How to best protect your business against soaring utility costs…

Businesses of all sizes are challenged with increasing price inflation for electricity and natural gas. A combination of global events like the Russian invasion of Ukraine combined with increased demand as the negative economic impacts of the coronavirus pandemic wane have created the perfect storm that will likely see utility costs continue to rise for the foreseeable future. So what is a business to do? There are 4 basic strategies to consider including: 1) increasing efficiency, 2) changing the game with technology, 3) managing demand and 4) exploring wholesale pricing.

Increasing efficiency means reducing waste. Turning off unnecessary lights or using natural lighting or focused task lighting as alternatives can still ensure an inviting store front display or cozy sitting area. Unplugging unused electronics and appliances can reduce standby or so-called phantom power which can account for up to 10% of your overall use. Managing your thermostat can pay big dividends if you have electric heat – lowering your thermostat by 2 degrees can save 5% on your heating bill. For those businesses with on-site laundry, ensuring full loads and washing with cold water can provide fewer loads over time and allow appliances to run more efficiently. Refrigeration is a big cost for restaurants and food service, maintaining clean, air-tight door seals will keep the cold air in and the warm air out.

Changing the game with technology involves replacing older lighting with LED technology, upgrading to the most energy efficient heating and cooling systems or leveraging renewable energy options like rooftop solar arrays. The province’s Energy Savings for Business Program will help eligible Alberta businesses reduce emissions, decrease operating costs, grow their operations and become more competitive, while creating skilled jobs and boosting economic recovery. The program is designed to support the more than 160,000 small- and medium-scale enterprises in Alberta. All business and non-profits serviced by an Alberta electric utility are eligible, except for residences, some new construction projects, municipally, federal and provincially owned buildings, publicly funded institutions and Large Emitters. Find out eligible funding and explore some of the resource videos here à https://www.eralberta.ca/energy-savings-for-business/esb-program-overview/

Managing demand charges for medium and larger commercial businesses can result in significant savings. Business and commercial utility customers may have different charges on their?electricity bills: energy usage, delivery, and demand. Depending on how they use electricity, two businesses in the same service area can have the same electricity rate and use the same amount of electricity but have different utility bills because they have different?demand levels. Demand charges can make for up to 60% of the delivery charges on your business utility bill. The good news is that even 24/7 operations can reduce this cost. To lower your peak demand, set a schedule to stagger equipment startup. This way, you will avoid turning on all your appliances or machinery within a single 15-minute window. A new peak set in any 15 minute window can also set a new demand charge on your account for the next 12 months. Run equipment only when needed. Turn off unnecessary equipment at times of highest use or put some of it to "sleep" when it is not needed. Use high-efficiency appliances, equipment, machinery, and lighting. Right-size your equipment for the job. An oversized motor could increase your demand and cost you money.

Consider exploring working with other businesses in your area and industry to access wholesale energy markets. As part of our business retention and expansion portfolio, EDL will be hosting an energy management workshop on Thursday, June 2nd with a number of groups to discuss a collective approach and key business requirements to develop a robust wholesale market-based energy program. The workshop will include a near and long-term outlook on wholesale energy prices and delivery costs, which are influenced by environmental regulations and regional supply fundamentals.

The goal of the workshop is to identify a number of "early adopter" organizations to pilot the development of a wholesale pool for procurement of electrical and natural gas contracts. For more information or to register à https://entrepreneur.chooselethbridge.ca/ticket/view/5720