Even before the energy price cap rise came into effect in April 2022, hotel businesses were paying upwards of an estimated £420 a day on electricity, according to price comparison website Selectra. We’ve partnered with Octopus Energy to offer some short- and long-term fixes that could help your hotel business reduce energy costs. The short-term tips require little or no investment and could have an immediate impact on costs. The steps to long-term savings may require some additional investment, but could improve your cash flow well into the future. What’s more, becoming more eco-conscious about energy use could make your hotel business more attractive to customers.

David Scott, our Head of Retail and Leisure, says: “We have been inspired by actions taken by our hoteliers to implement cost savings whilst acknowledging our responsibility to act in a more sustainable way. These practical solutions represent simple steps that in a time of rising costs can make a real business difference.”

1. Choose the right tariff

How and when you use your energy should determine your choice of energy tariff. Depending on your meter type, you may be able to opt for an Economy 7 tariff, which would give you both a day unit rate and a night unit rate. If you have energy-intensive appliances that you can programme to come on at night – for example ovens, dishwashers, or heating and cooling systems – you could make use of the cheaper night-time unit rate.

2. Keep it clean

Ensure that air conditioning units and refrigeration and freezer systems are kept clean and free from dust, debris and obstruction. While it may seem a simple step, this could produce big results in efficiency, helping to bring down your energy bills. It could also extend the lifetime of the machines.

3. Switch off

Many appliances continue to draw on a small amount of power when on standby, and encouraging staff to be mindful of this could help save costs. Computers and monitors should be switched off if not being used for more than two hours, and when equipment isn’t being used for an extended period, unplug it. These are just a few examples, but engaging employees in a conversation about small changes could make a big difference.

4. Maintain your equipment

Service your boiler annually, check your refrigerators and freezers are not leaking fluid or cold air, and test any technology you have, such as computers or servers, to make sure it’s all operating efficiently. While there may be some costs involved, you could save money on your energy and fuel bills in the long run. It also helps if you can delay switching on heating or air conditioning until later in the year.

5. Reduce water temperature and consumption

Less water consumed means a lower water bill and a lower energy bill. Low-water-consumption showers and toilets, automatic shower controls, and tap aerators – clever devices that reduce the amount of water flowing through a tap without losing water pressure – are some of the tools you can use to achieve this. You can also avoid running appliances such as washing machines on half loads, and try turning down the water temperature on your boiler. As well as using less energy to heat the water, this helps reduce standby losses – where heat escapes from the water heater because the water is already hot.

1. Install LEDs

According to the Department for Business, Energy & Industrial Strategy (BEIS), lighting uses about 20% of the electricity generated in the UK. Light emitting diodes (LEDs) are more efficient than traditional incandescent bulbs, and BEIS suggests that upgrading to LED technology throughout your business could deliver “cost savings of up to 80%”.

2. Use fewer fridges and freezers

It’s often cheaper to run one larger unit than two smaller ones. By more effectively using the space you have, you may find you’re able to make do with fewer units.

3. Generate your own

You could save money through on-site generation by installing solar panels on your roof, or elsewhere on your property. The Scarlet hotel in Cornwall, renowned as one of the greenest in the UK, uses solar energy to heat its outdoor pool. With the cost of energy rising quickly, investing in solar that can generate at least some of your own power could lead to significant long-term savings.  If you don’t use all the energy you generate, you could sell it back to the grid for an additional revenue stream.

4. Electrify your fleet

As the prices of petrol and diesel rise, your employees and your business will be facing higher charges. Switching to electric vehicles and installing charging points in your car park could help both you and your employees to save on vehicle running costs.