The challenges that face small to medium sized business (SMEs) on a day-to-day basis often involve finding new ways to save money. This is not just because we are in a financial crisis. Cutting costs is always good business practice, but it’s a particularly good practice for the SMEs out there that find their margins under pressure.

There are a variety of ways in which a company can save a little bit of cash here and there. Some are more drastic than others. But perhaps a good place to start is by looking at the cost of energy. Not only is business electricity often an untapped source of savings, making savings here also has few, if any nasty side effects. After all, no tears are shed when cutting the amount electricity a business uses and cutting the price of business electricity may even raise a cheer, but cutting the number of people in the business…

All businesses require a supply of electricity, so business electricity is not a cost that can be cut out completely. But it can be controlled. The first step is to understand your business electricity use and contractual arrangements.

Of course the size, scale and nature of the operation have a huge bearing on business electricity use. To uncover saving opportunities, small business owners should ask questions like when do we use most of our energy, how much energy do we use, what type of tariff are we on and when is our business electricity supply contract due for renewal.

This understanding will put the company in a great position from which to approach an energy supplier and work out which energy deal will best match their needs. There are a number of energy suppliers from which to choose but some in particular offer a choice of different contracts. These contracts can afford SME business owners the following benefits:

Protection from price rises during your fixed contract period

Discounts for paying by monthly Direct Debit

Contract lengths to suit your needs, varying from 1 to 3 years

Automatic price review after your fixed price period ends, so you don’t have to worry about re-signing

A dedicated Business Team on hand to answer your questions and help you manage your business electricity account and provide energy efficiency advice

Looking into an electricity supply contract doesn’t take an awful lot of time and in these tough times every penny counts. So when even the smallest of savings can help ensure the financial security of a business, it is worthwhile reviewing your business electricity usage on a regular basis.