Being a small business, and independent worker, or owning an office, is not just a commitment from a business and employment point of view. It also means paying attention to expenses, which can be a quite complex task, especially in times of rate increases. Now more than ever before, this issue is particularly pertinent, as global energy cost increases are having a major impact on utility bills, both at home and at work.
There are some practical tips that can be useful to manage your business with prudence, especially at a time in which the energy market is about to embrace a big transformation.
2024 marks the beginning of the “free market”
As of January 1st, 2024, the “Servizio di Maggior Tutela” will disappear. The news is reported in detail on the Servizio Nazionale Elettrico website. However, from January 1st, 2021 the progressive overcoming of the “Servizio di Maggior Tutela” has already begun for certain categories of customers:
small businesses (annual turnover between 2 and 10 million euros and a number of employees between 10 and 50) connected in low voltage;
micro-enterprises owning at least one withdrawal point with power greater than 15 kW.
While awaiting the definitive change in 2024, for the above-mentioned SMEs that have not yet switched to the free market, a transitional regime is in place throughout 2022 and 2023. Of course, no one prevents micro-enterprises from making the leap to the free market already now.
Among the potential benefits of the free market are rates, which generally have some important features to keep in mind:
Prices are set well in advance of their implementation: this is because suppliers, to protect themselves from long-term fluctuations, purchase the entire amount of energy they intends to offer, obtaining advantageous prices;
they can be at a fixed price or indexed for a certain period of time, depending on the customer's needs;
they may concern offers that include both electricity and gas and allow access to additional services such as discounts, loyalty programs and green energy offers, features that are not available in the “Servizio di Maggior Tutela”.
A compass to choose the best pricing solutions
Here are some best practices to consider when choosing the best rates for your business:
1
Make sure you have agreed on a corporate, i.e., business-type, electricity and gas rate for your business.
2
Choose a rate that suits your business productivity. It seems trivial, but it is important to bear in mind that the energy needs of a company are different from that of a family
3
It is also essential to pay close attention to the price, which can be fixed or variable.
In addition, when choosing the best electricity rate for your needs, it is important to keep in mind that, often, prices vary based on the time of the day you consume energy. The choices to keep an eye on are:
Single-hour electricity rate. It can be the best option, for example, for companies that concentrate their activity during the day, since the price remains the same throughout the day.
Bi-hourly electricity rate. Recommended for companies that concentrate their electricity consumption especially in the evening or, during the weekend.
Rate based on requirement. Some contracts vary according to the extent of your company’s energy needs, becoming more advantageous as more kilowatt hours of electricity or cubic meters of gas are consumed.
Finally, it is useful to remember that for gas, the rate applied changes in relation to the geographical area in which your company operates.
To help you find the best offer for your business in the vast options of electricity and gas offers, you can consult the Portale Offerte, a public website in which you can compare and choose the offers of electricity and natural gas for your business at a glance.
Small practical tricks to limit consumption
When it comes to energy saving in a business, it all has to do with everyday life, that can be made up of small tricks that can help to save energy and contain cost:
- replace energy-saving lamps with LEDs that consume less and last longer (between 35,000 and 50,000 hours while incandescent lamps only reach one thousand hours);
- do not leave lights, LEDs and machinery unnecessarily on;
- when purchasing new office devices, choose those with a higher energy category (A++, A+++);
- use air conditioners and heating systems only when necessary, avoiding waste such as having air conditioning and open windows at the same time;
- reach an ESCo, (Energy Service Company), to check the possibility of installing solar thermal systems or corporate photovoltaic systems to save energy costs and take advantage of tax deductions.
Pay attention also, especially now, to the subsidized interventions provided for businesses and which may result in eco-bonuses or similar. A valid help to navigate this delicate and complex field is provided by the Ministry for Economic Development. “Incentives” refer to actions that look at improving energy efficiency by installing or upgrading networks and systems of heating and cooling, i.e. the set of closed circuit pipes that supply heated or cooled water for interior of industrial and commercial buildings. The goal is always the same, namely to reduce the energy requirements for heating as much as possible.
Sustainability, a driver for industry transformation
A new way to keep energy consumption and budget under control is to consider proposals based on energy obtained from renewable sources.
A current relevant example is energy that is certified through green electricity and gas offers. The tariffs, to be considered green, must draw on energy that is produced from renewable sources, i.e. from installations that can be:
- geothermal
- biomass
- hydroelectric
- marine energy
To ensure that the electricity sold is actually from renewable sources and that it is not marketed several times, Arera has established a single valid certification system: the “Garanzia d’Origine”2, which is issued by the “Gestore di servizi energetici” (Gse) .
Speaking of alternative energy, it is important to clarify that your business will only be able to purchase green energy on the free market and not with protected contracts such as that of the “Servizio di Maggior Tutela” which, on the other hand, will permanently cease from 2024.
Still on the subject of renewables, another idea could be to install a photovoltaic system: we are talking about “off-grid” systems, that is, for use and consumption, and “grid-connected” systems that allow the production of energy to be resold to the central distribution.
In addition to photovoltaic systems, there are other technologies that guarantee energy savings and, at the same time, state incentives: ranging from heat pumps to energy-efficient air conditioning systems, from solar thermal and thermodynamic to mini-eolic. These are all technologies based on renewable energies that can allow you to access environmental certifications and make your business more and more efficient.
Disclaimer: The information provided on this page does not constitute legal, tax, finance, accounting, or trade advice, but is designed to provide general information relating to business and commerce. The FedEx Small Business Hub content, information, and services are not a substitute for obtaining the advice of a competent professional, for example a licensed attorney, law firm, accountant, or financial adviser.
Sources
1. Evolution of retail markets - www.arera.it
2. End of Servizio di Maggior Tutela - www.servizioelettriconazionale.it
3. Rates for electricity transmission, distribution and metering services - www.ceis-stenico.it
4. Distribution rates - www.arera.it
5. Pun index; results of the electricity market; Statistics and monitoring - www.mercatoelettrico.org
6. Single-hour and two-hourly rate, what is the difference? - www.enel.it
7. The smart meter is also green - www.economymagazine.it
8. Decree of the President of the Council of Ministers 21 January 2022 - www.gazzettaufficiale.it; www.governo.it
9. Press release of the Council of Ministers n. 57 - www.governo.it
10. Energy requalification: what it is - www.agenziaentrate.gov.it
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