Energy Management Systems Explained

If you have your own business, you are probably trying to cut costs when possible, and one of the highest costs you are most likely regularly incurring is for your energy use.

Energy bills in the UK are skyrocketing- and that includes electricity, gas, and water. The average UK business spends about £6,462 a year on energy costs- and this is an average business with costs for larger businesses being much higher.

For every £1 wasted on energy, a business usually has to make 5 to 10 times more in sales to earn the same profit.

Businesses can now increase their energy efficiency by implementing an energy management system. Energy management systems can help businesses save money by saving energy- and make a difference of about 2-10% in annual energy expenses. But how do they work? Keep reading for a detailed rundown.

What are Business Energy Management Systems?

An energy management system is a combination of tools and computer applications that help in efficient energy management by:

Monitoring energy usage patterns and observing consumption trends
Using different management techniques to understand energy flow and energy data from energy procurement to usage, etc.
Recognising wastage of energy resources and helping redesign energy systems to avoid inefficiencies.
Helping a business ultimately save energy and therefore reduce operating costs, and save money on utility bills.

With an energy management system, business owners can make more informed decisions.

Besides BEMSs, there are several other types of energy management systems, including building energy management systems that keep energy efficiency in a building high and reduce energy consumption costs in the structure - whether the building is residential or commercial. There are also home EMSs that help optimise the use of energy in households and reduce bills.

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Benefits of using Energy Management Systems?

Using an energy management system has many benefits. With high energy demand, it becomes necessary to start measuring and monitoring usage patterns to prevent unnecessary energy and money waste.

There are otherwise complex systems to gauge where energy wastage occurs, which may include going over energy use records, reading meters, constantly keeping an eye on consumption. Still, all of this effort is sometimes ineffective.

How exactly can an Energy Management System help you? Here are some of the benefits;

Saving Money: It's pretty simple and clear-cut that an energy management system will ultimately identify inefficiencies and help you design an optimal power flow for your business. This will reduce overall costs and result in higher profits.
Reducing your Carbon Footprint: Reducing energy usage makes you more environmentally responsible, improving your business's image and the environment around us.
Demand management: An EMS can help you train and guide your employees on best using energy sources and having complete control over consumption patterns. This will ensure you do not incur penalties known as a "demand charge" for exceeding the usage quantity mentioned in your electricity plan.
Analyse the Return on Investment for Energy Projects: Rather than going through difficult processes to measure ROI on different projects with high-energy dependency, the technology helps you accurately assess your energy data to figure out cost and revenue and, therefore, invest in projects that are likely to give you the highest ROI.
Knowledge Enhancement: With a system, you will have the information to choose the optimal energy contract and select the best energy suppliers for your business.
Government Incentives: If a business is taking the required measures to decrease energy use, the government may provide incentives, such as a reduction in the Climate Change Levy Fees to encourage the action. The UK is very appreciative of businesses playing their part in minimising energy use and avoiding unnecessary depletion of resources.

It is ideal to use an energy management system if you want to save costs in the long run, and the sooner you invest in one, the better! Overall, it helps in better and more profitable decision-making through a simpler and clearer approach rather than going through previous bills, calculating costs, and manually finding areas where energy consumption can be reduced.

The software does all the legwork, showing your energy consumption trends and how to reduce them to increase efficiency. If you are ready to begin cost-cutting, let's start by comparing your electricity rates in under 60 seconds here at Business Energy UK.

Which types of businesses use EMS?

EMSs are used by all types of businesses who want to reduce their costs by controlling the consumption of energy sources. However, most small businesses don't use EMSs because their businesses are not energy-dependent and don't have substantial energy usage.

This doesn't mean that they can't use an EMS or that it won't be suitable for them, but small businesses run from one or two rooms don't really require a tech-based system to identify inefficiencies in their consumption patterns.

Sometimes, for them, it is only about turning off the overhead light when not in use and making sure the printer is unplugged.

Nevertheless, large businesses and those that are highly energy-dependent such as manufacturing companies and production-oriented setups, often use EMSs to manage their energy and carbon emissions.

Besides businesses in the secondary sector who rely on EMSs, some businesses in the tertiary and service sectors also use EMSs. For example, hospitals, hotels, restaurants, clubs, and beauty salons.

It is advisable for small to medium-sized businesses to also invest in EMSs to devise cost-effective solutions to energy use. They can figure out ways to load shift to avoid peak demand charges and develop energy savings plans to cost-cut overall.

Regardless of the business type, it is worthwhile to invest in an energy management tool. Once you have analysed your consumption trends, you may want to consider new energy quotes from suppliers with Business Energy UK - our professional team are always on hand to help you get the best deal.

How to choose your energy management tool

If you are in the market for an energy management tool, you need to pay attention to a couple of things.

First of all, you must consider your goals and what you want to use the tool for. Are you going to use the tool to understand energy use for one location or multiple locations? Would you like to forecast the energy impact of adding new machinery or expanding your location? Are you trying to improve your energy purchasing decisions?

There are basic systems that help you create energy profiles, and then there are more advanced systems that can also automate load shedding and similar processes. There are also several different types of configurations in between. You need to choose a system that meets your requirements and goals.

Your system must also be user-friendly. A system that is too complicated and too difficult to operate and understand is definitely not ideal. Your tool must be usable by a layman with minimal instructions.

You can also check for key features such as real-time monitoring, the ability to analyse historical data, power-quality analysis, easy meter-software integration and customised reporting, among other features.

Frequently Asked Questions

What's the best energy management system?

EMSs have different features, and several are top-rated in a given period of time. To determine the best system, you need to discover the best EMS for you and your business- according to your budget and needs!

According to Capterra, some of the best include ETAP EMS, Opinum Data Hub, and SkySpark.

Can an energy management system help save on energy costs?

Yes, that is what an EMS is designed to do. The system first observes consumption patterns and historical trends, identifies inefficiencies and wastage, and helps devise a plan to save energy. Some EMS systems are automation systems that help automate processes such as load shedding etc.

On average, an EMS can cut 2-10% of energy expenditure.

What will an EMS show me?

An EMS can show you where and when your energy is being consumed and which areas consume the most. EMSs are linked to smart meters and can also show you real-time data of how energy is being consumed by the minute to devise a cost-effective strategy to control consumption and aim for sustainability.

Basically, the system performs data collection and monitoring functions, helping you see things such as energy cost per unit produced, energy cost trends over the years, and other numeric data that can help you make more informed decisions for your business.

Where can I find the best business energy quotes?

You can find the best energy quotes here at Business Energy UK! Easily compare electricity tariffs and energy costs, and easily find a supplier that provides the best energy quote for your needs.