British Gas Business News

Over half of businesses (57%) believe their energy suppliers use too much complex jargon that could be hindering them in getting the best deal for their energy, according to new research commissioned by British Gas.

The research¹ reveals that a quarter of businesses (24%) say they spend too long dealing with their energy bills, contracts and pricing renewals because of the jargon that is used by suppliers. An additional 25 percent say they would need to spend more time trying to understand their energy use and contracts to feel confident they are getting the best deal.

In a tough economic climate when business owners are short on time, many businesses risk missing out on the best price for their energy by not having a full grasp of the common terms used in contracts and billing. For instance, over three quarters (77%) of businesses say they can't fully explain the term 'deemed pricing', even though being on a deemed price contract means paying a higher price for energy compared to normal contract rates². A third (34%) of businesses are now calling for the energy industry to publish guides on managing energy in simple and easy to understand language.

In response to this frustration, British Gas has worked with Plain English Campaign to launch Energy Made Simple - an industry-first online guide to help businesses better understand information about the energy they use to run their business. The online guide has been developed with the help of a panel of British Gas business customers and the account managers who speak to businesses about their energy use every day.

Energy Made Simple explains complex energy topics in easy-to-understand language, covering all areas of energy ranging from drilling to billing. It also offers advice and tips on how business can implement energy-saving measures to cut their bills. According to the research, only a fifth (20%) of businesses are currently taking energy-saving measures, despite savings of up to 20 percent³ on offer for those that do.

Angela Needle, Head of Energy Consultancy at British Gas Business, said: "We know that our small business customers are short on time and want to feel confident they're getting the best deal. But we recognise that as an industry we've not always helped them do this. By launching Energy Made Simple, we want to give our business customers the tools to quickly understand their energy contracts and how to manage their use effectively. Through working with our customers to develop services like this, we're committed to helping businesses take control of their energy costs so they can spend more time on the important job of running their business, safe in the knowledge that they're in control of their energy usage."

Marie Clair from Plain English Campaign said: "In this tough economic climate, we know that business owners are desperate to fully understand the contracts they have with their suppliers and to feel assured they can get the best deal. By working with British Gas on Energy Made Simple, we've been able to help them explain some of the terms and processes that cause businesses the greatest confusion, in simple and easy-to-explain language. We hope that more suppliers now follow British Gas's lead in being this clear and transparent. This will help small businesses focus on running their businesses rather than wrestling with confusing jargon."

Dolly Sharma, restaurateur at Apni Rasoi said: "I don't have much time to spend looking at my energy bills. There are so many other things that I have to prioritise to keep the restaurant going so I just pay them without giving them much thought. And the idea of trying to implement any energy saving measures seems such a huge task that I feel I don't have the time to start thinking about it. However, having been shown the Energy Made Simple online guide, I do think it would help me as the straightforward language and clear graphics explain a number of complicated issues really clearly - I'm looking forward to using it."

The Authors' Licensing and Collecting Society (ALCS) in London is an example of a business that has spent time developing a better understanding of its energy and is now seeing the benefits through the savings it is making to its bill.

Dawn Ryan from the ALCS said: "We have found that by taking the time to fully understand our energy consumption, making sure we keep a regular eye on our bills and implementing a number of simple, energy saving measures, we have saved up to 50% on our energy costs since 2009. But not every business owner has the time to do this. I'm certain that many small businesses, just like ours, would benefit from online guides such as Energy Made Simple which give clear, straightforward advice from their supplier on how to manage their energy."

For more information on Energy Made Simple, visit: www.britishgas.co.uk/simplebusiness

Notes to Editors

For further information please email britishgasbusiness@bluerubicon.com or call Andrew

Webster, Hannah Nicholl or Faye Williamson on 020 7260 2700

About British Gas

• British Gas has over 1 million business supply point contracts and 650,000 customers, making it the largest energy supplier to small businesses in the UK. For more information go to: http://www.britishgas.co.uk
  
  
• British Gas launched a panel of over 1,000 of its business customers in October 2011 to help it tackle common frustrations businesses have with energy providers and create services that can help businesses reduce energy costs in a way that works for them.
  
  
• Today's launch follows previous announcements in response to feedback from the customer panel. In November, British Gas announced its commitment to not back bill its business customers further than one year by 2014. The business is also committed to installing at least 200,000 smart meters for its business customers.
  
  

¹About the Research

• The research of 1,000 small and medium sized businesses was commissioned by British Gas and carried out by One Poll in June 2012
  
  
• Common energy jargon that businesses find confusing:
  
  
• 77 percent of business cannot fully explain deemed pricing
  
• 63 percent of businesses cannot fully explain out of contract
  
• 60 percent of businesses cannot fully explain unit price
  
• 69 percent of businesses cannot fully explain kilowatt hour
  
• 64 percent of businesses cannot fully explain standing charge
  
• 58 percent of businesses cannot fully explain estimated bill
  

²When you move to a new premises, the existing energy supplier to the property will temporarily put a company on a 'deemed' rate by default. Deemed rates are generally higher than the rate you'd get in a contract you've actually chosen. This is because deemed rates are short-term rates and the energy is bought short term.

³20% reduction figure based on the polling of 1,000 businesses in December 2011 carried out by Research Now and commissioned by British Gas.

Common examples of unnecessary electricity that businesses aren't aware they even use include; lighting car parks at the weekend when no one is at work; pubs keeping fruit machines switched on 24 hours a day every day of the year; retail units in shopping centres keeping display lights on when the centre is closed; and vending machines left switched on in offices overnight and at weekends.

The first step for businesses to cut their energy use is to understand when and why they use electricity. Simply switching off car parking lights at the weekend when they aren't needed could save a British Gas customer £1,200 on their annual electricity bill.

To help put businesses in control of their energy use and therefore costs, British Gas is today launching an industry first service - Business Energy Insight to show businesses how, when and where they are using electricity and proactively help them to save money through energy efficiency measures.

Dawn Ryan, from The Authors' Licensing and Collecting Society (ALCS), was one of 100 customers who trialled the service to help British Gas make sure it worked best for businesses. ALCS began using Business Energy Insight in 2011, and with the support of its account manager's energy efficiency expertise, has nearly halved its electricity bill.

Ms Ryan said: "Managing our costs has been our number one priority since the economic downturn. But before signing up to the trial, I had no idea of the amount of money I was wasting by not paying closer attention to my electricity bills. Business Energy Insight has opened my eyes to this."

"Now I'm working with my account manager Dom Stanford to take steps to reduce the amount of money I use on things like heating and other electrical appliances when they're not being used. For example, we identified a particularly energy intensive piece of equipment that was needlessly using a lot of power. By addressing this, we saved a £9,000 over the course of the year. It's making a real difference to the business as we can invest these savings elsewhere."

The Business Energy Insight service has been created in response to findings from customer feedback, including from the British Gas 1,000 strong business customer panel. The panel has called on the company to provide accurate bills and help businesses bring down their energy costs.

By signing up to Business Energy Insight, businesses will have:

• A smart meter installed on their premises that will put an end to the hassle of estimated bills.
  
  
• 24 hour access to an online dashboard showing hourly, daily, weekly and monthly electricity usage that can be used to identify up to 10% savings through behavioural changes. With simple efficiency measures - such as investing in timers - the savings will be even more.
  
  
• Support from over 100 account executives specifically trained to help customers implement energy saving measures.
  
  

James Caan, entrepreneur, CEO of Hamilton Bradshaw Private Equity and spokesperson for small and medium enterprise businesses said: "In this testing climate, our economic growth is dependent on businesses finding the money and time to invest in new growth opportunities. But the rising operational costs of running a business are acting as a major barrier to this. By using a service like Business Energy Insight to understand energy usage and take steps to reduce it, businesses can free up vital capital to invest in new ventures that can contribute to their future success."

Marc England, Managing Director of SME Energy, British Gas Business, said: "Small and Medium sized businesses are the backbone of the UK. They tell us that reducing their costs is essential to competing in a challenging economy. However, many don't understand their electricity costs, and how they could reduce them. Business Energy Insight has been designed by businesses for businesses to provide our customers more accurate bills and the insight to reduce their costs and improve their competitiveness."

