5 ways to cut energy costs in retail and hospitality

For businesses in the retail and hospitality sectors, managing energy costs can feel like a never-ending challenge. Energy expenses are often a significant chunk of operating costs, but the good news is there are several strategies to help reduce your energy bills. By making a few changes, you could potentially save thousands of dollars annually and reinvest those savings into core areas of your business.
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Whether you manage a sleek hotel, a buzzing café, or a boutique retail store, here are practical steps you can take to cut energy costs without compromising your operations.

1. Shop around for competitive energy rates

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The energy retail market is competitive and offers an opportunity for smart operators to reduce what they pay. Don’t assume that your current energy provider is giving you the best rate. Take the time to assess your existing contract. Here’s how you can get started:
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• Compare alternatives: Reach out to other energy suppliers and ask for quotes to understand what’s on offer.
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• Negotiate a better deal: Use competitive quotes as leverage to negotiate better terms with your existing supplier.
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• Work with energy experts: Consultancy services like those offered by Zembl can take the pressure off by doing the legwork for you. Zembl’s experts are skilled in finding and negotiating the best energy deals while providing obligation-free insights that could lead to serious savings.
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2. Reduce peak power use

Energy prices fluctuate throughout the day based on supply and demand. Typically, using power during off-peak times is cheaper. To take advantage of this pricing model, consider the following strategies:
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• Shift energy-intensive tasks: Analyse your operations and reschedule energy-heavy activities, like running large kitchen appliances or laundering, to off-peak hours when possible.
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• Utilise meter data: Smart meters can provide critical insights into your energy usage patterns. Understanding when your energy consumption spikes can help you make informed scheduling decisions, maximising savings.
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• Automate where possible: Use automated systems like timers and smart controls to ensure equipment operates efficiently and only when needed.

3. Optimise demand charges

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Demand charges, often associated with peak energy usage, can escalate costs unexpectedly. Managing these charges effectively can bring significant savings. Here’s what to consider:
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• Review your tariff: Different tariffs offer different benefits. For example:
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• Time of use (TOU): Pricing varies by peak, shoulder, and off-peak periods.
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• Flat-rate tariffs: All energy use is charged at the same rate.
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• Demand tariffs: Include a separate demand fee based on the highest level of energy drawn in a given time frame.
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• Seek expert advice: Understanding demand charges and choosing the right tariff can be complex. By working with professionals like Zembl, you’ll have access to industry experts who can assess your specific circumstances and recommend the best tariff arrangements.
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4. Implement power factor correction (PFC)

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Another way to optimise your energy use and reduce costs is by ensuring your electrical systems are running as efficiently as possible. Power Factor (PF) measures how effectively your electricity is being converted into usable power. A low PF indicates inefficiency, which can lead to higher energy costs. PFC equipment can help improve this efficiency. Here’s how it works:
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• Reduce wasted energy: PFC ensures your equipment uses power more effectively, cutting down on unnecessary energy draw.
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• Avoid penalty charges: Providers often penalise businesses with low power factors. Installing PFC units can save you from these additional costs.
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• Invest in long-term savings: While there’s an upfront cost to installing PFC systems, the long-term reductions in energy bills often make it a worthwhile investment.
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5. Why choose assistance from energy experts?

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If you’re feeling uncertain about navigating the energy market or implementing these strategies, Zembl is here to help. Zembl specialises in energy procurement and consultancy, offering tailored support for businesses in the retail and hospitality sectors. Their services include:
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• Identifying the most cost-effective energy contracts for your needs.
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• Analysing meter data to uncover energy-saving opportunities.
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• Recommending actionable steps to improve energy efficiency.
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By partnering with Zembl, you can rely on experienced professionals to guide you every step of the way, helping you focus on running your business instead of stressing over complex energy challenges.
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Take control of your energy costs today

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Reducing energy bills doesn’t have to be overwhelming. By shopping for competitive rates, managing peak power use, optimising demand charges, and improving your power factor, you can make significant strides toward cutting costs. And with the guidance of trusted experts like Zembl, businesses can feel empowered to take the next steps toward smarter energy management.
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Start by assessing your current energy usage and identifying areas for improvement. Every small change adds up to meaningful savings, helping your business thrive both financially and sustainably.
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Want to download our full Retail & Hospitality Energy Guide? Click here.

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