How does your business respond to power cuts and internet outages?

No business can operate without electricity. 64% of entrepreneurs expect a power cut to cause problems. But a power cut does not affect every entrepreneur equally. You can imagine that an ice-cream shop would have to close without power and would lose the stock it has in the freezer. During the same power cut, a gardener or painter would probably be able to carry on working normally.

How important are electricity and the internet to my business?

The first question you need to answer is: are electricity or the internet essential for the key processes in my business? If you find it difficult to carry on without electricity or the internet, consider which solution suits you best.

Identify your critical processes

The difference lies in a business’s critical processes. For an ice cream shop, refrigeration – and therefore electricity – is indispensable. Without it, there is no business, no stock, and a significant financial loss. For gardeners and painters, the situation is different. For them, prompt delivery or enough staff are more important.

In the following calculation example for an ice cream shop, you can see that a power cut directly results in high costs and a loss of turnover.

On a busy summer’s day, an ice cream shop generates a turnover of €500 per hour and, by closing time, has missed out on €6,000 in revenue. And if all the ice cream in storage melts, the power cut will also impact sales for the coming days. Meanwhile, its staff costs and rent continue as normal.

Which systems will continue to operate, and which will not?

The consequences of a power cut vary from business to business. So check what needs to be monitored in your business. Here are a few examples to help you get started:

• Security systems. Are cameras, alarms, access control systems, and electronic doors still working? Check whether emergency batteries are required and confirm that your system is still connected to the control room.
• Production machinery. Is a reset required? Can the machine restart automatically, or do you need a technician? How can you prevent downtime from causing damage to your product?
• Payment systems. Can your customers still make payments? Does your point of sale payment system have an offline mode? Think about a solution to make sure sales can continue.
• Software and cloud storage. Which systems continue to operate offline, and which come to a standstill? Do online synchronisations continue? Check whether you still have access to important data without the internet and see if your offline backup is good enough.

Will you have problems with equipment, systems, or processes due to a power cut and loss of internet? Work with the supplier or a specialist to investigate possible solutions.

Check your systems

You may have noticed at home that it is only during a power cut that you really realise how dependent you are on electricity. It is probably the same within your business. Of course, the lights go off, but the lack of power also affects less obvious things.

To really understand what happens during a power cut, you can organise a practice exercise. This means unplugging everything and carefully checking what still works and what does not. This will help you find out, for example, whether you need to restart your servers manually and whether your machines will run on a generator.

Do I need emergency power or internet?

Do power cuts cause serious problems for your business? If so, you may want to invest in emergency power or a solution to stay online during an outage. There are various options available, ranging from small investments to extremely expensive. So make sure you carefully assess what you really need. A few possibilities for emergency power are:

1. UPS

This small battery unit is placed between the socket and your equipment. In the event of a power cut, the UPS switches on immediately so that your equipment continues to run.
Suitable for: point of service payment systems, computers, or temperature monitors
Duration: operates for approximately 30 minutes
Cost: €80 to €500 euros

2. Portable power station

A large, portable battery with sockets. Can be charged via mains electricity or solar panels.
For: Small refrigeration units, lighting
Duration: operates for up to 1 day
Cost: €200 to €2,000

3. Generator

A compact petrol-powered engine. Supplies electricity but does emit exhaust fumes.
For: equipment in a small shop
Duration: operates for as long as there is fuel
Cost: €400 to €1,500 

4. SME-sized home battery

Choose the type with an emergency power switch. This takes over the power supply within a second in the event of a power cut. The battery is often connected to solar panels.
Suitable for: equipment in a small shop
Duration: operates for 4 to 48 hours
Cost: €4,000 to €12,000 

5. Industrial diesel generator

When the power goes out, the generator starts up. Within 15 seconds, everything in your premises can be up and running again.
Suitable for: a large supermarket or industrial bakery
Duration: operates for as long as there is fuel
Cost: €10,000 to €40,000

How can I work online during an internet outage?

Much data and many systems operate in the cloud or via an internet connection. Without the internet, you will face problems. If you want to prevent this, consider the following solutions:

1. Router with failover

A router fitted with a SIM card. The SIM card provides 4G or 5G connectivity as soon as your usual connection is lost.

2. Satellite internet

A small satellite dish on your roof connects to thousands of small satellites in space. You are independent of your usual source. Monthly subscriptions start from €50, and the dish costs around €400.

3. DSL or cable

Take out a traditional subscription and connect the telephone line or coaxial cable to your router as a backup.

4. Hotspot

In an emergency, your mobile phone can act as a hotspot with 4G or 5G. Keep in mind, however, that the speed of your mobile internet will drop rapidly in the event of a major outage.

Will I be compensated for any damage?

If you suffer financial damage following a power cut (caused by your stock going bad, for example), you can make a claim through your building insurance or your inventory insurance. You are also entitled to compensation from your electricity suppliers. Find out how much this is on the website of the Netherlands Authority for Consumers and Markets (in Dutch).