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With energy costs remaining a major pressure for UK organisations, the question of how to reduce business energy bills is more relevant than ever. From adopting simple efficiency measures to deploying advanced monitoring technology, there are a range of ways companies can take control of their consumption and achieve long-term savings.

Options for Reducing Business Energy Bills

Businesses today have several options available to reduce energy costs:

• Behavioural Changes – Encouraging staff to switch off unused equipment, adjust heating/cooling, and optimise working hours.
• Efficient Equipment – Upgrading to LED lighting, energy-rated appliances, and optimised HVAC systems.
• Renewable Integration – Using solar PV or on-site generation to reduce reliance on the grid.
• Time-of-Use Shifting – Running energy-intensive processes during off-peak hours to lower tariffs.

While these actions deliver measurable benefits, they are most powerful when guided by accurate data. That’s where a comprehensive energy management installation makes the difference.

The Role of Energy Management Installation

A properly designed energy management installation combines sub-metering, smart meters, and monitoring platforms to provide businesses with granular, real-time data on how energy is used. This gives decision-makers the insight needed to identify hidden inefficiencies and implement targeted savings strategies.

With Elcomponent’s energy monitoring systems, businesses can:
• Pinpoint high-consumption processes and equipment.
• Track the impact of energy-saving initiatives.
• Accurately allocate costs across departments or sites.
• Build a long-term strategy aligned with net zero goals.

This is not just about cutting bills — it’s about building an evidence-based approach to sustainable energy management.

Business Energy in the UK — The Bigger Picture

According to government data, UK businesses consume over 200 terawatt-hours (TWh) of electricity each year — that’s more than 200 billion kilowatt-hours (kWh). Much of this is essential to daily operations, but a significant portion is wasted through inefficiencies.

If the UK’s business community could collectively reduce consumption by just 10%, it would equate to savings of around 20 billion kWh annually. That’s enough energy to power more than 6 million UK homes for a year — while also cutting millions of tonnes of carbon emissions.

Supporting Net Zero with Energy Monitoring

For the UK to reach its net zero targets by 2050, businesses must take a proactive role in reducing consumption. Deploying robust energy management solutions is one of the most effective ways to achieve this.
By turning data into actionable insight, organisations can:

• Reduce operating costs.
• Lower their carbon footprint.
• Demonstrate measurable progress towards sustainability commitments.
• Contribute to a collective national reduction in business energy usage.

Smarter Energy Management with Elcomponent

At Elcomponent, we design and install energy monitoring systems that give businesses the knowledge they need to cut costs and reduce consumption. By combining advanced sub-metering with intuitive reporting platforms, we deliver the insights that drive real savings.

The opportunity is clear: with better energy management, UK businesses can save billions of kWh collectively, helping both the bottom line and the planet.
Contact Elcomponent today to discuss how a designed energy management installation can reduce your bills and support your journey to net zero.

 

 

Why kWh/m² matters

Energy intensity (kWh per m² per year) lets you compare very different buildings on a like-for-like basis. UK government datasets now report median electricity and gas intensities by building use, so you can benchmark offices against factories, warehouses, shops and hospitality. GOV.UK

This article focuses on reliable sources of data, to help you understand the typical usage and costs related to business sectors and building spaces usage, from factories to retail.

Headline benchmarks

Recent official stats (ND-NEED 2024, covering 2022 metered use in England and Wales) and the government’s BEES survey (2014-15) give a clear picture of typical ranges:

• Hospitality: median electricity intensity 168 kWh/m²; median gas intensity 296 kWh/m². Among the highest per m² due to long hours and catering loads. GOV.UK
• Factories: median electricity intensity 28 kWh/m²; median gas intensity 72 kWh/m². Low per m² because sites are large, even though total consumption is high. GOV.UK
• Warehouses: median gas intensity 55 kWh/m²; among the lowest per m² overall. GOV.UK
• Offices: BEES shows median non-electrical intensity ~90 kWh/m² and office electrical intensity typically <100 kWh/m² in mixed-fuel offices; all-electric offices showed a median electrical intensity 124 kWh/m². GOV.UK
• Retail/shops: BEES median electrical intensity ~118 kWh/m² with non-electrical around 50 kWh/m². GOV.UK

