Daylight Savings: How much is it costing your small business?

December 28, 2010 § Leave a comment


Like most people I have no issues with clock change when we ‘fall back’ but I always seem to really need that extra hour when we ‘spring forward’. And like most people the point is still lost to me (I hear farmers are the ones who really need it). Anyway, one thing I do know is that those additional hours of darkness when we ‘fall back’ have an impact on most businesses that never gets the mention its due. Without extending your hours of operation (in the 3-4 months of a later dawn and an earlier dusk) daylight savings can lead to as much as $3000 in increased expenses!.

I’ll use the example of one of customers who uses an additional 210kwh during daylight saving periods. At 6.2c/kwh for the 240 additional hours of having the lights on, the addition to their bill is a whopping $3,124. An increased expense without increasing revenue/profitability is not a good thing for any business! And that money could easily be an additional employee for the holiday shopping period where your store location needs to keep customer service high and shoppers shopping!

One way to reduce this expense is to use less electricity over the period. Where you cannot reduce your electricity usage take the few minutes to search and compare rates from several suppliers to reduce the expense on But you can definitely reduce your energy usage, all it takes is a little effort.

What effect does daylight savings have on your business?

Enjoy the holiday season!

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This electricity thing Part 2

December 14, 2010 § Leave a comment


The definition of the Smart Grid varies depending on who you are talking to. It basically means a more responsive, customer centric electricity industry. But for adoption of the products/services the grid will offer, you and I have to understand in more depth. This is where I think the utilities trying to force these changes down our throats as consumers will have to change their tactics: the days of the unidirectional relationship with the utility is over. Up until now the most we ever had to do with our electricity supplier was

–          We paid the monthly bill

–          We called to complain when the bill seemed exorbitantly high (even if we didn’t know what the bill amount was actually supposed to be)

–          We called to complain when we lost our electricity supply

The new engagement between the utility and the consumer (you and I) will be one where the utility recognizes that

  1. We do not have to get our supply from one utility/supplier so they have to be on their best behavior. Other sources of electricity are/will be coming online. This means choice. This means competition.
  2. Your usage information (when do you run my dishwasher?) will have to be used to improve how you’re treated as a paying consumer
  3. We the paying consumers will demand more. Period.


So what elements of the ‘smart grid’ will force this shift of power? Not the tools, though I will give examples of those, but the underlying drivers;

  1. Your electricity (and soon other utility) usage data: with increasing ability to measure how much electricity we use in real time (from the meter or equipment in your house), the utility will know how much more/less electricity to generate at what time of the day and more effectively manage their fuel usage. Think of the utility as a bus driver who only drives when the passengers have somewhere to go. And not idling the engine waiting for the passengers to go somewhere. And therefore conserving fuel. This also means the bus in our example (or turbines for a power plant) will last a bit longer. This makes the bus company, the bus driver and the passengers happy when the bus eventually starts moving and running efficiently.
  2. Analytics (or the sense we make of the information around us): the level of sophistication of data mining algorithms that predict/forecast trends or even just make sense of the present is quite astonishing. The shame is that most of this strength has not been widely utilized in providing value to electricity consumers (it’s already being applied for generation forecasting and pricing by the utilities). But this is changing. The insight that can be drawn from our usage will enable the utility to share more with us the consumers and enable us make better decisions. You know that reaction you have when you look at your cell phone bill and see that you spent too much time shooting the crap with ‘you don’t even remember who’ on a Tuesday afternoon (peak time)? That decision you made to move that call to much later in the evening (off peak)? You’ll soon start to have those reactions when you see more usable information on your electricity bill (or the charts that will represent that bill through your web based account).
  3. The most important driver of the shift of power from the utilities to the consumer is the consumer:  Yes, you. You are more aware of what is going on. You have information at your fingertips and have a better understanding of what that information means. You engage your politic representatives and ask them to implement the policies that are changing your relationship with any business that tries to sell to you (or at least you try to), you vote with your money by only engaging with vendors that value you as a customer. And you will come to demand even more from your utility. You want ‘cleaner’ electricity. With no increase in cost.

All these things are forcing a gradual shift that the utilities are starting to feel. Can you feel the shift too?

School House Rock: Electricity

December 4, 2010 § Leave a comment

Fun with electricity. Not a sentence you’ll hear often…

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