For more information on Business Energy Insight, visit www.britishgas.co.uk/businesslive

As part of the launch, British Gas has today launched a campaign which will follow five businesses on their energy saving journey, using Business Energy Insight. These businesses include a pub, high street bakers, chocolate factory, local convenience store and manufacturing business. To follow their progress, visit www.britishgas.co.uk/businesslive.

The Sydney Arms - Dorchester

Rick Green, owner of the Sydney Arms in Dorchester, a pub and B∧B, has just started using Business Energy Insight.

Rick said: "Like most businesses, big investments on energy efficiency measures are not currently priorities for us. We have a number of fridges behind the bar as well as a large cellar which needs constant chilling. Business Energy Insight will start to open our eyes to how we currently use energy and will make us think about how we can manage our usage better to reduce our bills as a result. In addition, the initial energy-saving suggestions from the BEI team have been really valuable - they could definitely make a difference in the long term."

Barnstaple Bakery - Barnstaple

Robert Purcell from Barnstaple Bakery in Devon, has just started using Business Energy Insight.

Robert said: "For a while now I've been concerned about how much energy we use but wasn't aware of how to bring our costs down by making small changes. Our ovens, chillers and walk-in freezer have to be on all day and are very expensive to run. Using this Business Energy Insight tool will help us understand how energy is being used and will allow me to educate the staff about how small actions can save energy and reduce bills."

JEB Precision - Northwich - Cheshire

Mike Bebbington from JEB Precision Ltd, a manufacturing business from Northwich, Cheshire, has just started using Business Energy Insight.

Mike said: "Reducing our overheads is always a priority for us, but especially in the current economic climate. As a manufacturer, our electrical motors and electro-discharge machining processes use up a lot of electricity so any insight into how we can become more efficient is welcome. British Gas Business Energy Insight is the start of identifying the options available to us."

Michton Chocolate Factory - Swansea

Tony Wadley from Michton Chocolate Factory in Swansea, has just started using Business Energy Insight.

Tony said: "Being a chocolate factory, we have large pieces of energy intensive machinery, such as chocolate moulding machines and production lines. In addition, we have large areas of lighting which need a lot of power. Being able to understand how all of these contribute to our energy spend is going to be really helpful. Hopefully Business Energy Insight will show us where we are wasting energy and how we can become more efficient."

Costcutter retailer - Southport

Douglas Fawcett-Brown, Costcutter retailer in Southport, has just started using Business Energy Insight.

Douglas said: "The store is open from early in the morning to late at night, seven days a week. We are constantly using energy - our chillers have to be on 24/7, whilst we also spend a considerable amount on running our lighting and computer equipment. There are definitely savings to be made, we just need help to identify where we can become more energy efficient."

The key elements of the Fair Billing Commitment are:

• British Gas will publish a Fair Billing Charter which will detail the rights and responsibilities of both the customer and British Gas. The Charter, which will also advise on how customers can be more 'energy conscious' and consider what they consume and whether they are being billed correctly, will be communicated to all our small business customers.
  
  
• Over 200,000 smart meters are already in use by British Gas business customers, and we are committed to installing over 100,000 more in 2012. This is substantially more than any other supplier. Smart meters are central to ensuring bill accuracy as they automatically send actual meter readings each month, ensuring customers only pay for the energy they use and avoiding billing inaccuracies.
  
  
• By 2014 British Gas will not 'back bill' our small business customers further than one year, if British Gas or industry processes are at fault and the customer adheres to the Consumer Focus principles to avoid back billing. Next year we will put in place a limit of three years reducing to two years in 2013 and one year in 2014. This is similar to the voluntary rules in place for residential customers.
  
  
• British Gas is committed to dealing with back billing cases sensitively and in addition to limiting the back bill period, we will offer proportional payment plans where requested and a smart meter where possible.

Kanat Emiroglu, Managing Director, British Gas Business said:

"I understand the concern and frustration that billing inaccuracies can cause our customers. It is particularly important now, when small and medium sized businesses are the growth engine of the economy that we ensure our customers get accurate bills and only pay for what they use. British Gas is committed not only to getting the basics right every time, but to encouraging our customers to use the additional insights better billing and smart metering can bring to manage and reduce their bills."

The driving force of this objective is the Directive on Energy Performance, which states that members of the EU must apply minimum requirements to the energy performance of new and existing buildings and require the regular inspection of boilers and air conditioning systems. But what does this mean in practice for the UK and your individual business energy» legal commitment?

The UK government has passed new legislation to make Energy Performance Certificates (EPCs) mandatory for all commercial buildings at the point of construction, sale or rent within the next year. Display Energy Certificates (DECs) will also be required for buildings occupied by public authorities and by institutions providing a public service.

EPCs are designed to help improve your business energy efficiency, by rating your premises on a scale of A to G. Each certificate is accompanied by a recommendation on how to improve the efficiency of the building and reduce its carbon footprint. If your business uses a half-hourly meter (HHM) and annual electricity consumption of 6,000 MWh (around £500,000) you will also need to buy allowances to offset your carbon emissions and report your consumption to the Government on an annual basis.

The UK has also issued a Carbon Reduction Commitment (CRC), which builds upon the Climate Change Levy (CCL) introduced in 2001. All energy used in the non-domestic sector is subject to a fee; for a full list of levy rates see the HM Revenue and Customs website» Charities, those using renewable energy and other types of businesses are exempt from the levy, but it is also possible to financially benefit from the CRC scheme. At the end of each year your business will be leagued against similar businesses on your carbon emissions improvement. You will receive a recycling performance payment at the end of October, with a bonus or penalty depending on your position in the performance league table.

The increased pressure to reduce your business energy usage can turn into a bit of headache, but it comes with the benefit of significantly reduced utility and heating costs. If you're in doubt of your legal requirements, contact your gas and electricity supplier; British Gas even have a dedicated 'Energy360' service to help businesses of all sizes improve their energy usage. The service will assess your building structure and find out if you qualify for the CRC, completing and applying for the necessary certification to help avoid unnecessary penalties. You can also monitor your carbon emissions throughout the year and record in an evidence pack, whilst forecasting your costs to help you better manage your utilities budget.

Resources

http://ec.europa.eu/energy/efficiency/buildings/buildings_en.htm

http://www.britishgas.co.uk/business/

Wholesale oil makes up about 70-80% of the cost of your gas bill and 40-50% of your electricity bill. The business costs for power suppliers also include transmission, distribution, storage, and load balancing costs, which have consistently been rising in recent years.

Many of the big household suppliers generate a proportion of their energy, but also buy a large bulk of traded gas and power from wholesale markets. Gas and electricity is traded on 'contracts' set by energy firms and each supplier employs a team of traders and analysts who closely monitor the market prices throughout the day. These experts will then decide on the amount of energy to be bought in advance and the amount to be bought on the current market value, leading to huge fluctuations in wholesale prices.

Siobhan Lismore, senior reporter for market information provider ICIS Heren, explains that there are many factors that will affect the wholesale market:

´The price is affected by weather, the stability of the oil markets, the supply situation and many other factors. Energy companies will buy a supply in advance or on the spot price - so it's misleading to compare contracts.´

Hence whilst the world market can act as a guideline, deciding whether your business gas bill is fair is not as simple as comparing your costs to the average spot price of wholesale energy. If there were a sudden drop in temperature, for example, wholesale prices would go up and then fall once the weather reaches a normal level again. As the market is liquid, different suppliers also never buy energy at the same time, which is why some companies have to make price increases and some can delay them.

Yet whenever there is a clear and continuous upward trend in wholesale energy prices, it is inevitable that these increases will eventually be reflected in business gas prices» Predicting the price of crude oil in 2011, however, is far from an exact science and involves balancing huge economic factors. The damage of the BP oil spill will weigh heavily on the thoughts of the industry for many years to come and may inspire new government policies both in the USA and beyond to further restrict underwater oil drilling. Alternative methods of oil extraction, from tar sands for example, are more expensive and a shift in the focus of drilling will undoubtedly lead to higher prices. The world is also struggling to recover from the global recession, with people and businesses spending less to preserve capital. If the economy improves and demand for overseas products increase once again, global oil consumption from large ships carrying goods around the world will drive crude prices up.

