we can help your business…here’s how

Autumn/Winter 2011

LiberateJoin the campaign to cut red tape

SimplifyWhy a fixed-price contract may make sense

NetworkUsing social media to help win business – and you could win an iPad

Be inspired to:

Telephone calls: We may monitor and/or record calls for security, quality or training purposes. Calls from BT landlines to numbers beginning with 0800 or 0845 may be free. The price of calls may vary with other operators and calls from mobiles may be considerably higher. Please check with your operator for exact charges.Editorial content provided by Susannah Lawson & Associates (www.slcommunications.co.uk). Npower Direct Limited (registered in England and Wales No.3782443) and associated companies. Registered Office: Windmill Hill Business Park, Whitehill Way, Swindon SN5 6PB.

NetworkFacebook and Twitter aren’t just for having fun – businesses can use social media to drive sales, as we discover on page 8.

SimplifyFind out why a fixed-price, fixed-term contract can make sense on page 7, and also consider Direct Debit to make bill-paying easier – and cheaper (see the back cover).

LiberateFed up with rules and regulations? Join the campaign to cut red tape for smaller businesses (see page 4).

This issue, we also look at easy ways to help you save energy (page 11), and offer you the chance to win an iPad (page 14).

We hope you enjoy this issue.

Pam Andrew Customer Service Manager

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Energy Market View

What’s inside Energy market view 3

Hot topic: cutting red tape 4

Spotlight on: fixed contracts 7

Social networking for business 8

Energy savers 11

Meter reading: get accurate bills 14

There has been good and bad news for businesses over their energy bills. The good news is that Ofgem has acted over ‘roll on’ contracts, where companies that did not act quickly at the end of a fixed-term contract period found themselves automatically placed on a new – often more pricey – contract for another year. Now all suppliers must notify customers and provide new terms in advance, between 60 and 90 days before the end of the fixed-contract term. Customers then have 30 days to act (we discuss fixed-term contracts in more detail on page 6).

Local supply costs unifiedThe bad news is that businesses have seen their energy prices rise recently, and for some they have become more volatile. That’s not just because energy generators are increasing prices. Network companies have changed the way they charge for their services. Previously, each local network operator – which supply energy from the main National Grid to your home and business – had their own methodology for calculating charges, which make up about a tenth of bills. A new methodology has made charges more consistent

All changeNew rules on energy contracts, a change to the way local supply charges are calculated and new legislation to help smaller businesses become more energy efficient – there’s lots going on in the energy market this quarter, as Janet Wood reports. across the country, and Distribution Network

Operators (DNOs) say that overall they are “revenue neutral”. But the old charges worked more like a postage stamp (i.e. one price to go four miles or 400 miles), while the new ones are more cost-reflective, so for some companies those charges have increased, while for others they have fallen.

Green deal for SMEsMeanwhile, there is good news on energy efficiency. The government has been working to improve domestic energy efficiency for years, and has tried to incentivise larger businesses to take action. But small and medium-sized enterprises have missed out on help. That could change next year when the government implements the so-called ‘Green Deal’ –aimed at all businesses, as well as households .

Making small businesses more energy efficient has proved hard – it’s not simply a case of installing insulation as business energy use is more varied than domestic. But the Green Deal should allow companies to defer the capital cost of taking action. They will be able to install high-efficiency equipment with no upfront payment, instead repaying a low-interest loan out of savings on their energy bills. The scheme has potential, but final details of how it will operate have yet to be ironed out.

You could win the latest tablet technology from Apple simply by submitting a meter reading online.

Find out more on page 14.

Energy market viewWelcome

As the temperature drops, we focus on some ideas to inspire your business this winter

You could win the latest tablet technology from Apple simply by submitting a meter reading online.

Find out more on page 14.

Janet Wood is editor of Utility Week.

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According to research by the Forum of Private Business (FPB), red tape costs small businesses in the UK a staggering £16.8bn a year – an average of £14,200 per firm (source FPB July 2011). And because small businesses must commit time and resources to ensuring their compliance, they could be missing out on some £30bn of business opportunities.