Two structural effects to remember:

1. Smaller buildings use more per m². In 2022 the smallest premises had median electricity intensity ~97 kWh/m²vs ~46 kWh/m² for the largest. GOV.UK
2. Total demand is concentrated. A small share of sites drives most consumption; for example, 80% of electricity is used by the top 7% of buildings. GOV.UK

Converting kWh/m² into £/m² (illustrative)

To turn intensity into cost per m²:
£/m² = (electricity kWh/m² × electricity p/kWh) + (gas kWh/m² × gas p/kWh).

Using indicative 2024-25 non-domestic price ranges from DESNZ/ONS (electricity roughly 20–30 p/kWh, gas roughly 5–8 p/kWh; actual contracts vary), here are example annual costs: GOV.UKOffice for National Statistics

• Office, mixed-fuel (say 90 kWh/m² electricity, 90 kWh/m² gas):
  £22.50–£27.00 for electricity + £4.50–£7.20 for gas ≈ £27–£34 per m².
• Factory (28 kWh/m² electricity, 72 kWh/m² gas):
  £5.60–£8.40 + £3.60–£5.76 ≈ £9–£14 per m².
• Warehouse (illustrative BEES mix 53 kWh/m² electricity, 41 kWh/m² gas):
  £10.60–£15.90 + £2.05–£3.28 ≈ £13–£19 per m².
• Hospitality (168 kWh/m² electricity, 296 kWh/m² gas):
  £33.60–£50.40 + £14.80–£23.68 ≈ £49–£74 per m².

These are benchmarks not quotes; procurement timing, load profile, standing charges and Climate Change Levy all move the final bill.

The collective bill for UK businesses

In 2022, non-domestic buildings used about 122 TWh of electricity and 156 TWh of gas in England and Wales. At the broad price ranges above, that implies an economy-wide annual energy spend on buildings on the order of £32–£49bn. (Electricity total inferred from ND-NEED’s cumulative table showing 122 TWh; gas total explicitly ~156 TWh.) GOV.UK+1

What this means for action

• Target the big hitters in each building: offices focus on HVAC, ICT and lighting; factories on process heat and compressed air; warehouses on heating and lighting; hospitality on kitchens, hot water and long hours. BEES end-use splits back this up. GOV.UK
• Expect quick wins from controls and scheduling. Government surveys consistently find strong savings potential from better controls, lighting upgrades and metering. GOV.UK
• Measure by meter, manage by m². Track kWh/m² by site and normalise for hours and occupancy so you can compare buildings fairly and prioritise the worst performers. ND-NEED shows intensity has been falling over time, so continuous benchmarking matters. GOV.UK

Sources

• ND-NEED 2024 report and data: median intensities by building use; consumption totals; size-intensity effects. GOV.UK+1
• BEES Overarching Report 2014-15: sector medians, office and retail intensities, end-use breakdowns and savings potential. GOV.UK+1
• DESNZ Quarterly Energy Prices/ONS analysis: non-domestic price context 2024-25. GOV.UK

Using indicative 2024-25 non-domestic price ranges from DESNZ/ONS (electricity roughly 20–30 p/kWh, gas roughly 5–8 p/kWh; actual contracts vary), here are example annual costs: GOV.UKOffice for National Statistics

• Office, mixed-fuel (say 90 kWh/m² electricity, 90 kWh/m² gas):
£22.50–£27.00 for electricity + £4.50–£7.20 for gas ≈ £27–£34 per m².

• Factory (28 kWh/m² electricity, 72 kWh/m² gas):
£5.60–£8.40 + £3.60–£5.76 ≈ £9–£14 per m².

