Energy Efficiency at Work: How Natural Gas Can Help

Many business owners will tell you that their number one unpredictable expense is energy costs. However, businesses can help minimize energy costs and mitigate energy cost fluctuations more effectively by following a few simple tips, and perhaps considering a switch to natural gas.

In Canada, the Canadian Federation of Independent Business says hydro costs became a larger issue for business owners after mandatory smart meters were introduced, charging time of use prices. Unlike households, many small- and medium-sized businesses open during regular business hours and must therefore pay peak rates for electricity that can be more than twice as much as off-peak rates.

According to the Ontario Energy Board, on-peak rates were 18 cents per kilowatt-hour in 2016, up 81% since November 2010, when the smart meter program began. On-peak rates have since dropped to around 13 cents per kilowatt hour as of May 1, 2018.

Still, business owners are faced with large hydro bills every month. Fred Luk, owner of the Fred’s Not Here restaurant in Toronto, told the Globe & Mail his average hydro bill ranges from $3,000 to $5,000 per month. And Luk has taken some measures to reduce his bill, such as turning off baseboard heaters in areas that are not being used.

Energy management firms like Active Business Services suggest that businesses, no matter their size or industry, can benefit from an energy audit, which can help determine baseline energy use and offer a clear outline for ways to save energy in the workplace.

Another suggestion for saving money is to reduce peak demand. Although that can be a challenge for customer-facing businesses, factories can reduce demand by staggering work hours and running heavy equipment in off-peak hours, such as the early morning and evening hours.

Switching to natural gas is another money-saving tip. Although many Canadian households have already made the switch to gas, Canada natural gas also has its place in the country’s industrial sector. For example, heavy-duty fleet owners have switched their trucks and buses to natural gas to reduce costs and cut greenhouse gas emissions. It’s estimated that using natural gas as a fuel source reduces greenhouse gas emissions by 20% to 25% when compared with diesel. There are more than 12,000 natural gas vehicles in Canada.

Natural gas is also used extensively in the industrial sector as a heat source and as a feedstock for a number of industrial processes in the petro-chemical industry.

Natural gas is also commonly used to heat large spaces, such as hospitals, schools, warehouses and office buildings. Since natural gas is the only energy source with a high enough calorific value to replace heavy fuel oil, industries use it not only to heat air and water, but also for processing methods.

Although natural gas has its advantages, it is also a fossil fuel, and, like oil, can face extreme price fluctuations depending on the season. Colder weather boosts demand, and therefore prices. The opposite is true in the summer months. Another reason why taking advantage of the services of an experienced energy management firm can be beneficial for businesses and their bottom line.