In the current climate, many businesses are looking to reduce costs where they can, navigate their way around new legislation and improve their overall efficiency.
When energy isn’t your speciality, it can be incredibly difficult to stay on top of market and industry changes, that’s where we can help.
We have put together an overview of the 7 main utility challenges currently affecting your business and the solutions available to combat them.
- Rising commodity charges
Due to the volatility of the energy market and constant price fluctuations, it can sometimes seem like energy costs are spiralling out of control. For energy-intensive businesses, the Government provides a range of exemption relief opportunities to help you remain competitive internationally. Make sure you’re maximising the full benefit of the exemptions available to help keep your energy costs down.
- Mitigating the impact of the Targeted Charging Review (TCR)
Ofgem have confirmed that the way network costs are passed through to customers is changing. This move to fixed residual charges, along with the removal of Triad avoidance benefits, will come into force in 2022 – make sure you keep on top of these changes to ensure you understand the impact. Businesses looking to safeguard themselves from these charges can book in a review of their Agreed Supply Capacity (ASC) now to ensure it is set correctly.
- 75% of bills have incurred overcharges in the last six years
The chances are, you have been overcharged for your energy in the past six years. It’s easy to miss given the time it takes to check each bill and the in-depth understanding required to get it right. If you haven’t done already, you can enlist the services of an energy consultant to identify billing errors and recover lost money – during these uncertain times this could be a welcome cash injection to your business.
- Is your utility buying strategy fit for purpose?
Often overlooked as it requires in-depth understanding, your buying strategy is critical or you could end up paying additional or undisclosed broker fees, high supplier margins or get limited product functionality. Do your research, get quotes and understand your energy usage to ensure you have the right strategy in place.
- Keeping on track with your compliance requirements
Do you have a structured approach to meeting your ongoing compliance obligations? Energy legislation doesn’t need to just be a ‘box ticking exercise’; maximise the reports by shouting about your sustainability to your customers and stakeholders. Many energy intensive businesses will need to comply with both SECR and ESOS (phase 3) regulations – so make sure you stay on top of the deadlines to avoid fines and lost business contracts due to failed compliance.
- Meet net zero emissions by 2050
Unfortunately, there is no ‘one-size fits all’ approach to this. Every business operates differently and will need to play its part for us to achieve net zero by 2050. This may feel like a long time away, but most businesses will face a long journey towards carbon neutrality, so it’s best to get started as soon as possible. If you don’t know where to start, an energy consultant can provide support, help you set targets and look at implementing your carbon reduction strategy.
- Improving energy efficiency
Improving your energy efficiency is still key, set up Profile Alerts or ‘energy alarms’ to monitor and target your energy and water consumption, and get alerts to notify you when you are exceeding your normal consumption.
By working with an energy consultant, businesses can benefit from the expertise of those who deal with energy compliance, procurement, and monitoring on a daily basis, taking the burden off your in-house team. At E&CM we have products in place to help with all the scenarios above. If you would like to know more information about how we can help you maximise opportunities, reduce costs, monitor your consumption and help you comply with legislation then please get in touch:
T: 0330 166 4444