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Small Business Energy Audit: Find Waste Before Buying a New Tariff

A better tariff helps only with the price of energy. An energy audit looks at how much the business uses and when. You can begin with a simple walk-through and your own bills before commissioning specialist work.

Establish a baseline

Collect 12 months of electricity and gas bills if available. Record monthly kWh, billed days and any estimated readings. Note operating hours, occupancy and production levels. This helps you distinguish a genuine change in energy use from a longer billing period or a rate increase.

Walk the site when it is open and closed

Check lighting, heating and cooling, hot water, refrigeration, ventilation, computers and production equipment. The after-hours walk is often revealing: which systems must remain on, and which are running by habit? Ask staff what makes it difficult to switch equipment off without disrupting service or safety.

  • Lighting: note spaces lit when empty and controls that do not match opening hours.
  • Heating and cooling: compare timer settings with occupancy and look for simultaneous heating and cooling.
  • Equipment: identify standby loads and maintenance issues, but follow manufacturer and safety requirements.
  • Building fabric: look for obvious draughts or doors left open, then assess practical fixes.

Prioritise by evidence

For each idea, record the current behaviour, proposed change, owner and expected cost. Start with low-cost operational changes that can be measured. For equipment investment, ask for a credible estimate of annual kWh savings, installation cost, maintenance and payback. Do not treat an unverified percentage saving as a guarantee.

Review consumption after the change against a comparable period, adjusting for weather, occupancy and output where possible. A meter or interval data can help identify whether the change affected the times you expected.

Use the findings when you renew

Make the audit repeatable

Assign a named person to take a reading or export usage on the same day each month. Maintain a small log with kWh, opening hours, notable weather or production changes and actions taken. A reduction after a change is more convincing when the comparison period is similar. If you operate multiple sites, compare each with its own baseline before ranking them; a busy workshop and a small office have different normal patterns.

For a more complex site, a qualified assessor can investigate equipment performance and investment options. Ask for assumptions, measurement methods and expected maintenance costs in any proposal.

If you plan to reduce consumption materially, explain that when requesting quotes; an old annual estimate may no longer describe the site. Keep a record of the assumptions. Our business energy guide covers the supply side, while Ofgem’s business advice points to efficiency information and support.