As the UK is set to become more reliant on energy exports and Ofgem warns of rising costs to consumers, it is important that businesses are aware of the potential impact this will have and what steps can be taken.
The BBC news yesterday has been filled with warning from Ofgem’s chief executive, Alistair Buchanan, who explains that Britain’s power production capacity is likely to lead to more energy imports and customers paying more. With a prediction of power station closures resulting in a 10% fall in capacity by April alone and demand for more gas supplies to fill the shortfall, Buchanan’s warning comes as older power stations close and renewable energy is still growing.
As a result, the latest predictions of energy requirements would indicate that in the short to medium term, there won’t be enough supply to meet demand.
This could have a massive impact on businesses, for example the government could introduce penalties for using energy in peak times to try and encourage energy use outside of peak usage hours to reduce demand and cost. Small businesses will equally be affected by changes in the marketplace; ultimately everyone will be paying more!
The simplest and most effective strategy to avoid increased energy bills is to reduce what you are using. The amount of energy put into a power station is double what a consumer takes out – so if you were to halve what the consumer takes out, the demand is drastically reduced!
Organisations need to actively look at solutions which provide greater visibility into their energy usage so educated decisions can be made to reduce cost. We believe there is more the government can be doing to encourage change and support those pioneering businesses, we have recently taken part in the DECC Consultation Period and put our suggestions forward to try and influence the Energy Bill to focus on energy efficiency – take a read and see what you think.