Business Energy For Manufacturers
Manufacturing is part of the lifeblood of the UK’s economy, employing around 2.3 million people here in the UK. The industry is especially impacted by technology advances, environmental regulations, and sustainability targets – not to mention rising energy costs.
That’s why we work hard supplying business energy for manufacturers to find opportunities to procure more competitive contracts, identify cost-saving initiatives and drive changes to reduce carbon emissions for good. Our experts are on-hand to help you make the most of your energy.
Is your manufacturing business ready to get to grips with utility management?
Business Energy Challenges For Manufacturers
Energy-intensive production
The processes used within the manufacturing industry are often energy-intensive. This can be due to the heavy operations, complex processes, energy-intensive materials, high heat requirements or continuous operations.Â
Whether that’s car manufacturing, steel fabrication or animal feed production – it’s more than likely that your energy charges are amongst your biggest overheads.
The manufacturing sector is renowned for being among the most energy-intensive industries (EII). It’s one that is most impacted by escalating energy prices. That’s why it is extremely important to pay attention to your energy contract costs and identify potential savings.
Energy efficiency and compliance
Upgrading to more efficient technologies, although expensive, is important to remain competitive and optimise your energy efficiency.
With the environmental regulations that circulate in the manufacturing sector being so tough, it’s vital that you are kept up to date. If your organisation lacks awareness or expertise in monitoring your efficiency and energy consumption, it can become detrimental to your business. And, with the increasing pressure to reduce your carbon footprint, it’s all the more important to implement an effective energy management system.
Production upgrades and technology advancements
With many operations running 24/7, it’s no surprise that there is an ongoing requirement for process maintenance and modifications. Although production upgrades can cause disruption to production, it is essential in order to be competitive within the industry.Â
As well as having the latest and most efficient operations, there is a consistent drive for the digital transformation and smart manufacturing processes, such as the use of IoT and AI.
The investment in new machinery and implementing the latest technology can make running a manufacturing facility costly.
Energy Audits
If any of the above challenges resonate with you, it’s time you got in touch with our team to conduct an energy audit.Â
We can gain a thorough understanding of your consumption history and help you with your forecasting. The result? – Gain a clear energy management strategy and improve your overall energy efficiency.
Discover the benefits of a comprehensive Energy Audit.
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Why Choose Consultiv Utilities?
Given the manufacturing industry’s crucial role in the UK economy, we are committed to easing the burden of utility management for these businesses, allowing them to concentrate on their core operations.
Our expertise is to secure utility contracts that are customised to your specific requirements. With a broad network of reliable suppliers, we take the time to thoroughly understand your business, offering competitive quotes tailored to your needs. Let us manage your utility needs, so you can focus on what truly matters – your business.
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FAQs: Business Energy for Manufacturers
What is business energy for manufacturers, and how does it differ from standard business energy?
Business energy for manufacturers is designed to support organisations with high or complex energy consumption, such as continuous production lines, energy-intensive processes, or multi-site operations. Unlike standard business energy contracts, manufacturing-focused energy solutions account for half-hourly metering, peak demand, load profiles, and operational risk.
This allows manufacturers to align procurement and energy management with production cycles rather than using generic tariff structures.
Why is energy such a major cost for manufacturing businesses?
Energy is often one of the largest operational overheads for manufacturers due to high power requirements, extended operating hours, and specialist equipment.
Processes involving heat, pressure, refrigeration, or automation can drive sustained consumption levels. Without active management, manufacturers may also be exposed to inefficient contracts, rising wholesale prices, and avoidable charges, making strategic energy planning essential.
How can manufacturers reduce energy costs without disrupting production?
Reducing energy costs does not necessarily mean cutting usage. Many manufacturers achieve savings through improved procurement strategies, better contract timing, capacity analysis, and energy efficiency projects.Â
Reviewing consumption data, understanding peak demand, and aligning contracts with operational requirements can lead to meaningful cost reductions while maintaining output and compliance.
Are manufacturers subject to additional energy regulations in the UK?
Yes. Manufacturing businesses are often affected by additional regulatory frameworks due to their energy usage and environmental impact.Â
This can include obligations under schemes such as the Climate Change Levy, Energy Savings Opportunity Scheme, and wider carbon reduction requirements. Oversight and guidance are provided by bodies such as Ofgem and the Department for Energy Security and Net Zero, making regulatory awareness an important part of energy management for manufacturers.
What is the Climate Change Levy, and how does it affect manufacturers?
The Climate Change Levy is a UK tax applied to electricity and gas used by businesses, including manufacturers. Energy-intensive manufacturers may be eligible for reductions or exemptions if they meet specific criteria.Â
Managing CCL exposure correctly can significantly reduce energy costs, but eligibility rules are strict and require accurate data, reporting, and ongoing compliance. Guidance on the levy is published via HM Revenue and Customs.
Do manufacturers need energy audits?
Many manufacturers are required to carry out energy audits, particularly those that qualify under the Energy Savings Opportunity Scheme. Even where audits are not mandatory, they are highly beneficial.Â
An energy audit helps identify inefficiencies, improve forecasting, support investment decisions, and demonstrate compliance with regulatory expectations. ESOS guidance is overseen by the Environment Agency.
How does energy risk management apply to manufacturing businesses?
Manufacturers are more exposed to energy market volatility due to high consumption and long-term planning requirements.Â
Energy risk management focuses on controlling price exposure, improving contract timing, and supporting budget certainty. This is particularly important for manufacturers operating in competitive markets where energy price fluctuations can directly affect margins and long-term viability.
Why should manufacturers work with a specialist energy consultancy?
Manufacturing energy requirements are rarely straightforward. Working with a specialist consultancy ensures that procurement, compliance, and energy management decisions are informed by accurate data, regulatory knowledge, and sector experience.Â
This supports better decision-making, reduces risk, and helps manufacturers remain competitive in an evolving energy landscape.
