How to manage your energy costs

A smart meter can identify the cheapest time to use energy and help operators identify the costliest part of a business, says Kerry Maisey

Caterers and the wider hospitality industry have shown incredible resilience throughout the pandemic, but there remains a lot of uncertainty, particularly due to rising energy costs, sparked by increases in wholesale gas prices. While it does feel like a daunting period, there are simple steps that can be taken now to manage costs, reduce energy consumption and tackle climate change, an issue that is of increasing importance to caterers and their customers.

In the catering industry, energy typically accounts for 4%-6% of operating costs, according to the Carbon Trust, so any energy savings made can have a big impact on the bottom line. Even amid current pressures, I would encourage any catering business to consider a smart meter installation. Smart meters pinpoint energy usage accurately, and upgrading your meter comes at no additional cost and with minimal disruption to your business. The installation usually takes less than one hour, and your power supply only needs to be switched off for around 15 to 20 minutes.

Over the past couple of years many premises were closed for periods of time, and businesses with a traditional meter that were therefore unable to provide a reading may have received estimated bills. Estimates can be affected by irregular events, leading to the risk of over or underpaying for the energy actually used. With a smart meter, your energy readings are sent directly to your supplier, so you can be confident that you’ll only be charged for the energy you’ve used when you use it.

Smart meters can also be linked to free energy management software, enabling you to analyse your energy usage across various time periods, from every half-hour to across a year. With this insight, patterns and emerging trends can be identified. It also makes it easier to spot areas to implement energy efficiency measures, such as installing motion sensors for lights, improving insulation and advising staff about turning equipment off when not in use.

Demonstrate your climate credentials

In recent years, there has been increasing concern from consumers about the climate emergency, which gained momentum with the COP26 summit and the growth of environmental activism. According to a recent SEC Newgate report, two-fifths of UK consumers said they had avoided a company’s products or services because they disagreed with the business’s environmental, social and governance practices. So, any business that can demonstrate its green credentials will have a competitive edge over its rivals. A commitment to keep energy use as efficient as possible is a statement to customers and employees that you are serious about the issue.

A smart meter is a way of future-proofing your business as the UK works towards net zero. The urgent need to cut emissions will see our heating and transport shift away from sources such as gas and towards electricity, which will mean increased demand on our power grids. And with an increasing proportion of power coming from renewables, flexibility will be essential for when the sun doesn’t shine or the wind doesn’t blow.

Smart meters will soon be a crucial tool in enabling you to see when the cheapest and the greenest time is to consume power. Increasingly, many companies are looking at generating their own power, for example through solar panels, or storing energy with batteries. If this is something you are considering, a smart meter will give you the information needed for such commercial decisions.

Catering is a vital sector of the UK economy and like other areas faces cost pressures. By making use of available technology, we can ensure it has a strong future.

Kerry Maisey is head of smart metering at SSE Energy Solutions