As it stands, price hikes are a stark reality in 2011. Ofgem have predicted that wholesale gas and electricity prices will continue to rise over the coming months, estimating that by the spring UK gas purchase costs may increase by 13%.

Resources

http://www.thisismoney.co.uk/bargains-and-rip-offs/household-bills/article.html?in_article_id=523336&in_page_id=510#ixzz1G7JYhWKh

http://www.energychoices.co.uk/what-will-happen-to-energy-prices.html

http://en.wikipedia.org/wiki/Electric_power_transmission

http://www.suite101.com/content/2011-price-of-crude-oil-forecast-and-prediction-a270927#ixzz1G8DUMSnT

Office Overheads

Recent research has found that reducing business energy bills by a fifth could save you the equivalent of a 5% increase in sales. The Government's Carbon Reduction Commitment (CRC) is designed to help businesses large and small use their energy more efficiently, with recycling performance payments as an added incentive to reduce your carbon footprint. Your energy supplier may also be able to help you find the best ways to reduce your business gas and electricity » costs, for example British Gas' Energy360 scheme.

IT Solutions

Another way to cut down on the cost of running your office is to review your IT equipment and software. Buying used computers, furniture, copiers and printers can save you 60% and there are hundreds of business auction sites out there dedicated to getting you the best deal. You may also be spending more than necessary on your email software; GoogleMail is a free alternative to Microsoft's expensive packages and can be accessed from mobile devices. ClamWin Antivirus offers free protection for your computers on a par with many of the pain software options and there are reliable and cheap online bookkeeping solutions that will save you hundreds on accountancy fees alone.

Employee Economics

An incredible 82% of UK employees have admitted to stealing from the workplace. Although this is often just a case of taking an envelope or biro for personal use, even seemingly inconsequential thefts can add up to a significant cost over time. Make sure you keep a complete record of all office supplies and equipment and communicate the seriousness of theft to your workforce. Offer incentives such as bonuses or an office party to further motivate your employees to keep tabs on how much paper and other resources they are using.

Reduce Your Tax Bill

If your company is new in the area, you may be paying a higher building tax rate than your neighbours. Community authorities can often negotiate rates with expanding businesses when pressed, so make sure you're getting the best deal. If you're home-based, make sure you don't overlook crucial tax deductions. Whilst you can claim a portion of your rent or mortgage interest and utilities as major business expenses, you can also deduct percentages from smaller costs such as house-cleaning and gardening.

Make Friends

Talk to your existing contacts about any client referrals they may be able to make for specific individuals who need your products and services. Ask for feedback from happy customers to use in presentations or informal conversations to encourage new business generation, or display in-store or online to increase customer confidence in your services. Contact your neighbors about forming a buying alliance for bulk purchasing discounts on office supplies, or you can negotiate swapping your products or services to improve your cash flow.

Resources

http://www.entrepreneur.com/money/howtoguide/article71318.html

http://www.fpb.org/hottips/273/10_best_money_saving_tips.htm

http://www.ribitsolutions.co.uk/5-ways-to-save-your-business-money/

But what exactly is the Green Deal and how can it help small businesses to cut carbon emissions and costs? Let's take a look at the key points:

Specifications

In brief, the Green Deal proposal is a new financing structure designed to allow owners of domestic and non-domestic buildings to install energy efficiency measures through a 'pay as you save' framework. Companies accredited by the Government will provide 'green loans' to allow owners to install loft insulation and replace inefficient appliances, such as boilers and freezers, with newer models. Repayments will be made through business energy » bills only once the green technology begins to show savings in energy and costs.

Francis Wood, a policy advisor for the Federation of Small Businesses, believes that many resource constrained owners will welcome the initiative as a good method of 'greening' their buildings:

'In the short term, it's just deferring payment, but in the long term they'll have dramatically lower energy bills because the repayments have already been made.'

Application Process

Business leaders choosing to take advantage of the deal will follow a three-step process beginning with an independent energy survey of the property, which will provide advice on the best energy efficient improvements to be made. Owners will then be able access Green Deal finance, although it has not yet been announced through which providers. The Carbon Trust, which already manages interest-free loans to businesses for energy efficient upgrades, is a likely contender. Qualified installers, through accredited schemes overseen by the Government, will then make the property improvements.

Job Opportunities

Aside from reducing business electricity and gas costs, Huhne predicts that the Green Deal will create thousands of green jobs, particularly in the insulation industry. The cost of 1,000 apprentice places will be funded by the Deal and British Gas has already pledged to employ 3,700 green jobs by the end of 2012.

Kanat Emiroglu, director of British Gas Business, commented: 'We are talking to the Government about its energy efficiency scheme for small or medium-sized enterprises...I am hoping it will be introduced in a way that's not bureaucratic.'

What's the Catch?

With sustainability continuing to play an increasingly important role in growth strategies for small business, interest-free loans are undoubtedly an attractive option for owners. The scheme, however, will be attached to the business property rather than owner. Although this will allow small businesses to move to new premises if required, it may have a negative impact on business rental rates in the long-term. Francis Wood argues:

'If you make your building green it's cheaper to run and therefore more rentable. This pushes up the rental price and that can have a knock-on effect on business rates.'

With the Green Deal expected to launch in Autumn 2012, the Government will need to consider the financial arrangements in detail to ensure they do not impinge on a small firm's ability to grow their business and create jobs.

Follow the progress of the Green Deal and find out more information at
http://www.decc.gov.uk/en/content/cms/what_we_do/consumers/green_deal/green_deal.aspx »

Resources

http://www.ltsbcf.co.uk/news/2010/September/green-deals-to-help-small-businesses-invest-in-sustainable-growth/

http://www.greenwisebusiness.co.uk/news/deal-or-no-deal-will-the-green-deal-be-good-for-small-business-1908.aspx

http://www.buildersmerchantsjournal.net/news/news.asp?id=7588&title=Huhne+pledges+1%2C000+apprenticeships+under+Green+Deal

http://www.is4profit.com/small-business-news/20101217-governments-green-deal-will-help-small-businesses.html

Speaking to The Telegraph, Mr Laidlaw, the chief executive of British Gas, warned that hikes in prices for business and residential customers is 'a possibility':

'We hope to delay that for as long as possible but we've only got to see the volatile events in the Middle East.'

UK gas prices have jumped to their highest level since October 2009 following the protests in Egypt, Yemen, Algeria, Bahrain and most recently the turmoil in Libya. Oil prices have hit a record high since the beginning of the global recession, reaching prices as high as $119.89 per barrel.

Yet why exactly does unrest in the Middle East drive up business gas prices» for the rest of the world? Let's take a look at the current areas of unrest and their potential effect on the energy market:

Iranian Riots

Recent protestors in Iran have been calling for the release of opposition leaders Mousavi and Karroubi, who were taken to an undisclosed location. Officials are refusing to reveal the politicians' whereabouts, arguing that it is an internal matter.

As one of the founding members of the OPEC, Iran holds the third largest proven oil reserve in the world, with 137.6 billion barrels of oil as of January 2010. It is also the second largest producer of oil after Saudi Arabia with 3.8 million barrels of oil per day. If the recent riots develop into a real threat for the Iranian regime, an increase in anxiety amongst oil traders would undoubtedly lead to a hike in crude oil price.

Libya Turmoil

As the US and Europe begin to take a more active role in the Libyan crisis, Muammar Qaddafi remains adamant to stay in the country and fight the rebels. There has already been a significant reduction in oil and gas production in Libya, however Saudi Arabia has already moved to compensate the loss by increasing its own oil production. This may have some long-term residual results, such as the continuous decline in Libya's oil production in the future.

Egyptian Protests

The riots in Egypt could send oil prices up sharply if the market concludes that the instability could spread to Saudi Arabia and the Gulf.

Political instability in the world's highest producing areas of crude oil will always raise concerns about supply and prices. According to Robert Zubrin, the president of Pioneer Astronautics, with the world struggling to repair its fragile economy, high oil prices could send the world into a deep recession for years to come. At the same time other ESAI analysts point out that demand growth in the energy market has been exceeding expectations lately. While demand growth is contributing to higher oil prices, that same demand can be interpreted as a positive economic signal.

