Small businesses wasting their energy by £82 million per year

posted by 7 years ago in News

As autumn draws in and workplace thermostats are cranked up a few notches a new study’s highlighted the extent of energy overspending in small and medium-sized businesses in the UK.

The research, that was carried out by the Energy Efficiency Financing Scheme which is a joint initiative between the Carbon Trust and Siemens Financial, found that surplus energy spends are costing SMEs £82 million a year. They questioned businesses across a sample of key industries about their annual overspend. Inefficient technology and old equipment are areas highlighted for hiking up energy costs.

Now businesses are being encouraged to make savings by switching to greener energy sources such as low energy lighting, solar PV, energy-efficient motors, low carbon air conditioning or biomass heating.

Myles McCarthy, managing director of Carbon Trust Implementation Services, said:

“By investing in energy-efficient equipment as well as renewable energy technology, businesses can reap significant energy savings and cut down on their energy bills. Any sort of green investment is a step towards saving money, improving business competitiveness, and being a responsible citizen. Organisations that recognise the long-term benefits brought by energy efficiency will no doubt be better positioned than their competitors to grow their businesses more sustainably and profitably.”

It’s estimated that UK service sector SMEs could save up to £414 million a year by altering their energy use. Head of Philip Brennan says it makes sense for small and medium-sized businesses to consider their options,

“Running a business is expensive so any savings that can be made by SME’s are worth considering. Greener energy use is an even more attractive way to save money because of the positive impact it has on the environment and the message it sends out to the marketplace about the ethos of your company. As I would recommend with your household bills you should review your costs each year to make sure you have the best deal.”

Wondering about where to start saving energy for your business? Take a look at our pick for the top 3 eco-friendly companies…

  1. British Telecom

This company is leading the way in the UK when it comes to being kinder to the planet by investing heavily in wind farms and reducing the amount of employee travel by increasing video conferencing and flexible working. BT has ambitious plans to cut carbon emissions by up to 80 per cent by 2016.


  1. Ikea

Not only was Swedish furniture manufacturer IKEA the first major retailer to switch off incandescent lights in its stores but it also only sells energy efficient lighting.


  1. IBM

OK so we all know that computers certainly do not help us keep our energy costs down, however IBM cut electricity consumption by 5.1 billion kilowatt houses (enough to power a small town) between 1990 and 2000.