Business mentor: A little planning can save a lot on power bills

Q. I was talking to a business contact the other day who has saved lots of money on power by making small changes to how it is used. How can I make some savings too, without reducing production?

A. Genesis Energy's general manager retail, Vince Hawksworth, replies:

There are many ways for small businesses to save energy. It just takes a little planning and some effort.

There are many practical steps businesses can take that don't have to mean production is affected. These actions can have a big impact on energy bills, so using energy efficiently is not only good for the environment, it makes good business sense.

The first step to using energy more efficiently is to check your energy consumption regularly. If you can't measure it, you can't manage it.

In many offices, computers and monitors use most of the energy. If the computer has to remain on, switch off the monitor wherever possible - it can account for up to 66 per cent of a computer's energy consumption.

Turn off all non-essential equipment at night and over the weekends. This can cut energy costs by up to 75 per cent. A seven-day timer can help.

Move photocopiers away from thermostats.

The heat produced by the copier will affect the thermostat and lead to poor control of the overall room temperature.

If a machine has an energy saving mode, switch this on.

Common sense says to switch off lights in empty rooms, and in offices this can mean meeting rooms, rest rooms and corridors, especially at the end of the day. This could save 15 per cent on an energy bill.

Replace conventional lightbulbs with plug-in CFL (compact fluorescent lamp) bulbs.

These use around 66 per cent less energy.

Adjust the thermostat so hot water is 55 degrees at the tap, and switch off hot water if your business is closed for two weeks or more.

Cafes, bars and restaurants can get a head start in saving energy by using gas instead of electricity in the kitchen. Gas provides instant and easily controllable heat, which is more energy-efficient.

Refrigeration is energy-intensive but maintaining equipment (such as door seals, hinges and catches) so that it runs at maximum efficiency can result in savings of around 30 per cent.

If your business uses specialist machinery that consumes a particularly large amount of electricity or gas, like a bakery, an energy audit may be a worthwhile option.

This involves an energy specialist visiting to identify energy-saving opportunities.

An audit can reveal significant savings that can be made by making specific improvements.

Recommendations can include quick-fix tips that can be implemented with little or no financial outlay, and longer-term measures needing financial investment, but with a payback time of less than three years.

To find out how your business can implement energy savings initiatives, visit emprove

* Email us your small business question. Answers are courtesy of Spring - A State of Mind for Business.

Genesis Energy

or 0800 GENBIZ (436 249)