Resources

http://en.trend.az/capital/energy/1821520.html

http://www.tradingnrg.com/oil-prices-outlook-2-march/

http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/8346446/UK-gas-bills-may-rise-on-Middle-East-riots-warns-Centrica-chief-Sam-Laidlaw.html

1. Set your computer to switch to 'sleep' mode during periods of inactivity to save 10% of the substantial electricity it uses and make sure you switch off all your office appliances at the end of the day.
2. Buy energy-efficient light bulbs. Although the initial cost is slightly higher, compact fluorescent bulbs use only ¼ the energy of an ordinary incandescent bulb and last 8-12 times longer.
3. Open the blinds and make good use of natural lighting. There's no point flicking on the switches if the windows will let in free light (and give office morale a boost).
4. Wrap your office boiler in an insulating jacket, which costs just £8 - £15 yet can save over 450kg of CO2 over the year.
5. Organise the work kitchen. If the fridge is next to a hot appliance, it has to work harder to keep your lunch at the correct temperature. Making sure it's regularly defrosted also significantly reduces its cost to run.
6. Only fill the kettle with the water you need. If you boil a full kettle for just one mug you're using 8 times more electricity than necessary (and losing valuable minutes of you coffee break)
7. Only turn the dishwasher on when you leave and ask your employees to use one mug per day.
8. Clean your air-conditioning filters and save 5% on the electricity used. Energy is lost when systems have to draw air through blocked filters.
9. Don't overheat rooms. During the winter an office room should feel comfortable at between 16-19°C and reducing the temperature by just 1°C saves 8% in electricity.
10. Plug air leaks around doors and windows with caulk and weather stripping. Caulk costs less than £1 per window and weather stripping is under £8 per door.
11. Make sure radiators aren't blocked by furniture and check that they are bled regularly.
12. Read your annual energy report and shop around for the best tariffs. Switching supplier could save you up to 70% on your bills without making any other changes.
13. Rent your roof and generate your own power. If your building is eligible, energy suppliers such as British Gas will pay to install solar panels, providing your business with free electricity.
14. Motivate your employees. These measures will only save your business money if everyone is following them. Lead by example and offer incentives for your staff to do the same.
15. Get free advice. The Carbon Trust provides a Save Energy starter pack to help you track these simple energy saving measures. The pack will be tailored with tips relevant to your business and comes with posters and stickers to help encourage your staff to take part in your initiatives.

Resources

http://www.whatyoucando.co.uk/electricity_reduce

http://www.powerscorecard.org/reduce_energy.cfm

http://www.nowletsgetstarted.co.uk/quick_ways_to_reduce_your_business_energy_bills.aspx

Read your Annual Energy Statement

All energy suppliers are now obliged to send you a summary each year of the amount of energy used and the cost to your business. The Annual Energy Statement will tell you which energy tariff you are currently on and if there are any discounts available, how much gas and electricity you have used and what you can expect to pay in the next year.

Remember Your Renewal Date

Even in the current economic climate many business owners are simply letting their contracts roll over each year and subsequently are paying far too much for their gas and electricity. Understanding and remembering your renewal date is vital if you want to make sure that you are always on the best deal. Most businesses are in fixed contracts, which mean you can only switch at the end of the contract during the renewal period. If you're on a rolling contract your supplier may even be able to adjust the cost of your business electricity» and gas without telling you, which could lead to huge bills.

Compare the Market

All a supplier needs is your business address and meter number to provide you with an alternative online quote in seconds, which could save you up to 7%.If don't want to trail through the comparison websites, some suppliers such as British Gas guarantee to beat any current quote you already have.

Plan before you move

If you switch business premises you will automatically be put on a high tariff called a 'deemed rate', because a contract is deemed to exist between you and the current supplier of your new building. If contacted ahead of the moving date, many energy suppliers will be able to switch your tariff beforehand to ensure you get the best deal straightaway.

Invest in a smart meter

New smart meters are now available to larger businesses, allowing you to monitor your energy usage and send readings directly to your supplier. The meter will also show which appliances are costing your business the most money, helping you to better manage your utilities budget.

Manage Your Payments

You can get further discounts by paying your electricity and gas invoices by fixed monthly direct debit, usually 2 - 4% of the bill. And if you take both gas and electricity as a business dual fuel tariff, additional reductions are usually provided.

Purchase Insurance

As the cost of repair can be rather high and carry a long wait at busy times, it's advisable to have some kind of insurance cover for your central heating and utilities. Discount and special rates are often available when taking out a new energy tariff.

Resources

http://www.britishgas.co.uk/energy-efficiency/smart-meters/smart-meter-benefits.html

http://www.switchit4u.biz/news/118/business-electricity-and-gas-pricestariffs-and-suppliers-switch-and-save

http://www.britishgas.co.uk/business/products-and-services/business-electricity.html

http://www.kingpin-seo.co.uk/press-releases/how-business-energy-price-comparison-can-be-a-big-money-saver-for-smes/194511

Yet with the cost of running a business continuing to rise, many companies are struggling to stay financially afloat without the added worry of becoming 'greener'. Climate change, however, poses a very real threat to businesses across the world. From the financial impact of climate taxes and carbon offsets, to the environmental impacts of increased risk of flooding and storm damage, the commercial world needs to prioritise reducing its carbon footprint. Moreover, reducing business energy» usage can improve your profitability by reducing costs, boosting your marketing positional and branding, and improving your sustainability overall.

Research by the AXA insurance has revealed that the smallest companies have the most to do when addressing climate change; whereas 85% of businesses are aware that climate change is a problem for the world, 46% of small businesses actually think that climate change is blown out of proportion. Luckily there are a number of tools to help you better understand and reduce your carbon emissions.

Carbon Footprint Guide

The Carbon Trust» has published a new guide (Carbon Footprinting: the next step to reducing your emissions) to assist businesses to understand and measure the impact of their carbon emissions, explaining key footprint concepts, organisational boundaries, and the difference between direct and indirect emission sources. The guide also introduces two types of carbon footprinting that affect businesses, one that measures an organisation's overall activities, and one that looks at the life cycle of a particular product or service. The Carbon Trust can also provide interest-free loans to make the necessary improvements to your business premises.

Carbon Calculator

There are a number of tools online designed to work out the size and impact of your business' carbon footprint. The Government provides a fast and reliable calculator» that will measure your emissions in a few easy steps.

Annual Energy Statement

All energy suppliers are now obliged upon request to send you a summary each year of your business electricity and gas costs. The Annual Energy Statement will tell you which energy tariff you are currently on and if there are any discounts available, how much gas and electricity you have used and what you can expect to pay in the next year. The coalition government has also pledged to provide all businesses with smart meters, which will allow you to see your energy usages and costs in real-time and discover the most inefficient areas of your building.

Valuable Advice

In addition to the Carbon Trust, Business Link» is a Government-run online website offering valuable advice on how to simply and quickly cut your energy wastage; from turning off office equipment when not in use, to advanced waste management techniques. Many of the suggested steps are just plain common sense, yet when planned systematically can add up to huge savings for both your business and the environment.

Resources

http://carboncalculator.direct.gov.uk/index.html

http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1083609730&type=CAMPAIGN

http://www.nickleby.co.uk/news/2010/01/small-businesses-should-not-let-recession-affect-energy-efficiency

http://www.fco.gov.uk/en/news/latest-news/?view=News&id=21577835

http://www.carbontrust.co.uk/Publications/pages/publicationdetail.aspx?id=CTV043

http://www.britishgas.co.uk/business/energy-efficiency/legal-obligations/carbon-reduction-commitment.html

http://www.warwickshire.gov.uk/Web/corporate/pages.nsf/Links/245EAC2B55BC474A80257304005E192D/$file/AXAClimateChange.pdf (p. 5)

The price change will affect around 126,000 British Gas Business customers, or 19% of our total customer base.

Customers on contract deals will not be affected in any way.

The price change has been made necessary by the rapidly increasing cost of gas and power in the wholesale market. Since the start of the year, wholesale prices have risen by 16% and 20% respectively for electricity and gas.

To help affected British Gas Business customers, the company is offering them the opportunity to switch their tariff accounts to energy contracts, which lock-in a competitive price for one or two years, thereby protecting them from volatility in the external market. It is also offering a range of further discounts on direct debit use, dual fuel and multi-site offers, as well as access to energy efficiency advice and Purchase Power, its customer benefits programme.

