As a business owner, one of my biggest concerns is making ends meet. So when energy bills start to climb, it can be a real strain on the bottom line. There are a few things you can do to help lower your energy bill, though.
First, make sure your building is well-insulated. This will help to keep the heat in during the winter and the cool air in during the summer. Second, invest in energy-efficient appliances and lightbulbs.
These may cost a bit more upfront, but they will save you money in the long run. Finally, be mindful of your energy usage throughout the day. Turn off lights and computers when they’re not in use, and try to avoid using high-powered appliances during peak hours. By taking these simple steps, you can help to lower your business’s energy bill and keep more money in your pocket
If there is no associated domestic supply energy companies can cut off the supply, and they may take this action sooner rather than later if you don’t contact them. Should this happen you could seriously jeopardise your ability to run the business effectively, and this would bring trade to a standstill.
Small business can’t afford its energy bill
In the United Kingdom, small businesses are struggling to keep up with rising energy costs. According to a recent survey, nearly 60 percent of small firms say they can’t afford their energy bills. This is having a major impact on business operations, with many firms cutting back on staff, hiring fewer hours, and even closing down altogether.
The problem is particularly acute in the winter months, when energy bills are at their highest. For many small businesses, the only option is to switch to a cheaper energy supplier. However, this can be a risky move, as it can be difficult to find a reliable and cost-effective supplier.
And even if a business does find a good deal, there’s no guarantee that prices won’t rise in the future. As a result, small businesses in the UK are facing an uphill battle to keep their energy costs under control.
If you’re in debt to your energy supplier
If you’re in debt to your business energy supplier in the UK, don’t despair – there are options available to help you get back on track. First, try contacting your supplier directly to arrange a payment plan. If that doesn’t work, you can also reach out to one of the many debt charities operating in the UK, such as National Debtline or StepChange but these are only for domestic users but can be used by sole traders.
These organizations can provide you with free advice and support, and can negotiate with your creditors on your behalf. There are also government schemes available that can help you reduce your debt, such as the Debt Relief Order scheme. So if you’re struggling to keep up with your energy bills, remember that you’re not alone – and there is help available.
What can you do if you can’t pay your business energy bills?
If you cannot pay your business energy bill, these might help slightly:
- Turn off all equipment where possible when you leave the building at night
- Monitor your business usage to see where most energy is being consumed
- Check that your bills are accurate
- Take regular meter readings if you’re in any doubt about the accuracy of your bills
- Don’t ignore any letters or demands from your energy supplier
- Seek professional insolvency advice
Rescue options to help with business energy bills
There are a number of rescue options if your business cannot afford to pay its energy bills.
These include:
Company Voluntary Arrangement
A company voluntary arrangement, or CVA, is a process whereby a company can reach an agreement with its creditors to repay its debts over an extended period of time. This can be a useful tool for companies that are struggling to meet their financial obligations but are not yet ready to enter into formal insolvency proceedings. In a CVA, the company proposing the arrangement must demonstrate to its creditors that it is capable of honouring the terms of the agreement.
If the creditors agree to the CVA, it will become binding on all of them. The key advantages of a CVA are that it can provide much-needed breathing space for a company in financial difficulty, and it can help to preserve value for creditors by avoiding liquidation. However, there are also some potential drawbacks, such as the fact that a CVA can be complex and time-consuming to put in place, and it may not be suitable for all types of debt. As such, it is important to seek professional advice before entering into a CVA.
Company Administration
The purpose of company administration in the UK is to protect businesses and employees from insolvency. This process can help companies restructure their debts, agree on new repayment terms with creditors, and avoid liquidation. In some cases, it may also be possible to negotiate better terms with suppliers.
Company administration can be a complex and difficult process, but it can be an effective way to avoid insolvency and keep businesses operating. If you are considering company administration, it is important to seek professional advice to ensure that this is the best course of action for your business.
Business cannot pay its energy bills and no chance of rescue?
When a business insolvency, there are often many creditors who are left unpaid. One of the largest creditor groups is usually the energy provider. This is because energy bills can be very expensive, and businesses often have no way to pay them off once they become insolvent.
As a result, energy providers will often try to recover their debts through legal action. However, this can be a lengthy and expensive process. In many cases, it is simply not worth the effort for the energy provider to try to recover the debt. As a result, insolvent businesses often find themselves stuck with unpaid energy bills. This can make it very difficult for them to get back on their feet and start fresh.
If your business is struggling to pay its energy bills due to the massive increase and feel you may need to close your business please contact us today via our online enquiry form or contact us via the telephone number above.
With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.