• Warehouse (illustrative BEES mix 53 kWh/m² electricity, 41 kWh/m² gas):£10.60–£15.90 + £2.05–£3.28 ≈ £13–£19 per m².

• Hospitality (168 kWh/m² electricity, 296 kWh/m² gas):
£33.60–£50.40 + £14.80–£23.68 ≈ £49–£74 per m².
These are benchmarks not quotes; procurement timing, load profile, standing charges and Climate Change Levy all move the final bill.

The collective bill for UK businesses

In 2022, non-domestic buildings used about 122 TWh of electricity and 156 TWh of gas in England and Wales. At the broad price ranges above, that implies an economy-wide annual energy spend on buildings on the order of £32–£49bn. (Electricity total inferred from ND-NEED’s cumulative table showing 122 TWh; gas total explicitly ~156 TWh.) GOV.UK+1
What this means for action

• Target the big hitters in each building: offices focus on HVAC, ICT and lighting; factories on process heat and compressed air; warehouses on heating and lighting; hospitality on kitchens, hot water and long hours. BEES end-use splits back this up. GOV.UK

• Expect quick wins from controls and scheduling. Government surveys consistently find strong savings potential from better controls, lighting upgrades and metering. GOV.UK

• Measure by meter, manage by m². Track kWh/m² by site and normalise for hours and occupancy so you can compare buildings fairly and prioritise the worst performers. ND-NEED shows intensity has been falling over time, so continuous benchmarking matters. GOV.UK

Sources
• ND-NEED 2024 report and data: median intensities by building use; consumption totals; size-intensity effects. GOV.UK+1
• BEES Overarching Report 2014-15: sector medians, office and retail intensities, end-use breakdowns and savings potential. GOV.UK+1
• DESNZ Quarterly Energy Prices/ONS analysis: non-domestic price context 2024-25. GOV.UK

 

Modern buildings depend on technology to stay efficient, safe, and comfortable. At the heart of this is the Building Management System (BMS) — a centralised platform that controls and monitors key services such as heating, ventilation, air conditioning, lighting, and security.

While a typical BMS provides oversight of building operations, it often lacks the detailed energy data needed to drive real efficiency. That’s where Elcomponent’s advanced energy management systems come in.

What is a Building Management System?

A Building Management System (BMS) is a computer-based control system installed in buildings to manage mechanical and electrical services. Typical components of a BMS include:

• HVAC control – Heating, ventilation, and air conditioning.
• Lighting control – Ensuring efficient use of natural and artificial lighting.
• Power systems – Monitoring of electrical supply and distribution.
• Fire and security systems – Safety monitoring and alerts.
• Plumbing and water systems – Pressure, flow, and usage monitoring.

A BMS provides building operators with a centralised platform to improve comfort, reduce downtime, and maintain safety. However, when it comes to energy, it often only scratches the surface.

Why Integrate Energy Management Systems with a BMS?

A BMS alone does not always deliver the granular energy data required for businesses to make informed decisions about consumption and cost reduction. By integrating Elcomponent’s energy monitoring systems, organisations gain:

• Granular Insights – Sub-metering and advanced data capture reveal exactly where and how energy is being used.
• Cost Visibility – Pinpoint areas of waste, enabling precise cost allocation and savings.
• Sustainability Tracking – Monitor carbon footprint and measure progress towards ESG targets.
• Real-Time Monitoring – Live data allows faster responses to inefficiencies or system faults.
• Scalability – Expand monitoring across multiple buildings or nationwide estates.

This integration transforms a standard BMS into a complete energy management solution.

Elcomponent’s Approach to Energy Management Installation

We work with organisations to ensure that our energy management installation complements existing infrastructure. Our systems are designed to integrate seamlessly with incumbent BMS platforms, ensuring minimal disruption while delivering maximum insight.

Elcomponent provides:
• Flexible Sub-Metering Options – Installed across lighting, HVAC, process loads, and more.
• Automated Data Capture – Feeding directly into your BMS or standalone energy management software.
• Custom Reporting Dashboards – Giving teams clear, actionable insights.
• Long-Term Support – Ensuring your system continues to perform at its best.