The 15.4% rise is based on standard tariff, rounded average across all regions, payment types and meter types at an average consumption of 27,791KWh gas and 9376KWh Electricity.

While not all of these smaller and medium sized businesses will survive, the enormous aggregate spending power of those that do will see them play a vital contribution towards economic recovery. The report reveals they spend £1.1 trillion on their supply chain annually – 49% of UK business expenditure, and account for £1.6 trillion of total national business turnover, greater than the whole of the FTSE100.

The research was conducted by economic consultants Cebr, and commissioned by British Gas Business, a key business electricity, gas and energy » supplier to 500,000 smaller and medium sized business customers. The country's leading energy company recently introduced a scheme called Purchase Power, using its own purchasing power to negotiate substantial deals and pass on those discounted rates to its smaller business customers. The report encourages other large companies to follow suit with similar initiatives to support their own smaller business customers and supply chain.

The research report, launched today, gives the most comprehensive picture to date of the economic value such businesses generate:

• Significant spending power - smaller and medium sized businesses spend £1.1 trillion on goods and services annually and account for 49% of UK business expenditure. For every person employed in a smaller and medium sized business, £81,000 a year flows into suppliers of these businesses
• Total turnover - they generate annual sales of £1.6 trillion, compared to £1.4 trillion generated by FTSE 100 companies
• Extensive employment - they employ 13.6 million people compared to 9.2 million people working for large companies (of which 5.3million are employed by FTSE 100 companies)
• Tax take - they account for 53% of business tax contributions

However, the findings also identify the key challenges that threaten to constrain this growth potential:

• Input prices - reflecting raw material costs have increased by almost three times as much than for large businesses which benefit from economies of scale.
• Cash flow and difficulties accessing capital are dampening SME confidence. Bank lending to smaller businesses has decreased by 4.5% in the past year and one in three smaller and medium sized businesses are concerned about late payment from customers.

In response, the report's authors have recommended three key steps to ensure smaller and medium sized businesses live up to their potential:

1. Where similar firms share common input prices in their supply chains, smaller and medium sized businesses should engage in collective or aggregate purchasing of intermediate goods. For example, British Gas Business recently introduced a free scheme called Purchase Power using its own purchasing power to negotiate substantial deals with major suppliers and pass on business discounts worth up to £10,000 per year to its 500,000 small business energy customers.
2. Greater tax relief for businesses to encourage more business start-ups and growth in smaller and medium sized businesses. This could be achieved through placing limits on the amount paid in corporation tax through raising capital allowances and reducing the small profits rate of tax, lowering the amount paid in National Insurance Contributions and providing tax breaks on profits during the early years of start-up. These measures will stimulate investment and growth, and foster entrepreneurship.
3. Improved financial conditions and prompt payment, which improve financing conditions for smaller and medium sized businesses, such as encouraging the public and private sector to adopt automated payment methods instead of traditional payment by cheque and become signatories of the Government's Prompt Payment Code.

Kanat Emiroglu, British Gas Business managing director, said: "In terms of spending power and economic contribution, total turnover and job creation, small businesses are engines of economic growth. But unless we create the right conditions to allow them to thrive, economic recovery remains far from assured. Supporting their vital contribution to the recovery, through schemes such as Purchase Power, is not just the right thing to do, it makes good business sense – when small businesses thrive they pay their bills on time. Their success and ours go hand in hand."

Charles Davis, managing economist at Cebr, said:"This report shows the sheer scale of the contribution that smaller and medium sized businesses make to the UK economy and how this compares to their larger counterparts. The world of big business community and government must work together to support these businesses to thrive and safeguard economic success and support smaller businesses throughout the supply chain. This is especially important as the Government cuts public spending and the private sector must drive the economic recovery."

British Gas Business Purchase Power is a free scheme for its smaller and medium sized business electricity, gas and energy customers, saving them up to £10,000 a year on business critical services. Register at
www.britishgas.co.uk/purchasepower » to find out more.

About Purchase Power

• The Purchase Power scheme is free to join and is available to all British Gas' 500,000 small and medium sized business electricity and gas customers
• £10,000 is the average annual saving a customer can expect to make if all deals are taken up. This is based on an average sales value for a SME customer.
• The partners taking part in the scheme are: The AA, AXA Insurance, AXA PPP Healthcare, Caboodle office supplies, Demon, Dyno-rod, Hertz, Royal Mail and Parcelforce Worldwide, Sage, THUS and Vodafone.
• New offers will be introduced regularly, with four new deals each quarter, and the offers will be sizeable and exclusive to BGB customers.

About British Gas Business

• British Gas Business is the B2B unit of British Gas and has 500,000 SME customers, making it the largest energy supplier to small businesses in the UK.
• British Gas has the lowest carbon intensity of any of the major UK energy suppliers in terms of tonnes of CO² emitted per megawatt hour of electricity supplied to customers. For more information go to:
  www.britishgas.co.uk »

Over the past 12 months British Gas Business has been listening to its customers and conducted a wide-ranging CRC education initiative in both the private and public sectors to help companies and organisations understand the impact of the legislation, and how best to take advantage of the early action metric.

Responding to feedback from customers who are concerned about the impending legislation, with many in need of support around CRC, the new service was created and will be delivered by the Energy360 team from British Gas Business. CRC Manager will make it easier for businesses not only to comply with the new CRC legislation, but also to use it as an opportunity to drive cost efficiencies from within.

CRC Manager will assure compliance with the regulations, in the context of a business energy reduction strategy. The service provides:

• Collection and recording of all emissions data
• Quantification and monitoring of energy usage and CO2 emissions throughout the year
• Forecast annual carbon emissions (electricity, gas and fuels used on sites)
• Clarity on the complexities associated with organisational structure issues
• Creation or refinement of carbon and energy strategy
• Tailored recommendations on how to reduce energy and carbon usage and help to implement them

Jeff Whittingham, Director of Energy Services at British Gas Business, said: "There is confusion amongst many UK businesses and public sector organisations around the CRC energy efficiency legislation and how the different variables will impact their business - from understanding league table metrics to the number of allowances they will need to purchase, making compliance difficult. Often there isn't even an individual within the business who is tasked with monitoring and adhering to these regulations. By allowing companies to plan their energy reduction strategy, based on accurate results and forecasts, CRC Manager both helps with compliance as well as using the opportunity to commercial advantage."

"The service forms part of a wider package of energy management services providing advice and support on energy and fuel efficiency, and puts companies back in control by helping them comply with the new Government scheme".

According to the Government, the CRC Energy Efficiency Scheme is expected to affect up to 20,000 UK organisations ‐ specifically businesses with an annual electricity bill of over £500,000, all of whom must make individual commitments towards reducing their carbon emissions.

Alongside the requirement to reduce their carbon emissions, the annual October publication of a CRC performance league table will put the spotlight on the best and worst performers. As the legislation comes into effect, this will create both reputational benefits and risks depending on businesses' position in the league table.

For more information about CRC Manager, please visit www.energy360.co.uk/crc »
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The bill has been created based on research, customer feedback and competitor benchmarking and now represents a clearer, simpler and smarter energy bill.

Stuart Hough, Head of Marketing and Sales at British Gas Business, said:
"The new look bill is the latest in a series of customer-focussed developments we are making this year. Customers have told us they want less clutter and industry jargon, clearer instructions and an all-round easier-to-read design from their bill. Making changes to the old billing system has therefore been a priority for us. British Gas Business has now created a bill that makes businesses' lives easier".

The bills offer more obvious instructions, thereby simplifying SMEs cash flow management, and focuses on what customers need to know and the next steps they need to take upon receipt of their bill.

For more information about the new look bill, please visit: www.bgbnewbills.co.uk »
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The move will help meet the Government's goal to reduce carbon emissions in schools help local authorities comply with the Carbon Reduction Commitment Energy Efficiency Scheme (CRC).

From today, all publicly funded schools will be invited to apply for a free energy display meter giving an accurate real-time reading of how much electricity a school building is using. Schools will be able to use this data to inform decisions about how to make energy savings.

