GuideApproved
Energy costs jumped — where do you start?
A step-by-step method to tell whether rising energy costs come from tariffs, equipment or usage patterns.
3 Sept 20266 minValid until 3 Oct 2027
Why it matters
For many manufacturers energy is the second-largest variable cost after raw materials. A 20–30% jump usually has one of three causes: a tariff change, falling equipment efficiency or a changed usage pattern.
Step 1: Separate cost from consumption
Put the last 12 months of bills side by side and record kWh and amount separately. If consumption is flat but cost rose, look at tariffs or demand charges.
Step 2: Relate consumption to output
Compute energy per unit produced. If it rises, efficiency has dropped.
Step 3: Check the big consumers
Air compressors, boilers, chillers and large motors typically use more than 70% of the energy.
Step 4: Manage peak hours
Shifting flexible loads to off-peak hours can save money without capital spending.
Suggested actions
- Line up the last 12 months of bills and separate kWh from cost
- Track energy per unit produced every month
- Run a leak survey on the compressed-air system
- Move flexible loads to off-peak hours
Possible causes
- Tariff increase or exceeding the contracted demand
- Compressed-air or steam leaks
- Lower efficiency of compressors, boilers or motors
- Shift changes moving consumption into peak hours
Required documents
- Electricity and gas bills for the last 12 months
- Monthly production report
- List of major equipment and rated power
Warnings
- Check safety requirements and manufacturer guidance before changing equipment settings