Complete Energy Management Solutions

With over 40 years of expertise, Elcomponent helps businesses turn their Building Management Systems into powerful energy monitoring systems that drive efficiency and reduce costs.

Whether you’re looking to enhance an existing BMS, install new monitoring technology, or build a comprehensive energy management solution, our systems provide the clarity and insight needed to take control of your energy usage.

Contact Elcomponent today to discuss how our energy management systems can integrate with your BMS to deliver deeper insights and stronger cost savings.

The UK government has set a legally binding commitment to reach net zero greenhouse gas emissions by 2050. It’s one of the most ambitious environmental targets in the world—designed to combat climate change, reduce environmental impact and shift the economy towards low-carbon growth. But while this is a national commitment, the path to net zero will be driven largely by action at the business level.

Understanding the 2050 Net Zero Target

Net zero by 2050 means that the UK must remove as much greenhouse gas from the atmosphere as it emits. Achieving this requires sweeping change across all sectors of the economy—from how we produce energy and move goods, to how we heat buildings and manufacture products.

To get there, the government has set out a series of interim milestones, including a 68% reduction in emissions by 2030 and a 78% cut by 2035, compared to 1990 levels. These targets are not just policy ambitions—they’re legally enforceable under the Climate Change Act, and they create a framework within which businesses will be expected to operate.

What This Means for UK Businesses

For businesses, the implications are far-reaching. Hitting these national goals will require companies of all sizes to:

• Reduce direct and indirect emissions across their operations, supply chains and product lifecycles.
• Invest in energy efficiency—upgrading equipment, switching to low-carbon heating systems, improving building insulation and implementing smart energy monitoring.
• Shift to renewable energy sources, either through on-site generation, procurement of green tariffs or participation in energy markets.
• Electrify fleets and logistics, replacing petrol and diesel vehicles with electric alternatives.
• Improve transparency and reporting, using frameworks such as TCFD (Task Force on Climate-related Financial Disclosures) and aligning with ISO standards like ISO 50001 for energy management.

Failure to act will not only increase the cost of compliance down the line, but may also put businesses at risk of reputational damage, supply chain exclusion and loss of investor interest.

ESG and Stakeholder Pressure

There’s also growing pressure from investors, customers and employees. Environmental, Social and Governance (ESG) performance is now a key consideration in procurement, funding, recruitment and brand loyalty.
As public and private sector organisations align with net zero targets, they are looking to work only with suppliers and partners that can demonstrate environmental responsibility and data-backed action. Businesses without clear sustainability plans are likely to fall behind.

The Role of Energy Monitoring and Data

One of the most critical tools in the journey to net zero is energy data. Without accurate measurement, it is impossible to manage or improve performance.
Companies like Elcomponent play a key role in helping businesses achieve these goals. By delivering advanced energy monitoring solutions—including smart sub-metering, LoRaWAN technology and MW2 software—Elcomponent enables businesses to track, analyse and reduce energy use across multiple sites.

These systems provide the visibility needed to make informed decisions, report progress transparently and meet the requirements of both internal ESG strategies and external frameworks like ISO 50001 and SECR.
The 2050 net zero target is more than a government initiative—it’s a nationwide transformation that depends on every sector playing its part. For UK businesses, this means embracing sustainability not as a cost, but as a strategic opportunity.

Those that invest now in energy efficiency, carbon reduction and clear reporting will be well positioned to thrive in the low-carbon economy. Those that delay risk being left behind.

The future is net zero. The time to act is now.

 

In today’s business landscape, success is no longer measured by financial results alone. Investors, regulators, customers and employees increasingly expect organisations to demonstrate their values through responsible, sustainable practices. This is where ESG performance comes into play.

What Does ESG Stand For?

ESG stands for Environmental, Social and Governance. It refers to a set of criteria used to evaluate a company’s impact on the world around it—beyond profit.