Schools account for around 2 percent of UK green house gas emissions, with 9.4 million tonnes of carbon dioxide emitted annually by schools in England ¹. The energy display meters, which are provided and installed by British Gas, are expected to help reduce consumption by 10-15 percent, around 1 million tonnes of carbon dioxide, and it is estimated that it will save an average 900-pupil secondary school more than £3,000 a year on fuel bills alone ².

Partnerships for Schools will be responsible for overseeing the delivery of the project, working in partnership with British Gas, as the selected private sector partner. This contract comes on the back off British Gas being awarded the Buying Solutions framework to provide Automatic Meter Reading (AMR) services across electricity, gas, water, and aM&T/ sub-metering solutions to the public sector market.

The initiative will also see school children becoming experts in energy efficiency, as pupils will be able to see in real-time on large 'dashboard' displays how their behaviour, such as switching on lights, computers and electrical equipment, affects the school's electricity use. The project is being supported by the British Gas Generation Green educational programme which has created a range of learning resources, including lessons plans, which are specifically designed to be used alongside the 'dashboard' displays.

Speaking at Pimlico Academy, one of the first schools to sign up to the initiative, Secretary of State for Children, Schools and Families, the Rt Hon Ed Balls MP said:

"School children of today have a real desire to become the environmental champions of the future - and we need to harness this interest. This £12 million investment will enable schools to lead the way on an energy revolution, helping staff to reduce energy consumption, and helping children to better understand the importance of their behaviour in tackling environmental issues."

Kanat Emiroglu, Managing Director of British Gas Business said:

"British Gas is committed to supporting the public sector in meeting government targets to reduce carbon emissions and we are proud to be at the forefront of the biggest revolution in energy efficiency since the switch to natural gas in the home in the 1970s.

British Gas is the largest provider of advanced and smart meters to the public and private sector. Smart and advanced metering, combined with our Energy Services and our multi-site expertise, are already showing how our customers can be put back in control of their energy usage, helping them use less energy, cut carbon emissions, comply with government legislation and save money."

Tim Byles, Chief Executive of Partnerships of Schools, said:

"The use of display meters is a great way to engage young people's interest in the environment and energy efficiency. In Building Schools for the Future schools where display meters are already in operation, there has been a real enthusiasm for using the information generated in lessons and changes to behaviour both in schools and at home. We're looking forward to making this opportunity available to more schools across the country."

The display meters project was announced today in conjunction with an awareness campaign designed to help schools reduce their overall energy costs. It will be supported by a broad coalition of public, private and third sector partners, all of which have a shared interest in reducing energy usage.

The Department for Children, Schools and Families has a long term goal for schools to be sustainable by 2020. The Zero Carbon Task Force was set up in 2008 to advise on how best to achieve this, and two key recommendations made by the Task Force in March 2009 were the use of energy display meters and a comprehensive awareness campaign to help change energy efficiency behaviour in schools.

All primary and secondary state schools in England will be eligible to apply for a free sub-meter. An information pack will be available to all schools, and schools will be given instructions for how the meter should be used, and guidance on how it can support teaching and learning. For more information, schools can visit: www.teachernet.gov.uk/energydisplaymeter »

British Gas has the largest smart meter trial in the country with more than 50,000 smart meters installed. The company is poised to begin the roll-out across Britain, and help households and businesses use less energy, cut carbon emissions and save money.

The Government's decision means that British Gas will be able to create a new metering business unit of 2,600 new jobs by 2012. The company's new 'smart energy experts' will lead the roll-out of smart meter technology for British Gas, and help customers with the best energy efficiency advice in their homes.

Smart meters will bring a transformation in customer service, with an end to estimated bills and the need to take physical, onsite meter readings. They will also pave the way for new technologies for renewable microgeneration, and improve the way energy is generated and distributed through the 'smart grid' of the future - designed to optimise energy use across the UK.

The provision of smart metering and energy solutions is a key focus for British Gas Business, as it helps its business customers manage their energy usage and meet regulatory requirements such as the Carbon Reduction Commitment Energy Efficiency Scheme.

British Gas Business is the largest provider of advanced and smart meters to UK businesses, with customers already benefiting from the new technology to reduce their gas and electricity consumption.

Jeff Whittingham, Head of Energy Services at British Gas Business said: "British Gas Business is committed to providing our customers with energy solutions and services to help them cut emissions and put them in control of their energy costs. Today's announcement is key to achieving this. We expect to have 300,000 advanced and smart meters in operation by 2012, and estimate we will reduce carbon emissions in Britain by an estimated 3.2 million tonnes each year. With smart meters and our energy services business we are confident that we can help our customers reduce their fuel bills, and energy consumption by up to 10 per cent."

British Gas Business was recently the only energy supplier to be selected for all five lots of a national contract to provide advanced and smart metering services and solutions to the public sector, worth an estimated £75 million, and spanning central government departments, NHS Trusts, local councils and schools.
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Buying Solutions, the country's national procurement service for the public sector, has awarded British Gas Business - alongside four other non-energy suppliers - the contract to provide expert metering services to a diverse customer base, spanning central government departments, NHS Trusts, local councils and schools.

British Gas Business was awarded high scores in all five lots of the AMR tender and will provide advanced and smart metering services across electricity, gas, water, and aM&T/sub-metering solutions.

The AMR framework will enable organisations to achieve value for money, sustainable procurement providing better value for the taxpayer and demonstrating how the public sector is leading the way in implementing the very latest energy efficiency technology and effectively managing consumption to save money and energy.

Energy is one of the largest controllable overheads in many local authorities with an estimated yearly energy use of at least 26 billion kWh - resulting in yearly emissions of more than 6.9 mega tonnes of carbon. Public-sector organisations, particularly local authorities, are increasingly expected to provide leadership in their communities on environmental issues and have a responsibility to demonstrate clear leadership in moving towards a low carbon future.

This development will go some way in helping the UK meet its legally binding targets of the Climate Change Act - reducing greenhouse gas emissions by 34% by 2020 and 80% by 2050 - and will help meet the Government's planned roll out of advanced and smart metering to all UK homes and businesses by 2020.

Jeff Whittingham, Director of Energy Services said:
"This is another significant step in the Government's planned roll out of advanced and smart metering - heralding the biggest revolution in energy use since British Gas converted all the nation's homes to natural gas in the 1970's. We know this technology has helped put our business customers back in control of their energy usage, helping them use less energy, cut carbon emissions and save money."

British Gas Business is the largest provider of advanced and smart meters to UK businesses, with 40,000 customers already benefiting from the new technology and expects to have over 500,000 advanced and smart meters in operation by 2012.

It has recently launched Energy360 - a full set of services to enable its customers to meet regulatory requirements, such as the Carbon Reduction Commitment Energy Efficiency Scheme, and monitor and manage their energy consumption. The service is helping organisations both in the private and public sectors to reduce their energy costs by up to 10 per cent.

For more information about the Buying Solutions framework, contact the British Gas Business team on 0845 026 7532 or by emailing BuyingSolutionsAMR@centrica.com ».

Further information about Energy360 and the services on offer, including a simple guide to energy management, is available at www.energy360.co.uk »
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All businesses have a legal responsibility to maintain a safe heating system and to have their boilers checked annually. Yet half (48%) of small businesses surveyed admit to having either no understanding or a limited understanding of gas regulations and compliance, or to being unaware of the Gas Safety Regulations 1998 (49%).

The implications of non-compliance could be devastating for a small business - the fine for breaching gas safety regulations is a maximum of £20,000 or in the worst case scenario, imprisonment. Businesses also risk boiler failure if they do not carry out regular checks on their boilers.

The British Gas Business survey revealed that in general, businesses have a limited understanding of the significant impact that a boiler breakdown can have on a business. On the other hand regular boiler checks can also help to lengthen the life of a boiler and maintain efficiency, but few businesses (one in five) make the connection between regular maintenance and the energy efficiency of their boiler.

In order to help businesses meet their legal obligations, maintain the efficiency of their boilers and avoid boiler and central heating breakdown, British Gas Business offers the British Gas BusinessCare range. Customers will receive a full annual safety inspection from Gas Safe registered engineers who will provide businesses with a detailed gas safety record to ensure compliance with Gas Safety Regulations. The range also includes unlimited breakdown call outs, a 24-hour hotline and parts and labour.

British Gas Business is partnering with a number of trade bodies, to ensure that businesses within industries that rely heavily on hot water and central heating are compliant with regulations and are not adversely affected by boiler breakdown.

