As we approach winter 2024, businesses need to strategise effectively to navigate the complexities of energy pricing. The energy landscape continues to evolve, influenced by various factors such as geopolitical events, supply chain dynamics, and the ongoing shift towards renewable sources. Here’s what businesses should keep in mind to manage energy costs this winter.
Understand market trends
Historical data analysis
Review historical energy price trends during winter months. Typically, demand increases during colder months, driving prices up. Understanding these patterns can help businesses anticipate potential cost increases.
Current market influences
Stay informed about current events that could affect energy prices. Geopolitical tensions, changes in legislation regarding energy production, and fluctuations in oil and gas supply can all impact costs.
Assess Your Energy Usage
Conduct an energy audit
Perform a comprehensive energy audit to identify usage patterns and areas where efficiency can be improved. This could involve examining HVAC systems, lighting, and production processes to uncover opportunities for reducing consumption.
Benchmarking
Compare your energy usage against industry standards. This benchmarking can reveal whether your business is on track or if there are significant areas for improvement.
Explore energy procurement strategies
Fixed vs. variable pricing
Consider your energy procurement strategy. Fixed pricing can provide stability against market fluctuations, while variable pricing might offer savings if the market drops. Evaluate which option aligns best with your risk tolerance and business model.
Long-term contracts
If you anticipate rising prices, entering long-term contracts with energy suppliers can provide predictability in budgeting and potentially save costs over time.
Invest in energy efficiency
Upgrade equipment
Investing in energy-efficient appliances and systems can reduce consumption significantly. Look into incentives and rebates offered by governments or utilities for energy-efficient upgrades.
Smart technologies
Implement smart technology solutions that monitor and manage energy usage in real-time. These tools can help optimise consumption patterns and reduce costs, particularly during peak usage times.
Diversify energy sources
Renewable energy options
Consider integrating renewable energy sources, such as solar or wind power. Many businesses are finding that investing in renewable energy not only reduces costs in the long term but also enhances their brand image as environmentally conscious.
Backup energy sources
Having backup energy options can help mitigate risks associated with supply shortages. Explore options like battery storage systems to store energy during low-demand periods for use during peak times.
Prepare for regulatory changes
Stay updated on legislation
Energy regulations are continually changing. Keeping abreast of local and national legislation can help businesses prepare for compliance requirements and potential cost implications.
Incentives and grants
Look for government incentives or grants aimed at encouraging energy efficiency or renewable energy adoption. These programs can provide financial relief and support your sustainability goals.
Communicate with employees and stakeholders
Energy conservation culture
Foster a culture of energy conservation among employees. Simple actions, such as turning off unused equipment or optimising heating and cooling, can lead to significant savings.
Transparent communication
Keep stakeholders informed about energy strategies and initiatives. Transparent communication can enhance buy-in and promote a collaborative approach to energy management.
Winter 2024 presents both challenges and opportunities for businesses navigating the energy market. By staying informed, conducting thorough assessments, and implementing strategic energy management practices, companies can mitigate rising costs and enhance their resilience. Preparing now will not only help manage expenses but can also position businesses for long-term sustainability in an increasingly volatile energy landscape.
As we brace for the cold months ahead, the actions taken today can make a significant difference in how businesses manage their energy resources and financial health in the future.
If you're looking to save money on your energy bills then why not get in touch today? The relationships Resolve Energy has developed with over 24 of the UK’s biggest business energy suppliers allows our energy experts to source the best business energy rates available for your company right when you need them. Request a free quote today and start saving money on your energy.
