It’s no secret retailers use an enormous amount of energy. Between lighting, heating, air conditioning and extended business hours, retail chain operators average 62 billion kilowatt hours of electricity per year, according to the US Energy Information Administration.

And with the price of oil—a commodity that influences the price of natural gas, which fuels electric power—hitting historical highs, market volatility is causing spikes in electricity rates, and nipping at retailers’ profits.

The catch-22 is that retailers are too busy checking inventory, attending buyer conferences, staffing stores and meeting payroll to worry about how much they pay for electricity. Instead, they simply send invoices to their accounts payable department, and end up getting zapped by higher utility expenses.

The good news: Implementing strategic cost-saving tips can help chain operators turn down the heat on energy expenses, and reap cool savings on their monthly utility bills—savings they can then use to build staff, increase inventory, and improve operations.

Plan For the Next Budget

First, retailers should review what they’ve spent the past year on utilities before planning their next fiscal budget. This includes analyzing the chain’s historical data to see what’s been spent and where owners and operators can save. Auditing a year of utility bills can also identify any discrepancies in the invoices month to month.

A thorough examination might find that a site was charged $1,000 more one month, when compared to the other months of the audit. Such discrepancies are probably the utility’s mistake, meaning cash is owed to the retailer. On average, auditing and uncovering discrepancies saves retailers 0.5% to 1.5%.

Reviewing historical data can also determine whether the sites are on a proper retail rate, such as for 24-hour operation or fluctuating hours, rather than a multifamily or industrial building rate. Putting sites on the correct rate can save retail owners as much as 1% to 2% per site.

For best results, retail operators should consider working with an outside energy management consultant. These experts know what to look for and how to dial down energy use.

Bypass the Utility

Retailers with sites in regulated markets are tied to the rate the utility sets, which makes reviewing historical data the only option. But retailers with sites in deregulated markets have more ways to save, and can beat the utility by procuring electricity through a third-party supplier.

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