• Environmental covers how a business manages its impact on the planet. This includes energy use, carbon emissions, waste management, water usage, pollution control and climate risk.

• Social considers how the company treats people—employees, customers, suppliers and the wider community. This includes diversity, human rights, working conditions, health and safety, and community engagement.

• Governance looks at how a business is run. This includes board structure, executive pay, transparency, ethical conduct, regulatory compliance and shareholder rights.

Together, these pillars offer a framework for evaluating how sustainable, ethical and well-managed a company really is.

Why ESG Performance Matters

ESG performance reflects how seriously a business takes its responsibilities—not only to shareholders, but to society and the environment. It has become a key indicator of long-term value and resilience.

Strong ESG performance is associated with:
• Better risk management
• Improved reputation and brand loyalty
• Lower costs through efficiency and waste reduction
• Greater access to investment and capital
• Stronger employee engagement and retention

Conversely, weak ESG practices can lead to regulatory penalties, public backlash, reputational damage and a loss of investor confidence.

The Growing Pressure for Transparency

Stakeholders today expect businesses to report openly on ESG performance. This includes clear data, progress against targets, and evidence of meaningful action. ESG disclosures are increasingly required by investors, lenders, and even procurement teams in supply chains.

Frameworks such as the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and Task Force on Climate-related Financial Disclosures (TCFD) are shaping how ESG performance is reported globally.

How ESG Links to Business Strategy

ESG is not an add-on—it’s a core part of modern business strategy. By integrating ESG into decision-making, companies can unlock long-term value, build stakeholder trust and remain competitive in a changing world.

From setting net zero targets and tracking energy performance, to improving supply chain ethics or ensuring boardroom diversity, ESG touches every part of the business. It’s about doing the right thing—and doing it well.

ESG performance reflects a company’s impact, values and long-term vision. In a world where sustainability and social responsibility are becoming central to how businesses are judged, ESG isn’t just a trend—it’s a vital measure of success.
Whether you’re a global corporation or a growing SME, understanding and improving ESG performance is key to building a business that’s not only profitable, but purposeful.

 

Smart energy meters are essential tools for monitoring and managing energy consumption in industrial settings. Unlike traditional meters, which provide only basic usage readings, smart meters deliver real-time, detailed data that gives businesses greater visibility over their energy use. This insight enables more efficient operations, cost savings, and compliance with sustainability targets.

Real-Time Monitoring and Data Accuracy

In an industrial environment, energy demands fluctuate constantly—across machinery, HVAC systems, lighting, and process lines. A smart energy meter continuously measures these loads and transmits accurate consumption data at regular intervals. This real-time visibility allows engineers and facility managers to understand exactly where energy is being used, when peaks occur, and how different systems behave over time.

By tracking consumption in granular detail, smart meters help identify inefficiencies that might otherwise go unnoticed. For example, they can flag equipment that runs outside of operating hours or draw excessive power due to wear or faults.

Integration with Energy Management Systems

Most industrial sites pair their smart meters with an energy management system (EMS), allowing data to be collected, visualised and analysed through a central platform. This integration supports benchmarking across departments or shifts, tracks performance over time, and helps decision-makers spot opportunities for savings.

Smart meters also support automated reporting, which can reduce administrative time and ensure data consistency for ESG reporting, audits, or ISO 50001 compliance.

Load Profiling and Demand Management

Smart meters are capable of producing detailed load profiles. These profiles show how energy use varies throughout the day, helping companies manage demand more effectively. By aligning operations with off-peak periods, or by staggering equipment usage to reduce load spikes, businesses can minimise charges related to peak demand and avoid penalties.

For manufacturers, this means better control over energy-intensive processes and the ability to plan maintenance or production schedules with energy efficiency in mind.

Supporting Multi-Site and Remote Monitoring

For businesses operating across several facilities, smart meters can be installed at each location and connected to a central monitoring platform via technologies such as LoRaWAN. This allows organisations to compare performance across sites, benchmark usage, and implement consistent energy-saving strategies at scale.

