As we near 2025, we can see, despite lots of talk, that we are facing escalating electricity costs that are only going up. There is no way it will go down soon.

The government's preferred solution is solar.

Most retailers rent, so it is not a practical solution. However, if you own your shop, it's worth considering if you are willing to wait years for a return.

Innovative energy management.

You can often do something to reduce electricity costs. Let's explore how you can reduce your power bill.

For most shops, lighting and climate control are the big energy guzzlers.

A retail store in Australia spends about $5,000-$7,000 on electricity annually. Here's how it typically breaks down: Lighting: 25% Heating/Cooling: 40% Refrigeration: 15% Computers: 10% Other Equipment: 10%

One point that people often forget is that a fridge heats a room; having many fridges will drive up cooling costs. You should ask the fridge installer if they can do something here. A simple duct that directs the heated air out can save money.

Still, the computer system is about $900 here. As a punt, I would say for a 12-hour day, your costs are

• $300-$400 per year for a desktop computer
• $100-$150 per year for a modern energy-efficient laptop
• $50-$100 per year for a standard monitor

These costs can add up quickly, especially when running multiple devices.

Practical Steps to Cut Costs

Switch to Energy-Efficient Equipment

Upgrading to the newer, energy-star-rated computer we sell can reduce your computer-related energy use by up to 50%.

Lighting Matters

 LED bulbs greatly reduce retail electricity costs, so they use about 75% less energy.

Reducing the wattage of the globes can also help.

Smart Climate Control

A programmable thermostat can help your business. You can save on energy costs by reducing heating and cooling costs by 10-15%.

Power Down

Turn off equipment when not in use, especially overnight. Even standby mode uses energy.

Shop Around

Don't stick with your current provider out of habit. Compare offers from different retailers - we saved about 15% just by switching.

Monitor Your Energy Use

How can you improve if you need to know where you are at? Here's how you can keep track:

Use a Power Meter

These handy devices, available for about $35 at most electrical stores, measure the electricity use of individual appliances. They are easy to use: You plug the meter and your device into it, leave the device on that unit for a day, record the cost, and then plug the meter into another unit.

Track Usage Over Time

Your electricity bills give you figures over the months. It will provide you with a clear picture of where you are going.

Peak Usage Times

You can adjust your electricity power to take advantage of off-peak rates if you have off-peak rates.

Computer Tricks to Reduce Energy Costs

Implementing these simple computer tricks can significantly reduce your energy consumption and costs:

Turn off printers

Switch off printers when not in use, especially overnight and on weekends.

Enable Power Management Settings

After inactivity, your computer's built-in power management features automatically put it into sleep mode. To Do this, go to Power Options in the Control Panel on Windows.

Do not use Screensavers

Screensavers prevent your computer from entering sleep mode, so it uses more energy unnecessarily. Use your settings to turn your screensaver off.

Laptops When Possible

Laptops typically use 80% less energy than desktop computers. If feasible for your business, consider switching to laptops for some tasks.

Adjust Monitor Brightness

Reduce your monitor's brightness to a low, comfortable setting. It can significantly decrease energy consumption.

Use Smart Power Strips

Consider installing smart power strips. These strips turn off devices attached to a computer when the computer is not in use. Our state electricity authority gave us some for free; you may be able to get one from them, too.

Choose Energy-Efficient Hardware

When upgrading, look at the ENERGY STAR, which uses about 30-65% less energy than standard models.

Do you need all computers running

Consider turning off a few of them if you do not need them for a few hours.

This can save about a thousand dollars on a typical computer that has been around for over five years.

Educate and Encourage Staff

Create a clear policy on energy-saving practices and remind employees to turn off their computers, photocopiers, etc.. When adopted company-wide, this can lead to significant savings.

The Bottom Line

You can control how you use energy in your shop. Ten percent here and five percent there can add up.

My Eye-Opening Experience

Do not be made a sucker by an electricity comparison provider? As a business owner in Australia, I recently had an encounter that left me questioning their claims.

About a year ago, I blogged about the pitfalls of using the government electric comparison websites here. In summary, the figures on the government website I would get from my existing provider were wrong for me. It made me wonder if the other figures quoted from different providers were terrible, too. 

