Winter is on its way, and while we can’t predict exactly what the weather will bring, there are some useful tactics that businesses can employ to hedge against seasonal cold snaps.
And, for small to medium-sized enterprises (SMEs) in particular, simple changes can make a big difference.
Researchers from the Centre for Economics and Business Research (CEBR) analysed data from the Met Office and ONS, and found that periods of very cold weather hit GDP by an average of 0.6%.
That may not sound hugely significant, but it means minimum temperatures just one degree Celsius lower than average will take an average £2.5 billion a quarter out of the economy.
Cold weather means more staff calling in sick and transport infrastructure suffers, hitting productivity, while shoppers are also more inclined to stay at home, so demand falls.
Costs also increase, like heating, and a well-heated workspace isn’t just about comfort, it’s also essential to maintain productivity levels and staff morale.
An energy audit is a sensible first step to figure out what could be done to save money and keep your staff and customers warm this winter.
It looks at the equipment and processes that consume energy in a business, as well as its premises, to understand where energy is being used.
An audit can suggest areas where an investment in more modern machinery or changes to practice could permanently reduce energy use, helping smooth out the winter consumption peak.
Smart meters, which replace standard meters, send suppliers meter readings directly and put an end to the hassle of giving your own meter readings and receiving estimated bills.
We offer a free online tool which provides personalised information, alerts and energy efficiency tips to our smart meter customers so they can make some simple changes to business practices.
We've already installed more than 500,000 smart meters in British businesses, including more than a third of our SME customers, and we want to do more.
We are also trialling a smart thermostat with businesses to help them control their heating and hot water from a mobile app, anywhere and at any time.
Taking proactive steps
Winter weather means there is also a greater potential for things to go wrong. We see calls from businesses needing emergency repair work spike by as much as 60% after the summer ends.
So before the winter starts in earnest, it’s prudent to take some proactive, preventative steps to help ensure your business is not interrupted as a consequence of the cold.
One way to help avoid unpleasant and costly disruptions to your business is to sign up to a service plan to help maintain gas appliances and heating systems.
Depending on the type of plan, your appliances can benefit from check-ups to ensure they are working safely and efficiently.
We are testing intelligent boiler technology and remote diagnostics to help detect faults in boilers. In doing this, we can fix issues before they have a major impact on businesses.
Help with heating
Our research found a typical retailer could see a 40% increase in gas use from autumn to winter, which grows to 63% for an office-based business and 70% for a manufacturer.
So if those extra costs are a concern, it’s worth contacting your energy supplier to see if they can help.
There are so many ways to stop your business feeling the chill this winter. Don’t get caught out in the cold.
By James Bennett, business service director, British Gas