Demand for offices down by a third as energy prices rocket
Wednesday 16th March 2022
The number of businesses looking for office space has plummeted since the latest energy price cap increase announcement.
In the month since Ofgem announced that the price cap is due to rise by 54% for households, new research has revealed that the number of businesses searching online for office space has dropped by nearly a third (31%).
Our analysis of Google search data has found that monthly searches for ‘office space’ have dropped by 230,000 from 734,000 to 504,000 in the month from February to March.
Small businesses are not covered by the price cap, which means their energy bills could increase even more.
With the ever rising cost of living impacting businesses all over the UK, Andy Dodd, Managing Director of Novuna Business Cash Flow has listed five top tips to help reduce your business’ energy bill:
1. Be aware of how much energy you use
Without knowing how much energy you use, it’s impossible to know where to start when reducing your energy bill. What gets measured, gets managed, so make sure you take regular meter readings to stay on top of your usage and have something to compare your price cutting efforts against.
2. Dial down the thermostat
Fighting over the thermostat is commonplace in the office, and no one wants cold and disgruntled employees, but if you can turn down the heating by even one degree, it can help make a big difference to your energy bill over the course of a year.
3. Turn things off in the office
When people are rushing to leave the office at the end of the day, making sure everything is turned off might be at the bottom of their priority list. Encourage your team to turn off their monitors and computers at the end of each night and don’t forget to turn the lights off to help keep your bill down.
4. Use energy efficient lighting
In many offices, the lights are on all day when they don’t need to be, leading to a higher electricity bill in the process. Certain bulbs are much more energy efficient than others and motion sensors are also a great way to ensure that lights are not left on unnecessarily.
5. Encourage flexible working
There has been a big shift towards remote and flexible working since the pandemic, and this can play into your hands when it comes to energy bills. For many businesses, a presence in the office is important, but if you can let your team work at home even for just one or two days a week, that will mean less energy being used at the office.
Editors Notes
*Analysis of Google Trends Search data using Glimpse
About Novuna
Novuna is a trading style of Mitsubishi HC Capital UK PLC, the new name for Hitachi Capital (UK) PLC and a leading financial services company, authorised and regulated by the Financial Conduct Authority (FCA). We have over 1,600 employees, £6.3bn of net earning assets and over 1.3 million customers across five business divisions; Novuna Consumer Finance, Novuna Vehicle Solutions, Novuna Business Finance, Novuna Business Cash Flow and our European division specialising in Vendor Finance. For over 40 years, formerly as Hitachi Capital (UK) PLC, we have worked with consumers and small to medium enterprises (SMEs) as well as corporate multinationals in the UK and mainland Europe, enabling millions of consumers and businesses to achieve their ambitions.
From 1 April 2021 we became a wholly owned subsidiary of Mitsubishi HC Capital Inc., strengthening our relationship with one of the world's largest and most diversified financial groups with over £60bn of assets.
Novuna Business Cash Flow
Novuna Business Cash Flow, the new name for Hitachi Capital Invoice Finance, provides cashflow finance solutions to SMEs across a wide range of sectors in the UK, allowing businesses to release cash from unpaid invoices within 24 hours.
With remote digital on-boarding through FLi, its unique platform, and flexible approach to contracts, Novuna Business Cash Flow was recognised for Best Service from an Invoice Finance Provider at the 2021 Business Moneyfacts Awards.
Novuna Business Cash Flow is a trading style of Mitsubishi HC Capital UK PLC, part of Mitsubishi HC Capital Inc., one of the world’s largest and most diversified financial groups, with over £60bn of assets.