Neeraj Bhatia, President of the Association of Retail Trade. "It is important that our members understand the importance of the Gas Safety Regulations. For the majority of our members the thought of a boiler breakdown would cause great loss of earnings, and the British Gas BusinessCare range provides our members with peace of mind and with an unbeatable reputation."

Eileen Lawson, Secretary General of the National Hairdresser's Federation, says, "The need for our members to be compliant with the Gas Safety Regulations and for them to have continual heating and hot water to run their businesses effectively are of paramount importance. The exclusive partnership between the National Hairdresser's Federation and British Gas Business for the BusinessCare product is an important step in achieving this. Our members recognise that boiler breakdowns cause disruption to both their business and customers and can be very expensive to put right. BusinessCare provides them with peace of mind and assurance that if that they experience difficulties, British Gas will be on hand every day of the year to help them."

Jeff Whittingham, Director of Energy Services, at British Gas Business, says: "As small businesses struggle through the recession, the last thing they want is to be faced with a hefty fine or a boiler breakdown. We offer British Gas BusinessCare, which automatically provides a regular boiler check, a 24x7 call out and annual safety inspection, so if your boiler does fail, you can have it fixed quickly and minimise disruption to your business."

With nearly 3 million (61%) small businesses stating that central heating and hot water is critical to the day to day operation of their business, boiler issues could lead to temporary closure and financial upheaval. On average boilers break down every 20 seconds and can be extremely expensive to repair - the average cost for a call-out, with replacement parts and labour is £350.

Pat and Gez Goddard, who run Lyndene Guest House in Blackpool, are an example of a business who rely on their boiler functioning effectively. Hot water is essential to their business for guests' showers and baths, preparing breakfasts and keeping the guesthouse spotlessly clean. A boiler breakdown could mean losing valuable income for every day they are unable to provide hot water.

After having had a number of issues with their boiler, for which call outs and repairs had cost around £300 a visit, Mrs Goddard decided to contact British Gas Business to see what it could do.

As part of BusinessCare, customers' boilers are given an annual safety inspection to look for any existing problems. As soon as Mrs Goddard signed up, Lyndene's boiler had the special attention of a Gas Safe registered engineer.

However, as essential as these regular checks are, unforeseen problems can occur, and a speedy response that helps businesses to keep running while problems are fixed helps to minimise any impact. In May, water pressure at the Lyndene Guest House began dropping, and the Goddards were able to rely on an immediate response from the BusinessCare team.

Mrs Goddard says, "As soon as the water in the boiler reached a certain temperature, it began pouring out of the overflow and we had to keep topping it up. The engineer came and did a temporary fix for the boiler that stopped the water from overflowing while parts came through and the repairs were completed two days later. This speedy response prevented us losing business."

ⁱ According to the research commissioned by British Gas Business, 49% of small businesses struggled to reference gas safety regulations other than the Health & Safety at Work Act of 1974. The Inter Departmental Business Register (IDBR), Office for National Statistics, states that there are 2.06 million small businesses in the UK- therefore 1.01 million businesses are not aware of gas safety regulations

ⁱⁱ British Gas Business commissioned quadrangle to survey over 350 businesses in the small businesses in the business services, hotels & restaurants, retail, education & health and manufacturing industries

To respond to this key business dilemma, British Gas Business has launched Energy Locum, an energy management subscription service to help businesses identify and implement energy management strategies. The service could help organisations to save 10% on their energy consumption.

A dedicated energy manager is vital if organisations are to save money, cut emissions and meet regulatory requirements. Whilst a dedicated energy manager can add value for organisations with large energy spends in excess of £1 million, organisations with lower, but significant spends, may face a difficult decision, as cost-benefit ratios can be lower. The issue is a tough one because the role is highly specialised so it often cannot be effectively delegated to managers from other functions.

As the current economic climate forces many organisations to question whether it is economical to recruit a full-time energy manager, Energy Locum is a unique service which offers businesses a dedicated energy manager on an ongoing subscription basis appropriate to their needs. This ranges from a few days per quarter to several days per month, and provides all of the benefits of an energy manger without the costs and commitment associated with employing one full-time.

Your Energy Locum can both develop and implement an energy strategy in line with your business' objectives. This may involve carrying out an initial audit on your organisation's energy use, making recommendations on ways to reduce unnecessary consumption, and implementing energy reduction measures, for example, through organising and project managing the installation of new equipment.

Your Energy Locum will take on much the same role as an in-house energy manager, providing specialist advice, developing a consistent approach across all areas of the organisation, and building strong relationships both internally and with external partners and suppliers.

Neale Phillips, Head of Energy Services at British Gas Business, says, "The role of energy manager is a highly skilled one, yet many mid-size organisations do not have a dedicated energy manager. Often responsibility for energy and carbon reduction falls to a facilities manager, a procurement officer or someone in the finance department, who don't always have the requisite time or expertise to maximise the benefits of an energy strategy."

"British Gas Business has recognised the gap in the market for a flexible energy management consultancy service that can be scaled up or down dependent on an organisation's individual needs."

Energy Locum is part of British Gas Business' new energy management offering, Energy360, a full set of services that will enable both customers' and non customers alike to manage their energy consumption and reduce it by up to 10 per cent.

The unique approach taken by Energy360 is based on four key pillars; monitoring to establish where a business is wasting energy, e.g. through the use of Automatic Monitoring and Targeting (aM&T); advising a company on where and how they can reduce consumption; implementing methods such as microgeneration technologies, and maintaining the solution, as taking care of energy is a process and not a one-off.

For more information on services in the Energy360 suite, visit www.energy360.co.uk » or call the Energy360 team on 0845 072 0234.
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BMS Solutions provides British Gas with an on-demand engineering capability and access to new skills, including scheme design and project management to fulfil the initial installation and upgrading of building control equipment. BMS Setpoint provides a maintenance and servicing facility for businesses.

British Gas has now made five acquisitions in the energy services and management sector in the past 12 months, providing it with a leading position and a strong platform for further growth. The previous business service acquisitions of BMSi and Energy and Building Management Solutions, combined with the renewable energy acquisitions of Semplice Energy and Solar Technology have already enabled British Gas to establish a specialist service and maintenance offering, along with the ability to provide energy advice audits, metering with building controls to optimise energy usage and renewable generation.

Phil Bentley, Managing Director of British Gas, said: "These recent acquisitions strengthen our leading position in the growing low carbon energy services market for business customers, and is a key plank in British Gas' growth strategy".
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This acquisition strengthens British Gas Business's position in the UK's expanding business energy services market, which it entered last year through the acquisition of BMSi. This market is expected to grow to £2 billion over the next five years as businesses seek to reduce energy costs and carbon emissions.
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The company welcomed the planned roll-out of the technology, which will herald the biggest revolution in energy use since British Gas converted all the nation's homes to natural gas in the 1970s.

Replacing the UK's 47 million gas and electricity meters with new smart meters will lead to households and businesses using less energy, helped by real time cost information on screen. Smart meters will also bring a transformation in customer service with an end to estimated bills and the need to take physical onsite meter readings.

British Gas Business is the largest provider of smart meters to UK businesses with customers already benefiting from the new technology to reduce their gas and electricity consumption and energy bills.

British Gas Business is currently working with Vodafone to install smart meters across its organisation, from high street retail outlets to remote radio base stations. Following a pilot trial in 700 sites, by 2010, British Gas Business will have rolled out 8,000 meters for Vodafone who estimates an overall cost saving of £2million and 5 per cent reduction in their energy consumption.

Badar Khan, Managing Director of British Gas Business, said: "British Gas operates the UK's largest smart meter trial with over 50,000 meters installed, already saving our customers money. We know this technology has helped put our business customers back in control of their energy usage, helping them use less energy, cut carbon emissions and save money. That's why we're delighted the Government is now moving forward with its plans for the roll-out of this technology throughout Britain."

Phil Bentley, Managing Director of British Gas, said: "Smart Meters will lead to the single greatest revolution in energy use since British Gas converted all the nation's homes to natural gas in the 1970s. They will ensure our homes and businesses are as energy efficient as possible, and they will open the gateway to new technologies for renewable electricity generation - and the 'smart grid' of the future."