Counting the costThe cost of compliance in 2011 is estimated to be only 1% higher than it was in 2009. However, as Jane Bennett, FPB Head of Campaigns, observes: “The increase is greater in real terms because economic activity, which drives the need for compliance, has shrunk significantly since 2009.

“Despite several government initiatives – some more effective than others – it is clear that we are heading in the wrong direction as far as reducing regulation for small-business owners is concerned. We want the voices of the UK’s business owners to be heard.”

The FPB research found that administering tax created the biggest burden (£5.1bn), followed by employment law (£4.2bn) and health and safety law (£3.8bn). Some 84% of FPB members reported spending more time complying with legislation

Cutting the red tape

Too many regulations can frustrate business owners and managers by placing unnecessary obstacles in their way, which is why business groups, the government and npower have all joined the fight against excessive red tape. Mark Williams reports.

“Of course, we need proper standards, in areas such as fire safety and food safety. Where regulation is well designed and proportionate, it should stay. But it’s hard to believe we need government regulations on issues such as ice cream van musical jingles. That’s why I want us to be the first government in modern history to leave office having reduced the overall burden of regulation.”

As part of the campaign, every few weeks regulations affecting a specific sector will be published on the website – redtapechallenge.cabinetoffice.gov.uk – as well as legislation falling into six cross-sector themes including employment law, equalities, health and safety and environmental law. Businesses can give their views about what legislation should be simplified or scrapped. The government has promised to act on feedback received.

Retail therapyThe first sector to face review is the retail industry. In July, the government announced a comprehensive set of deregulatory proposals, after receiving almost 9,000 comments on the Red Tape Challenge website between 7 April and 10 May.

“The final ambitious deregulation package sets out changes to more than 160 rules and regulations affecting the retail sector – simplifying, amending or abolishing those that are unnecessarily burdensome, overly bureaucratic or simply redundant,” explains a government spokesperson. “This package removes over half the 257 pieces of retail legislation under consideration from the statute book, and simplifies or improves at least 34 of the remainder.”

Hot topicHot topic

this year compared to 2009, while 67% were hiring external consultants to avoid compliance problems.

Government actionIn the lead up to the 2010 General Election, one of David Cameron’s key promises to business was to reduce red tape.

In April 2011, a new campaign called the Red Tape Challenge was launched. “We need to tackle regulation with vigour; to free businesses to compete and create jobs, and to give people greater freedom and personal responsibility,” said David Cameron, speaking at the launch.

“ Red tape costs small businesses in the UK a staggering £16.8bn a year – an average of £14,200 per firm.”

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When economic times are tough and budgets tight, accurate cost forecasting is a helpful tool to successfully manage cash flow. Fixing costs where possible can provide greater predictability over outgoings. But like any fixed contract – whether it be a fixed-rate mortgage or a fixed-rate energy deal – once it comes to an end, you are moved on to higher ‘out of contract’ rates unless you renew.

“Fixing your energy costs – so you know exactly what unit price you will be paying for the duration of your contract – makes sound commercial sense for many businesses.” says Alison Sidaway, Head of Business Pricing of npower’s SME team.

The worst-case scenario budget-wise is letting your contract lapse. “This means we are no longer able to buy energy in the most cost-effective way because we don’t know how long we will be required to supply those customers, so cannot accurately predict future volume requirements,” explains Alison. The cost for this unpredictable energy therefore switches to higher default rates until a new contract is signed.

Better budgeting“However, signing a new fixed contract* protects your business from price rises in the energy market, giving you a set unit rate for the entire duration of the contract,” says Alison.

npower offers businesses fixed-price contracts* for a range of time periods – for example, 12 months, two years or three years. “We offer the best price we can according to current market conditions and what

Energy contracts: is it time to fix again?

Renewing your fixed-term, fixed-price contract* is the smart choice if you want to protect your business from future energy price rises and take advantage of greater budgeting certainty.

experts predict will happen to future energy prices,” explains Alison “As this changes from day to day, it’s best to call us to see what’s on offer.”

