Top Five Reasons Why Rising Energy Costs are a Burning Issue for SMEs

Published: 27 July 2011

Maria Anderson

Energy bills are going to increase by 10 � 15% year-over-year for the next few years. With energy bills accounting for up to 1/5 of SMEs running expenses, you can�t afford to do nothing about the increased costs.

1) There’s no way to avoid rising energy costs

Electricity bills are going to increase 10% - 15% year-over-year for the next few years. With Australia’s perpetual increase in energy usage, fossil fuels becoming more limited, the need to reduce greenhouse gases and the requirement for new power stations to meet peak demand, there’s just no getting around it.

What can you do?

switch off your computers at night
use natural light whenever possible
turn off fridges over extended holiday periods and long weekends

2) The increased costs will affect your profitability and competitiveness

Energy bills can account for up to 1/5 of an SME’s running costs. You also can’t afford to ignore it - or ignore what your competitors are doing about it. SMEs who are implementing sustainability practices are becoming preferred suppliers to other energy aware businesses; they are reaping the financial benefits of decreased power consumption; and they are getting a head start on competitors with a stronger cost advantage. �

What can you do?

Install power switches on office appliances to turn standby power off over night
join an organisation like CBID (Capalaba Business District Improvement) to create alliances with other sustainability focused local businesses and improve profitability through sustainable business practices
get an electricity tariff review to ensure that you are paying the best market-rates available for electricity

3) Energy efficiency is becoming regulated

The newly released Queensland Energy Management Plan (May 2011) outlines how the government plans to avoid the equivalent of 1000MW of necessary electricity generation and infrastructure, saving the state more than $3.5 million by 2020. New, regulated standards for buildings and appliances, along with financial incentives and penalties, will be implemented to ensure all businesses become energy aware.

What can you do?

buy more energy efficient appliances
install energy efficient lights
use automatic controls like sensors and timers.

4) Energy reduction is a journey

‘The journey of a thousand miles starts with a single step’, the old proverb says.� So, too, with energy use reduction.� Sustainable Marketing Services took their first step a number of years ago.�Maria Anderson, Managing Director, says: “Initially when we started our sustainability journey it seemed overwhelming. Our three biggest learnings on the journey have been:

break it up into bite size pieces
humans have great intentions, but automation is more reliable and leads to greater energy and cost savings
get support from government organisations and other like-minded businesses.”

What can you do?

measure your current energy usage
identify areas that need improvement
create a simple, one page energy management action plan.

5) Energy efficiency seems like a tough, lonely mission

It can be hard to get started and to stay on track if you try to do it alone.�With a little bit of research, you’ll be able to find free government resources, supportive business groups and local sustainability consultants who can help.

What can you do?

get help from the DERM’s EcoBiz program
contact a sustainability consultant, like Envirocom or FWR
consider certification -� like NoCO2 certification from the Carbon Reduction Institute

Want to know more about Sustainable Marketing’s journey and experiences?�We’re happy to share what’s worked and what hasn’t.�We can also help you implement sustainable marketing that helps you achieve more with less.�Give us a call on 1300 699 085.�Let’s meet for a coffee to share our sustainability challenges and successes!

Maria Anderson is a professional marketer with extensive experience in helping growing businesses develop and implement best practice marketing solutions. She has more than 12 years experience in marketing plans, marketing campaigns, branding, sales processes, product launches, advertising, online marketing, direct mail, brochures, client surveys, sponsorships and client relationship programs.