My recent experience with a commercial energy comparison provider is here. It all started with an email stating that the plan they set up for me was running out and it was time to renew. The problem here was my existing plan had a few months to go and that they never set it up. But as they did promise to slash my shop's electricity bills, I decided to find out what they had to say. So I rang up and got a cheerful voice claiming to be an "electricity expert". She offered to find me the cheapest plan for my business, promising savings. Admittedly, the quoted amount seemed too good to be accurate, but I would be happy if something could be done with our electric bills.

The conversation went something like this:

1. They asked for some basic details about my shop's energy usage.
2. They wanted a recent electric bill.
3. The call ended with her excitedly promising "thousands of dollars" in annual savings by quoting one much cheaper item.

I signed a form allowing them to look and later sent a bill 

She then called back with an offer. The offer, however, seemed too good to be true. Trusting my instincts, I requested the information in writing to allow me to digest it. Here's what unfolded:

1. An email arrived, but it lacked the comprehensive details I expected.
2. Upon closer inspection, I made a startling discovery: the new plan was actually more expensive than my current one—20% more.
3. I reached out for clarification by email, only to be met with silence. They never responded.

Retail electricity costs

Here are some facts about electricity costs for small retailers in Australia:

Electricity prices are up, with government taxation playing a significant role.

On average, small businesses in Australia pay between $700 and $1,400 a month for electricity. No matter what they say, you are not going to get a vast reduction.
 

Energy bill reduction for shops

Here are some tips for energy efficiency

1. Upgrade to energy-efficient lighting: LED bulbs can significantly reduce your energy consumption.
2. Optimise your heating and cooling: Proper insulation and smart thermostats can make a big difference.
3. Invest in energy-efficient appliances: Look for appliances with high energy star ratings.
4. Implement a switch-off policy: This one is inexcusable. Ensure your equipment is turned off outside of business hours. 
5. Use natural light: Where possible, use natural light to reduce reliance on artificial lighting. I opened the blinds at work; we work in the daytime and have plenty of sun. 

Lessons Learned: A Retailer's Guide to Energy Savings

This experience taught me valuable lessons that I believe every business owner should know:

1. Do your homework: You have got to use some intelligence
2. Look at the big picture: Don't be swayed by one attractive rate. Always consider the total cost.
3. Plan B: Check what happens if it does not work out and you want out
4. Leverage your relationship: If you're satisfied with your current provider, before doing anything by explaining the situation. I have an offer for .....

Red Flags to Watch Out For

Based on my experience, here are some warning signs that an energy offer might not be as good as it seems:

1. Pressure to sign up immediately
2. Reluctance to provide details in writing
3. Promises of unrealistic savings

Wrapping Up

Be careful. Also, remember the cheapest plan is not always the best. Customer service and provider reliability are crucial for keeping your business running smoothly. 

Reducing energy consumption is a smart, money-saving tactic but can backfire if not thoughtfully implemented.

Recently, The National Lotteries Newsagents Association provided tips to members for saving electricity here, which included implementing smart power settings for computers.

"25. Implement smart power management for PCs

‍Use power management settings to ensure computers enter standby mode when not in use, minimising energy wastage."

Unfortunately, before releasing this information sheet, they did not tell us, and we only found out when our users started ringing us up on how to do this. What worries us is those who did not ring us up, as while savings are possible, improperly configured power management could cause problems if this is done.

If you are going to do this, consider this before enabling power-saving policies on your computers:

Firstly, power savings can reduce the speed of your computers by slowing down the computer; slowing down saves power.

Workflow Disruptions

Computers entering standby automatically when briefly unused may prevent staff from resuming work. This can lead to:

• Loss of unsaved data
• Frustrated employees if unexpected logout occurs
• Slower customer service

All people working on your computers need to be trained on how to handle computers on standby.

System Availability Issues

POS systems often rely on constant uptime of services like:

• Backend servers for uninterrupted data access
• Automatic backups
• Print servers for receipts
• Computer updates

Frequent sleep disruptions on these devices may cause problems with this.

Application Interruption Risks

Unlike standard shutdown procedures, power management settings may force applications to close before finishing tasks. This could result in data loss or file corruption. Most of your software does not have autosave features; if so, it will cause problems. Sometimes people who run software with autosave, turn it off as it runs slower and is unnecessary. 

Remote Access Limitations

One of the excellent features of our software is that it allows you to log in anywhere in the world at any time; if this is not done, you will lose this ability.

Recommendations

Please consult us first to avoid issues. 

Before deployment, thoroughly test power settings and roll out gradually to catch any issues early.

With careful implementation, you will find that your electricity usage will be reduced without negatively impacting operations.