Spotlight on…Hot topic

For more information on fixed term energy contracts call us on

0845 078 0037†

An example of how this could workOn 1st April 2010, Customer A and Customer B reached the end of their existing npower contracts.

Customer A agreed a new fixed-term contract for 12 months at 15.1p per unit.

Customer B allowed their contract to lapse without agreeing a new contract and was placed on default rates of 18.5p per unit.

Over the next 12 months, both customers used 20,000 units of electricity.

For the units they used over the twelve months of their fixed-term contract, Customer A was charged £3,020. For using the same amount of electricity over the same period as Customer A, Customer B was charged, £3,706.

• SoCustomerAsavedalmost£700thankstoagreeing a fixed-term contract with npower. And after VAT at 20% was added to both customer’s bills, Customer A realised a further saving of nearly £140, making a total yearly saving through their fixed term contract of over £800.

New regulations from October 2011Despite the Red Tape Challenge shedding regulations, new laws are still created each year. Most new laws affecting businesses come into force on one of two common commencement dates – 6 April and 1 October. Key changes this October include:

• From 1 October, the main National Minimum Wage rate for employees aged 21-plus will rise to £6.08 (from £5.93); the 18-20 rate (currently £4.92) will increase to £4.98; while the 16-17 rate for workers above school-leaving age but under 18 will reach £3.68 (from £3.64). Apprentices aged below 19 (or older, but in the first year of their apprenticeship) must be paid £2.60 per hour (a 10p increase).

• Agency workers must be granted the same (or “no less favourable”) rights as permanent colleagues once they have completed 12 weeks’ assignment – including pay and holiday entitlement. Agency workers must be given access to the same facilities (e.g. staff car parking spaces) as permanent employees and be told about permanent vacancies.

• Following government consultation on RIDDOR (the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995), from 12 September 2011 work-related injuries and incidents must be reported via the Health and Safety Executive (HSE) website (currently employers can use telephone, email, fax, post and online forms). The aim is to make the statutory reporting of work-related injuries quicker and more convenient for business owners and managers. You can sign up to receive regulation

update emails on the MyBusiness page of the Business Link website

businesslink.gov.uk

npower lends supportnpower was an early supporter of the government’s anti-red tape stance, launching its own campaign specifically for customers – the Red Tape Challenge: Have Your Say.

“Our campaign gives businesses the opportunity to feedback on current and future energy regulation,” explains Wayne Mitchell, npower Director of Industrial and Commercial Markets. “We’ve collected comments from business customers about the energy policies they think should be scrapped, merged with existing regulation, simplified or left as they are.”

Findings have been submitted to the government ahead of the utilities and energy sector’s consultation deadline on 27 October 2011.

From October 2011 new minimum wage rates for employees come into effect - see box opposite for more information.

*Price increases during fixed terms: Contract charges on fixed contracts may be subject to change in the event of legislative, regulatory or third party changes occurring. †Phone calls: We may monitor and/or record calls for security, quality or training purposes. The cost of calls to 0845 numbers may vary so please check with your provider for exact charges.

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Whereas years ago there was much cynicism about the real business benefits of online social networking, now businesses large and small use it to raise their profile, enhance their reputation, reach customers, strengthen relationships and boost website traffic. But do online social networking websites really enable you to sell more?

To reap the rewards you must invest enough time and it takes careful planning, targeting and monitoring. Your messaging must also be carefully pitched, (too much overt selling is a no-no). And one of the key advantages is that using social media websites is free (apart from the time you invest).

Widely used tool“Some cynics will still tell you Facebook is for teenagers, but current data shows almost a fifth of users are over 45 years old,” says expert Susan Hallam, managing director of Nottingham-based internet marketing consultancy Hallam Communications (@HallamBiz). “And Twitter isn’t just for teenagers either, it’s a widely used business marketing and PR tool.”

Susan has herself used social media to acquire clients. “Social media encompasses much more than posting on networking sites, it also means sharing content, such as videos on YouTube or PowerPoint presentations on SlideShare. Blogging can be another powerful communication tool that can give you higher search engine rankings.”

