How can your business reduce its energy costs? Through effective energy management, writes Susan Rossney of Chartered Accountants Ireland

Many businesses across Ireland are finding it difficult to absorb rising energy costs. Traditionally, businesses would simply switch energy supplier. However, this no longer a viable option, given that costs are rising for most providers across the country.

Instead, the answer could lie in what’s called ‘effective energy management’. Official figures show that most organisations can save 20% on their energy bills by undertaking effective energy management, which is a proactive, systematic approach to managing energy use. It involves identifying and implementing simple, no-cost, and low-cost energy solutions for your business.

Effectively managing your energy will not only reduce your energy costs: it can reduce your business’s environmental impact, show your employees and customers that your business is operating sustainably, and even improve your businesses’ access to capital.

Understand your energy use

Your first step in understanding how and where you use energy in your business is as simple as checking usage on your energy bills. These will show your energy usage measured in kilowatt-hours (kWhs). The price you pay per kWh is the unit rate on your bill.

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Commission a professional energy audit

An energy audit is a good option for companies spending at least €10,000 on energy each year. Such audits establish how much energy your business uses, highlights which equipment and processes use the most energy, and identifies actions you should take to save energy. The Sustainable Energy Authority of Ireland has a list of registered energy auditors who can carry out an audit for you.

Create an energy action plan

Energy action plans are a good option for businesses spending less on energy a year. Creating an energy action plan typically involves outlining the practical steps your business can take to reduce energy consumption.

These can include only running energy-intensive machinery during off-peak hours, identifying places where heat may be escaping from your premises and sealing them up, and even just turning down your thermostat by one degree (this can cut heating bills by up to 10%).

Review your equipment

If you’re considering investing in new printers, appliances, and boilers, be sure to check their energy rating before you buy or lease them. Changing to LED lights and installing sensor-activated lights will also help.  Always choose energy-efficiency over price - you will recoup any investment in energy-cost reduction.

Invest in renewable energy

You may be able to generate energy in your building by installing solar panels. Also consider investing in a renewable source of heat, such as a heat pump. Grants are available from the SEAI.

Create a positive energy mindset

Involving your team will make sure that everyone in the business makes energy saving a priority. Examples of employee action include turning off lights and office equipment at night, only boiling the amount of water needed when using a kettle in a staff kitchen, not placing furniture or files against radiators, and even not leaving mobile phones on charge overnight.

Keep it going

Once energy efficiency is embedded into your business's long-term strategy, remember to monitor your energy performance regularly. Make sure to keep staff informed with updates on progress towards achieving targets.

• Susan Rossney (pictured) is Public Policy Officer, Chartered Accountants Ireland