Remote access also means that energy managers can monitor consumption trends, receive alerts, and make informed decisions from anywhere—without needing to be on site.

Smart energy meters are far more than just digital upgrades to traditional meters. In industrial environments, they form the foundation of energy visibility, helping businesses reduce costs, improve efficiency and drive sustainability. With accurate data at their fingertips, companies can act quickly, eliminate waste, and futureproof their operations in a competitive and energy-conscious market.

 

As the UK pushes towards a net-zero future, businesses are under increasing pressure to monitor, report and reduce their energy usage. Two key government-led schemes—SECR and ESOS—play a central role in this shift. Both are designed to improve corporate energy transparency and efficiency, but they differ in scope, requirements and frequency.

Here's what businesses need to know.

What Is SECR?

SECR stands for Streamlined Energy and Carbon Reporting. Introduced in 2019, it replaced the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme and forms part of the UK’s commitment to reducing greenhouse gas emissions.

Who Needs to Comply?

SECR applies to:
• Quoted companies of any size listed on the stock exchange
• Large unquoted companies and LLPs that meet two or more of the following:
250+ employees
£36 million+ annual turnover
£18 million+ balance sheet total

Organisations that use 40,000 kWh or less during the reporting year are exempt from most SECR disclosures.

What Does SECR Involve?

Under SECR, qualifying businesses must include energy use and carbon emissions data within their annual Directors’ Report. This includes:

• Total energy use (electricity, gas, transport)
• Associated greenhouse gas emissions
• An intensity ratio (e.g. tonnes of CO₂ per £million turnover)
• Energy efficiency actions taken during the reporting year
• Methodology used for calculations

SECR promotes transparency and accountability, helping stakeholders understand an organisation’s environmental impact.

What Is ESOS?

ESOS stands for Energy Savings Opportunity Scheme. It is a mandatory energy assessment and energy-saving identification programme introduced to comply with the EU Energy Efficiency Directive, and it remains UK law post-Brexit.

Who Needs to Comply?

ESOS applies to large UK undertakings and their corporate groups that meet either of the following:

• 250 or more employees
• An annual turnover in excess of £44 million and an annual balance sheet over £38 million

ESOS assessments must be carried out every four years. The next compliance deadline is for Phase 3, due on 5 December 2024.

What Does ESOS Involve?

Businesses must:
• Measure their total energy consumption across buildings, transport and processes
• Carry out energy audits for areas of significant consumption
• Identify practical energy-saving opportunities
• Have the assessment reviewed and signed off by a qualified ESOS Lead Assessor
• Notify the Environment Agency of compliance

Importantly, businesses are not obligated to implement the energy-saving recommendations—but they must identify them and report appropriately.

Why These Schemes Matter

Both SECR and ESOS are part of the UK’s wider strategy to increase business accountability in tackling climate change. For businesses, they offer not just a compliance obligation but an opportunity to reduce costs, improve operational efficiency, and enhance ESG credentials.

Non-compliance can result in enforcement action, reputational damage, and missed opportunities to reduce energy-related expenses.

How Elcomponent Supports SECR and ESOS Compliance

At Elcomponent, we provide the data tools and systems that businesses need to meet their SECR and ESOS obligations confidently and accurately.

Our offerings include:
• Smart metering and sub-metering systems to monitor energy usage at granular levels
• LoRaWAN-enabled devices for cost-effective monitoring across large or multi-site operations
• MW2 energy software for real-time reporting, visualisation and data export—perfect for inclusion in SECR submissions or ESOS audits

Whether you're starting from scratch or strengthening an existing energy strategy, our solutions help simplify compliance while identifying measurable opportunities for savings and improvement.

SECR and ESOS are more than just checkboxes for compliance—they are essential frameworks for managing energy consumption, reducing costs and driving environmental performance. As regulatory expectations grow, businesses that understand and embrace these schemes will be best placed to lead the way in sustainable, responsible growth.