Coffee break Sadie Hopkins started using Twitter in 2009 to publicise her business, York Coffee Emporium. “I was slightly cynical, but started using Twitter mainly through boredom in the winter when footfall in my shop was slow. At the very least it would help with my website search engine optimisation,” I thought.

Her business account (@york_coffee) now has 1,600-plus followers on Twitter (she has hundreds more on her private account @fickle_barista). “At first, I didn’t know how it worked, but following other brands showed me what worked and I started operating my Twitter in that way.

“No one wants to read dull business message feeds. Your Tweets (Twitter messages containing fewer than 140 characters) must have personality. You shouldn’t Tweet too much, you risk boring your followers. You’ve got to engage your followers and reply to their tweets. The whole point is to get people to like you.”

Sadie says about half of her new customers are generated by her Twitter and Facebook business pages. “I use Twitter as a shop front, I closed my actual shop, and now sell exclusively online.

People can Tweet questions to me or just say hello. I see Twitter as ‘counter space’ between me and my customers.”

Time commitmentSadie created her own Twitter and Facebook pages very quickly. Some days she doesn’t Tweet if she’s busy or lacks anything engaging to share. At other times she spends a few hours on Twitter (“usually via the UberTwitter app on my Blackberry phone”).

“You’ve got to put in the effort if you are to enjoy the benefits. If you don’t have the time or your heart is not really in it, don’t do it. Don’t pay someone else to operate a Twitter account for you either, it shows. You’ve got to put something of yourself into online social networking.

“ Have fun with it and share your passion for your business. If you show how much your business excites you, people will warm to you, possibly buy from you and stay loyal.”

Could social media marketing benefit you?

For many businesses, online social networking websites such as Twitter, Facebook and LinkedIn are important PR, communication and marketing tools. But, asks Mark Williams, do they really help to boost your sales?

But how effective are Facebook, Twitter, etc as sales generators? “Facebook now has fully integrated e-commerce functionality, which means customers can buy directly from your page, it’s very convenient.”

“ But although it can be part of the sales cycle, simply broadcasting sales messages all day on social media websites can work against you. The aim should be to build relationships and trust, to get people to like your brand.

Your business is seen to add to the conversation by sharing useful information, and this familiarity means you’re more likely to be front of mind when someone wants to buy a product or service like yours.”

User recommendations and referrals are key to online social media and Susan sees this as “an extension of good-old word-of-mouth. Trust is essential in business and social media is a great way to evidence trust through referrals, recommendations and reviews,” she stresses.

“ Some cynics will still tell you Facebook is for teenagers, but current data shows almost a fifth of users are over 45 years old.”

Susan Hallam, Managing Director of Hallam Communications

Online businessOnline business

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Energy saversOnline business

Case study

“I started my Redditch-based bespoke cake business, Bunz On The Run, in February 2011, as I was being made redundant,” recalls Emma Stone. “I rekindled my love for baking in 2009 when I made my sister’s 30th birthday cake. Later it offered me the chance to start my own business.”

Emma uses Facebook as her main marketing tool. “It’s free. And as a start-up I don’t have any marketing budget. Facebook is open-access, so you don’t need to be signed up to see my business page. It can be found via search engine, which means potentially it can be viewed by a vast number of people.”

In a sector that relies on word-of-mouth rather than paid-for advertising, Emma says Facebook really helps. “It enables people to ‘like’ my business and receive updates. It also allows feedback. Customers like to see pictures of the cake I’ve created for them and add comments, which generates interest from other people.”

Facebook is more of an engagement tool rather than a pure sales tool, says Emma. “The page does generate enquiries and sales, but it’s more a question of staying ‘front of mind’ with my ‘likers’ (142 and counting) and users (190 and counting), so when they need a cake, they contact me.”

Emma updates her page frequently. “It’s like having a conversation online with existing and potential customers. I spend less than an hour a day on Facebook, unless I’m uploading photos of orders with comments.”

Would she recommend Facebook as a marketing tool? “Only as part a wider marketing and engagement strategy,” she replies. “Each generation is becoming more internet-oriented, so even small businesses need to have some presence in the social media world,” she concludes.