British Gas will be studying in greater detail the draft proposals for the smart meter roll-out, which are set out in a consultation issued by Government this week.
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Almost one in four (23%) of small businesses surveyed feel a lack of information or advice is preventing them from doing more to improve their energy efficiency. A further 27% simply do not know what more they can do to reduce the amount of energy they use.

While 97% of small businesses are concerned about reducing energy consumption cost (38%) and time (34%) are seen as the biggest barriers to adopting energy efficiency measures.

In response, British Gas Business has launched a unique online assessment tool to help small businesses. The Business Energy Saver's Report provides a detailed summary of a small business's current energy usage and a customised action plan outlining how to reduce energy consumption and save money. It is a market leading tool that that allows small businesses to compare their energy usage against other businesses in the same sector and of a similar size.

Kanat Emiroglu, Director of SME markets at British Gas Business, said: 'Small businesses often lack the resources of larger organisations when it comes to analysing their energy usage and looking at ways to cut consumption. The Business Energy Saver's Report is free and easy to use, and can help small businesses identify how to cut their energy costs."

"Cost cutting is essential to small businesses as we move deeper into the recession, but by taking simple energy efficiency measures, companies could save up to 20% on their energy bills."
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The price cut is the second this year following a 10% cut in gas prices for our SME variable tariff customers in February. British Gas Business is the first major B2B supplier to announce two price cuts in 2009.

Kanat Emiroglu, Director responsible for Small Business said: "We understand the pressure many UK businesses are feeling in the recession so we're pleased to be able to announce a second price cut this year. This 10 per cent price cut for SME variable tariff electricity customers follows the 10 per cent cut in variable tariff gas prices in February."

British Gas Business recently launched it's SAVE campaign to help struggling businesses with a package of energy efficiency and practical support, including a free online energy savers report.

Renewal prices for our contract customers have been falling since the peak in wholesale prices last summer. Customers renewing long term contracts now are seeing prices 30 per cent cheaper than the peak in August 2008.

In 2009 the UK will import nearly 50 per cent of its gas requirement as North Sea reserves continue to decline; this will rise to 75 per cent by 2015. British Gas Business's parent company, Centrica will invest at least £15 billion by 2020 in new sources of gas and electricity production and storage to protect UK businesses from fluctuating wholesale markets.
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More than half (54%) of the companies surveyed by Datamonitor, on behalf of the UK's largest supplier of energy to businesses, admitted to problems in managing their cashflow.

To help its customers weather the economic storm, British Gas Business is launching a support package - SAVE (Small business Advice and Value Expertise). The initiative will support British Gas Business' estimated 750,000 small businesses with a more flexible approach to managing their costs and debt. The new service also provides advice and practical help on how they can reduce their energy costs through efficiency measures.

British Gas estimates that up to 40,000 small business customers may at some point require special assistance or flexibility on their energy bill payments during the recession and have launched a dedicated Expert Credit Solutions team to provide this support. The key components of the SAVE initiative are:

• A dedicated Expert Credit Solutions team to help advise, support and resolve debt problems for small businesses who are experiencing difficulty in repaying their energy bills
• Advice on how to reduce energy consumption via their dedicated account manager plus access to a tailored energy assessment (ESCO) based on a visit to their business by a trained energy assessor
• Energy Savers Packs: a pack of energy saving products including standby savers, energy saving light bulbs, radiator panels, and a Save the Worker Pack that includes posters, stickers and collateral to remind staff of the steps they can take to reduce their energy consumption, including switching off lights and machines when not in use - to help businesses encourage behaviour change amongst staff
• Use of a unique online assessment tool (Energy Saver's Report) to provide guidance on energy consumption reduction.

The research also revealed that only 36 % have taken steps to reduce energy consumption, which would help them reduce heating and power costs.

From 6 April 2009, all businesses will, for the first time, be able to get a free online audit of their energy consumption. As part of the SAVE initiative, organisations will be able to log on to https://britishgas.co.uk/BGB-EnergySaversReport/EnergyEfficiency/ and complete an Energy Saver's Report, which helps them to evaluate how much they are spending on energy annually and will benchmark their energy efficiency rating relative to other businesses of their size and type. The report offers hints and tips on ways to reduce consumption through both simple behaviour change and by investing in energy efficiency technologies.

Erica Russell, Business Link Adviser said: "Efficient use of energy is both environmentally good practice and also a simple and very effective way of cutting business costs, which is so essential in the current economic climate. Initiatives by the private sector to encourage energy efficiency and help businesses put this into practice are therefore welcome."

Kanat Emiroglu, Director of SME markets at British Gas Business, said: "We work with a lot of small businesses throughout the country, so we're pleased now to be able to provide helpful advice and support at a time when they really need it. Our small business customers can count on us to really listen to their circumstances and ultimately come to a resolution that works for each individual business. In addition, we've developed some tips on how organisations can become more energy efficient, which we hope will help small businesses weather the economic storm and emerge in better shape."
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British Gas Business will reduce gas prices for all SME tariff customers by 10 per cent on 19 February 2009. The price cut is the first by any major UK B2B energy supplier and mirrors the cut announced by British Gas's residential arm last week.

British Gas Business Managing Director, Badar Khan said: "In these difficult economic times for UK businesses we want to pass on falling wholesale gas prices to our customers as soon as possible. This price cut for tariff gas customers follows recent price falls for renewing fixed contract customers."

Around 50 per cent of SME gas customers pay on tariff rates. The remaining SME and all of our Corporate customers mostly have longer term fixed price contracts and guaranteed rates which provide price certainty. Renewal prices for these fixed term contracts are reviewed regularly and started to fall in the autumn of 2008.

British Gas Business buys large volumes of gas in advance to protect customers from the continuing volatility in the wholesale market. As a result, much of the gas we are supplying now was bought at last summer's higher prices.

In 2009 the UK will import nearly 50 per cent of its gas requirement as North Sea reserves continue to decline; this will rise to 75 per cent by 2015. British Gas Business's parent company, Centrica will invest at least £1billion a year on new sources of gas and electricity production and storage to protect UK consumers from fluctuating wholesale markets.
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All of BizzEnergy's 40,000 electricity customers across SME and Corporate markets, transferred to British Gas Business under the deal, will maintain their existing contract terms and conditions.

Badar Khan, Managing Director of British Gas Business, said:
"BizzEnergy customers can rest assured that we will ensure a seamless transition to British Gas Business, with no change to their energy supply contracts."
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E4B has around 40,000 business electricity customers who will now be transferred to British Gas Business as their deemed supplier under the rescue plan. British Gas Business assures all E4B's customers that there will not be any disruption to their electricity supplies.

Badar Khan, Managing Director of British Gas Business, said:
"We are working hard to ensure a seamless transition to British Gas Business for all affected customers and we will be contacting every customer to explain this. Existing British Gas Business customers are not affected."
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By joining forces with BMSi Ltd, British Gas Business will build on its existing energy expertise, and enter the market as the major player to offer its customers a truly integrated energy service, from supply to solution and management.

Energy services from British Gas Business will help organisations reduce energy consumption and implement carbon reductions, as global commodity prices remain high and carbon management is placed firmly on the corporate responsibility agenda. Building control technologies and automated monitoring and targeting (aM&T) will be central to the service, along with a host of green and carbon products.

Badar Khan, Managing Director of British Gas Business, said:
"As the global energy crunch continues to bite, we are exploring new ways of helping customers reduce their energy consumption. Our new energy services will include building control technologies, automated monitoring and targeting and smart metering which will help businesses track energy consumption and optimise the operation of energy-intensive systems such as heating, ventilation, air conditioning and lighting."

"We are the leading energy supplier to businesses in the UK and we continue to explore other acquisitions to further build the range, scale and reach of energy efficiency and low-carbon capabilities we can offer businesses. We will also be drawing on our experience in North America where we run a well established and successful energy services proposition."

BMSi is a UK leader in the installation and contract servicing of specialist building controls systems. These systems help improve building energy management performance and can deliver significant energy and carbon savings. The business currently employs a total of 69 people and its existing customers include BAA and O2. By combining the capabilities of BMSi with the energy expertise within British Gas Business it will be able to provide customers with new energy management propositions and products.
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