than the fixed rate for years. In Alberta, for example, floating rates have been lower than the fixed ones for about two years as of January 2019.
After you start looking for electricity suppliers, then search not only for the best hydro companies in your area, but also find out which plans they offer and if they fit your necessities. The same provider can offer you totally different options. The same goes for natural gas.
Learn how to read your utility bills
Before you find great energy deals, learn more about your energy usage. For example, what’s your average kilowatt-hour (kWh) usage? Or, what’s your most energy-consuming appliance? To find the best plan, you will need to know more than your average utilities cost, but also the meaning of the main terms in your energy bill.
If you don’t know anything about it, a good start would be this breakdown of the average Ontario electricity bill. Of course, some details can change considerably from province to province, or even from a provider to another. The primary information, however, should be similar.
Even if you don’t live in Newmarket, North Bay, Kitchener, Mississauga, Toronto or Kingston, these are useful resources for you to know more about how utility billing works. Also, if you don’t know how much utilities cost in Ontario, this hydro bill breakdown will help you understand what to expect from your bills.
Buy energy-efficient appliances
When it comes to small business energy consumption, about 29 percent is related to auxiliary equipment and motors.
Let’s say a business owner in Saskatoon or Regina wants to switch out decades-old refrigerators for new, energy-efficient ones. Even though they will spend a lot of money purchasing new fridges, they will get a significant portion of their cash back as energy savings. There is even an Energy Star refrigerator calculator online that allows you to know how much money you could get back from energy-efficient fridges. In some cases, consumers can recoup up to $1,400 in a couple of years.
Energy efficiency isn’t only about environment-friendly action. The more energy-efficient your appliances are, the lower your electricity bill. Purchasing such devices will seem more like an investment rather than spendings after your reduced energy bills start to arrive.
If a refrigerator or a new laundry machine is not currently in your plans, you can start with smaller steps such as switching incandescent light bulbs for LED ones or getting a new programmable thermostat.
Compare utilities in Canada — find the best electricity providers
Whether in Saskatchewan, Alberta, Ontario, Manitoba or British Columbia (BC), business owners can search the cheapest energy rates in their areas using energyrates.ca. The energy rates website provides users with a convenient rate comparison tool. You just need to enter your business’ postal code, and you will have access to the current electricity and natural gas plans in your area.
Once you use the energyrates.ca price comparison form and find the best energy rates for your company, you can start to calculate what’s going to be the cost of utilities for your business and plan your expenditures, whether you are in Brandon, Winnipeg, Vancouver, Surrey or any other city in the provinces covered by the website.
Alberta is the least-regulated energy market in Canada, so there are more service providers for basic utilities available in the province. Business owners in Edmonton, Calgary, Red Deer and Lethbridge, for example, can compare energy rates from many fixed, floating and regulated-rate providers.
Don’t be afraid of upgrades
Renovations and related upgrades sound costly, right? Yes, they are in most cases. What plenty of people don’t know, however, is that upgrades can save you money on your utilities in the long term.
Picture yourself in this situation: You own energy-efficient appliances, your electricity rates are reasonably low, and everything seems to be working smoothly. Still, your power and gas bills only seem to go higher. What would you do?
If you don’t have an answer to that, maybe it’s time for you to check for drafts and air leaks. Be it new filters, proper insulation, window shades or specific sensors, there’s a lot you can do to draught-proof your business.
A door that takes too long to close here, an old window there — each draught issue could be adding to your monthly expenses. According to the United States Environmental Protection Agency (EPA), consumers can save an average of 15 percent on heating and cooling costs by finding air-sealing solutions.
Indeed, most of these renovations will cost you money. On the other hand, they will provide you with lower energy bills in the short term. Depending on how much you spent on improvements, you could have your money back in savings in less than a year.