Marketing mixHallam says online social media should not be seen as the solution to marketing your business, but it should be part of the solution. “As with all of your marketing activity, start by identifying your objectives. Don’t just use social media because it’s trendy, focus on what you need to achieve. Create a plan that will help you to achieve those objectives.

“ Finally, you’ve got to measure your success. Has using Twitter, Facebook or LinkedIn generated good leads or increased visitors to your website? You can’t improve what you don’t measure.”

See over page to find out how a Leeds restaurant could save £4,705, and for more energy saving ideas in a free npower energy saving guide.

Case study

“I started my Redditch-based bespoke cake business, Bunz On The Run, in February 2011, as I was being made redundant,” recalls Emma

Warm without wasteEnsure thermostats are set to the desired temperature. For every 1°C above 19°C, you could be adding 8% to your heating bill. For warehouses, 16°C is usually acceptable and 20°C for offices. Where radiators are on full without any form of regulation, fit thermostatic radiator valves. For hot water, between 60°C and 65°C is suitable for catering and washing to avoid Legionella.

Shut out the coldKeep doors closed between heated and unheated areas. This could reduce your energy bills by around £40-£80 on a typical cost of £800. And by fitting self-adhesive draught excluders to outside doors and also to windows, you could save a further £40-£80.

Switch it offOnly switch on what you need – and switch off what you don’t. A photocopier left on unnecessarily could increase your energy bill by around £194 a year, while a 17” tube monitor could waste up to £37 per year. Perhaps also encourage staff to have a ‘big switch off’ at the end of each working day.

Reduce winter fuel bills

Here’s how...

Access free energy efficiency advice For tips and advice on how to save energy – and money – visit the SmartStart section on our website at

npower.com/energyaudit

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Energy savers Energy savers

Husband and wife Francesco and Marta Mazzella began building their empire in 1998 by buying a café in the north Leeds suburb of Chapel Allerton. Soon they transformed it into an authentic Italian coffee shop and hugely popular pizza and pasta restaurant. “We created a little taste of Italy within a small but busy community,” Francesco recalls.

In 1999, buoyed by their success, the pair opened a new fine-dining restaurant in Chapel Allerton called Casa Mia Grande, with Bar Ischia soon opening next door. Seeking to extend their reach into vibrant Leeds city centre, in 2004 the Mazzellas opened the Casa Mia Millennium restaurant. Set over three floors, with its stunning décor, the award-winning Millennium also offers a coffee bar, mouth-watering deli and licensed bar.

Quick and convenient serviceThe restaurant business has always been tough, but in recent years it has been ruthless. Costs must be minimised if you’re to stand a chance of surviving in a sector in which most new ventures fail within two years.

To see what overhead savings he could make, Francesco called in npower to conduct an energy efficiency audit. The service is quick and minimises disruption to time-poor business owners. The audit provided much food for thought.

Here’s how an energy audit could help make significant savings for your business

In this issue we look at how a Leeds restaurant could save thousands of pounds with a few simple changes to the way they approach basic energy management.

Significant annual savingsnpower’s energy specialists discovered that the Millennium alone could make annual savings of around £4,700 – 20 per cent of its annual energy costs – through simple changes such as replacing 35 Watt halogen lamps with three Watt dimmable LEDs and adjusting air-conditioning temperatures to the optimum level.

Over heating – or over cooling – premises needlessly wastes money. For every 1°C above 19°C (i.e. a comfortable temperature) you set thermostats, you could be adding 8% to your heating bill. And in summer, for every 1°C below 24°C, you could also be adding 8% to your air-conditioning costs.

Simple measures – big differenceReviewing lighting can also pay dividends. Removing an unnecessary 100 Watt incandescent bulb could save about £20 a year, while swapping to an energy-saving bulb could reduce energy use by 75%. And simply ensuring that a hot water cylinder is well insulated could save up to £160 a year. All great news for cost-conscious business-owners.

“It’s been really interesting to see npower’s recommendations on where we could be making energy savings. We didn’t realise such simple measures could make such a difference.”

Francesco Mazzella, Manager of Casa Mia Grande

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Meter readingMeter reading

Win an iPad competition: Terms and conditions apply and are available at npower.com/yourread Closing date is 06/01/2012.

