The government’s latest announcement from last week shared plans to deal with the rising cost of energy, which is threatening businesses around the UK as we head towards winter. Here’s what you need to know about the new initiatives. We’ll also explain how it could help your organisation and what your next steps should be now.
While explicit support has been offered to UK households in the form of an energy price guarantee, there is still a lack of clarity around the relief being offered to commercial organisations, unfortunately. Thursday’s press release stated that businesses and public sector organisations will see “equivalent support” through the winter months. This suggests that energy costs for businesses will be capped at the same price per unit as consumers.
In addition to subsidising energy supply and suspending green levies, Prime Minister Liz Truss also announced that more will be done to increase supply and tackle “the root cause of the issue”. This will include the creation of a new “energy supply taskforce” dedicated to accelerating all sources of UK-generated energy.
Prior to the government’s latest announcement, it was expected that businesses were projecting more than a 500% increase in energy costs as of 1st October. Instead, a new six-month scheme for businesses and other non-domestic energy users will receive equivalent support. This will include charities, schools and other public sector organisations.
Beyond this 6-month initiative it has been stated that there will be “ongoing support” for vulnerable industries. It’s hoped that this short-term relief will be followed by a more sustainable, long-term solution. As this will help the thousands of organisations still recovering from the impact of the Covid-19 pandemic.
What should my business do now?
The news that energy bills will not be spiralling out of control in the immediate term should provide business owners and senior management teams with some level of comfort. However, it’s important implement procedures that look beyond the coming winter and help reduce costs through 2023 and beyond.
Implement energy saving measures
Reducing energy bills is easier said than done. Nevertheless, looking for efficiency savings now could make a dramatic difference over the coming months and years. Whether it’s adding motion sensors to office lights or upgrading insulation, savings can add up to thousands a year.
Similarly, embedding good practices amongst staff now can pay off over the course of a 12-month period. This could e be minimising the use of printers or turning off computers at the end of the day.
Look at renewable energy options
Investing in alternative energy sources ahead of the winter could help to ensure that electricity and gas bills don’t hit your organisation hard. Whether that’s installing a wind turbine at your factory or installing solar photovoltaic panels on top of your retail unit.
Stay ahead of the market with a business energy consultant
At a time of volatility it is important to ensure that you aren’t left behind the curve. Keeping in close contact with your business energy consultant may be the difference between securing a competitive deal or finding yourself in a crippling contract.
Whether you’re looking to reduce energy consumption, implement sustainable technologies or simply secure a competitive rate on the market, the team here at Consultiv Utilities are here for you. If you’re looking for more information on how the market is changing we’re only a phone call away. You can contact us on 0191 250 5557.
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