Fuel intentions

With energy costs soaring, energywatch's Karl Brookes offers some practical tips and advice on how to maximise efficiency and get the best possible deal for your business

Energy saving

1. Light: Use only the light you need. Turning off lights in empty rooms and corridors can save up to 15% on your lighting bill. Switching off machines - televisions and so forth - when not in use will also save you money. This can apply particularly at the end of a long working day, when there is a tendency to forget about turning off appliances.

2. Heat: Don't heat unused space. Set the thermostat at 19°C - costs rise by 8% for every 1°C increase.

3. Measure it: If you can't measure it, you can't manage it. Check your gas and electricity consumption regularly, and that your bills relate to use rather than an estimate. Get to know your present energy consumption; by reviewing the last 12 months' energy invoices, you should be able to build a picture of your performance. Crucially, ensure these invoices are based on accurate meter readings.

4. Energy supremo: It is a good idea to appoint an energy supremo to look after energy issues. In a very small business, this will be the owner/manager. In larger companies, staff involvement in any energy-saving programmes is often more effective if the supremo is among the core staff.

5. Staff: Involve key members of staff. Maintenance, kitchen and room-service staff are all energy users and are best placed to cut waste.

Consider incentivising staff by sharing the rewards of any saved energy costs among them. Encourage staff to review their own working practices and suggest ways to make their tasks more energy-efficient. Tell staff how much energy is currently consumed. Before staff can begin to save energy, they must be made aware of areas of potential waste in their own workplaces.

6. Targets: As your energy-saving programme gathers momentum, you will be able to plot current consumption against your initial consumption to highlight how much energy you have saved. Many hospitality businesses in the UK could reduce energy-consumption by between 10% and 40%.

7. Glow your own: Generating your own energy will always help, whether via a wind turbine, solar panels or even geo-thermal heating, but you may find that this is only really practical during a new build or major refurbishment. Ask your architect for help and advice on this issue, or contact the Carbon Trust.

Avoid common pitfalls

For many pubs, the complexities of actually running a business all too often lead to energy being forgotten until it shouts so loudly that the problem of a huge, unexpected and sometimes unjustified bill cannot be ignored.

The situation is not helped by the fact that many business users are unaware that they don't have the same rights as domestic consumers, even though their business premises may also be a domestic home.

Bills

l Make sure you know where your gas and electricity meters are and that you can reach them. Take readings both when you take on the premises and when you vacate them.

l Get into a habit of quickly checking every bill when it arrives. Notify your supplier at once if there are any discrepancies. Don't assume that your supplier has the right information about your business - many billing complaints can be avoided if the consumer makes sure that all the information on the bill is correct.

l Make a point of knowing the difference between estimated and actual readings, and that any estimates used by the supplier seem reasonable, based upon your energy-

consumption history.

l Make sure any payments you have made have been credited to your account.

l If you pay by direct debit, make sure the amount you are paying is not too much or too little by checking any estimated readings on your bill against the actual meter reading. All too often, if you have been receiving under-estimated bills, you will then receive a very large bill at the end of the year (or longer) that includes any consumption not covered by your direct debit.

l Make sure any meter serial number that appears on your bill matches the serial number on your meter(s).

l If you are providing meter readings to your supplier, but they aren't being used, query it.

l Keep your own record of any meter readings you take and the date you took them.

Regardless of any billing errors, you are liable to pay for all gas and electricity consumed. Suppliers may legally pursue billing claims for up to six years (five in Scotland). Be sure to verify and document your own consumption. You cannot rely on not having to pay a bill for your premises just because it is in somebody else's name.

If you are in financial difficulties and cannot pay your bill, you should contact the supplier as soon as possible - the longer you leave it, the worse it will become.

Contracts

If you are looking for a new supplier, there are a number of key questions to ask connected to the price you will pay:

l How often can the supplier change prices?

Most short-term contracts lasting no more than a year will be on a fixed price. At the end of the contract, your supplier will probably offer a new price and you can sign up again or move to another supplier if you prefer.

However, if you sign a contract for longer than a year, it's likely that the supplier will be able to change the price. Check how often this can happen and the notice the supplier has to give you of any increase. Once a year is most common, but it may be more often.

l How is any price increase calculated?

Sometimes suppliers will offer a price that changes in line with the wholesale price of gas and electricity. If it does, the likelihood is that other suppliers will be doing the same thing, as they are all subject to the same pressures. But if the supplier can raise prices at will, think hard before committing yourself.

l What does the quoted price include?

Check whether the price quoted is inclusive of all charges and costs, or whether there are any other costs for which you will be billed.

l Can you get out of the contract?

You should also check if you can cancel the contract without penalty if the price goes up - if not, then you may be unable to take advantage of better offers.

Put simply, the more rights you have, the better. Make sure that you are aware of them and use them when you want to.

In most cases, suppliers' rights to get out of a contract will be greater than yours. If you have some power to negotiate terms, try to ensure that these rights are also available to you. It will help you get a better service if the supplier thinks that you can go somewhere else.

Switching supplier

Once you've understood your contract and decided that changing suppliers is the right thing for you, there are a number of steps you can take to help the process run smoothly.

l Have the right information to hand when looking for a quote - the full address and postcode, the notice period with your current supplier, the serial number of the meter(s) and a copy of your latest bill. The bill includes the reference number for your meter, and will help the prospective supplier assess your annual consumption.

l Compare the different offers from suppliers, but remember to compare terms and conditions as well as price. These can vary widely, and will often affect the price - there may be rises built into the offer, and the length of the tie-in can affect the offer price too. Make sure that you're comfortable with these terms and conditions before choosing your supplier.

l The whole process takes between four and six weeks - if you are changing supplier and they are unable to take over your supply by the end of the contract with your current supplier, the latter is able to charge you at a more expensive, out-of-contract rate, which makes it all the more crucial to do everything in enough time. If you are not satisfied with the service pro