Ways to reduce the impact of rising business energy costs

UK wholesale energy prices hit record highs during 2022 following Russia’s invasion of Ukraine, bringing supply risk and price risk premium from a considerable reduction in Russian gas imports.

Despite this bullish sentiment, the COVID pandemic continued to suppress Asian industrial demand during the first half of 2023, and, as a result, increased imports of Liquified Natural Gas to European shores. Europe and the UK were able to secure extremely healthy levels of natural gas storage heading into Winter 2023, with the majority of facilities near to storage capacity.

Wholesale Electricity and Natural Gas prices have fallen as a result and are now at some of the lowest levels witnessed over the last 2 years.

Now is, therefore, an ideal time to review your energy supply Contract arrangements along with your consumption levels, existing service providers and consider ways to further reduce the impact of rising business energy costs.

Initially, the following measures will help to reduce and control energy usage:

• Provide your suppliers with meter readings every month as this will ensure you are only billed for actual consumption. Better still, employ the roll-out of automatic metering devices that allow you to remotely monitor energy consumption across your supply portfolio.
• Review areas where energy can be wasted, including heating, lighting, ventilation and air conditioning.
• Explore ways in which you may be able to generate your own energy, such as solar panel installations.
• Ensure you are buying energy at the best possible market price.
• Partner with a specialist energy broker with access to the full market and the ability to negotiate the best prices based on their extensive market knowledge and buying power.

The ability to negotiate the best deals and the fact that our clients enjoy a close working relationship with our dedicated energy team are the main reasons why people choose to partner with FPA Consulting. We always ensure you are offered specialist advice and that your energy supply arrangements are based on the needs of your business.

Our totally independent service provides unbiased advice with access to the wider energy market and the ability to analyse complex supplier offers based on your consumption profile, enabling us to provide you with the most cost-effective energy supply arrangements available.

Contact us on 01332 604321 or send an e-mail to enquiries@fpaconsulting.co.uk to discuss your requirements with one of our energy pricing specialists.