Read your meterTaking regular meter readings before your bill is due ensures your bills can be based on up-to-date consumption data rather than estimates. See opposite for a simple guide on how to read your meter.

Submit a reading now – and you could win an iPadIf you submit a meter reading online before 6 January 2012, you’ll automatically be entered into a prize draw to win an iPad. This portable tablet device lets you access emails and browse the internet on the move.

For your chance to winSimply visit

npower.com/yourread and submit your meter read.

Apps for SMEsIf you’re the lucky winner of our prize draw or already have a smartphone there are thousands of ‘apps’ you can download. Here are five that could make your working day just a little easier…

All available free for Android, Blackberry, iPhone and iPad.

1. Yell.com Two million-plus businesses are listed in this handy

directory, with profiles and mapped directions.

2. Dropbox Provides 2GB of ‘cloud space’, enabling you to

share large files online with clients and colleagues.

3. Rail Commute Allows you to find out when your next train is

due, what platform it will be on and information about delays.

4. ReQall Save your ideas, to-do lists and aide-memoirs

by voice or text with this handy user-friendly application.

5. Google Docs Enables you to view and edit Google documents

from your iPhone and cloud-save them for access from other devices.

Why pay more for your energy than you need to? By submitting regular meter readings you’ll only be billed for the business electricity and gas you’ve used. It’s simple to do and only takes a few minutes.

Get accurate bills How to read your meter

How to read a dial meter

• Notedownthenumbersastheyreadfromleft to right. Ignore the last red number.

• Adigitalmetercanbesingleortworate.

• Asingleratemeterhasonerowoffigures.

• Atwo-ratemeterhastworowsoffigures.One row is usually labelled ‘normal’ or ‘day’ and the other is labelled ‘low’ or ‘night’. Always take both readings.

Example of a single rate meter

In this example, the normal rate meter reading would be ‘25821’ and the low rate reading would be ‘90534’.

In this example, the meter reading would be ‘25821’.

How to read an electronic digital meterThe electronic meter can be single or two-rate (for electricity only). Each has just one row of figures. A two-rate meter will show the ‘normal’ or ‘day’ rate meter reading by default. Press the display button to see the ‘low’ or ‘night’ rate reading. Always take both readings.

2 5 8 2 1 0

2 5 8 2 1 Day / Normal09 0 5 3 Night / Low4 0

Example of a dial meter

The meter reading would be ‘13998’.

Adjacent dials turn in opposite directions

• Ignoredialsthatarered,don’thaveapointeror that have no numbers marked on the dial.

• Ifthepointerisbetweentwofigures,alwaysread the number the pointer has passed.

• Ifthepointerisdirectlyonanumberlookat the next dial to determine whether the number has just been passed. A higher number indicates that it has not been passed.

How to read a dial meter

1 3 9 9 8

10,000Dial 1 Dial 2 Dial 3 Dial 4 Dial 5

1,000 100 10 1kWh

Example of a dual rate meter

Here’s a quick guide to reading some of the most popular meters.

How to read a mechanical digital meter

How to read a dial meter

If in any doubt, please provide readings for all dials or call us.

Save time and money with Direct Debit

TrustOn certain tariffs you could pay 2% less for your electricity bills if you switch to Direct Debit. Because your payments become easier to administer, we can remove the surcharge that’s added to bills paid by other means.

ServiceSave time paying bills. With Direct Debit, the payment is automatic – so once it’s set up, you don’t need to do anything more.

ChoiceChoose the best way to pay. You can opt for variable Direct Debit and just pay for what you used in the previous month (if you’re billed monthly) or quarter (if you’re billed quarterly). Or for easier budgeting, you can pay the same amount each month or quarter throughout the year. Your account is then reviewed every six to eight months to ensure your monthly payment is appropriate.

†Phone calls: We may monitor and/or record calls for security, quality or training purposes. The cost of calls to 0845 numbers may vary so please check with your provider for exact charges.npm9668/11.11

To set up a Direct Debit, call us on

0845 166 3360†