Leaders of small and medium enterprises (SMEs) are concerned about the cost of heating this winter, with some considering moving to a fully remote working model if challenges associated with the cost of living continue.
According to insights from Cadent’s latest Energy Diaries research programme, almost two in five (39%) SMEs are anxious about whether their organisation will be operating in the next five years. This rises to 54 per cent for those who say electricity costs are having one of the biggest impacts on them.
One in five (21%) confirmed that if their heating system broke, they wouldn’t be able to afford to replace it, while 67% are actively looking to reduce the amount of energy they are using. However, sustainability and being more energy efficient is still considered, with over half (55%) confirming they are looking to make improvements to make their buildings more energy efficient.
Claudia Kirlew is the Managing Director of a real estate firm that employs 50 people in London. She confirmed that she is keeping a closer eye on her energy bills than before, as the cost of living continues to impact decision-making.
Claudia said: “We have an office in central London and have seen our energy bills increase a lot recently. As a business leader, I have to plan and think differently, as I am noticing the electricity costs are particularly high. We are putting more money aside to ensure we’re covered long term.
“We have had to change the way we work to make savings. Before, we were used to leaving things on overnight and didn’t have to worry. Now, we have installed sensors which turn our lights and heating off at night if the office is not being used, while we ask all our employees to ensure devices are switched off overnight.”
For some small businesses, hybrid working is bringing additional costs. Over one third (36%) confirmed that moving to a hybrid working model has meant they are heating underused buildings.
Claudia Kirlew added: “With the cost of electricity right now, it would be very difficult for us to electrify our business completely. While I wouldn’t agree that heating is a luxury – you need to keep your staff warm in the office – if prices kept coming up and it became untenable, we would adapt and consider losing our office. This is not under consideration at the moment, however, and we would welcome advice that is specific to small businesses on how to save energy in our building.”
Energy Diaries also uncovered attitudes towards workplace energy-saving habits.
Only 15% of those surveyed talk about energy saving at work, while over half (52%) care more about energy saving at home than at work. Additionally, 52% said that working in a cold workplace would stop customers from visiting.
To support small businesses, Cadent has worked with the Energy Saving Trust to develop free, verified tips on making office buildings more energy efficient.
Dr Angela Needle, Director of Strategy at Cadent, said: “From domestic customers to small businesses, we are continuously thinking about heating solutions for a sustainable future that accommodates the needs for everybody in our network. While this is part of our long-term strategy, we know from our insights that small businesses need support now, which is why we have worked closely with Energy Saving Trust to develop supporting materials this winter.
“Many SMEs have told us that they are struggling, while questions over whether employees should take responsibility for sustainable practices when in the office have been raised. With ever-changing priorities, it’s important that business leaders understand they are not alone. We would encourage businesses to read the stories of other businesses in our Energy Diaries and use the insights to help raise awareness of the challenges they are facing.”
To find out more, please visit http: www.cadentgas.com/energydiariesÂ
About Cadent
Cadent is the UK’s largest gas distribution network with a 200-year legacy. We are in a unique position to build on strong foundations whilst encouraging the curiosity to think differently and the courage to embrace change. Day to day, we continue to operate, maintain and innovate the UK’s largest gas network, transporting gas safely and protecting people in an emergency. Our skilled engineers and specialists remain committed to the communities we serve, working day and night to ensure gas reaches 11 million homes from Cumbria to North London and the Welsh borders to East Anglia, to keep your energy flowing.
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