What you can do about the relentless rise in energy prices

As you probably already know, the cost of electricity for UK business users has more than doubled in the past ten years. If the market indicators are anything to go by, it looks like costs will continue to rise at the same pace. That’s why, if there was ever a time to plan for your future – it’s now.

Investing in energy-efficient technology

For some organisations, investing in energy-efficient technology or creating an energy efficiency plan isn’t worth the upfront cost. However, we’ve seen organisations save annual energy costs between 30-70% just by making some small adjustments to their current way of working.

The question you should be asking yourself is; At a financial level, how is the relentless rise in the cost of energy going to affect my cost of operations and what can I do about it now? It’s pre-emptive financing rather than reactive.

You don’t need to invest heavily upfront

Yes, you should be looking at sourcing and purchasing the right energy-efficient equipment for your organisation. Yes, you will see long-term benefits. But you no longer have to invest heavily upfront. Hire purchase, lease and energy service agreements offer you flexible ways to pay for this investment.

We know, not all businesses are comfortable with the thought of financing, but these days it’s no different than going to the bank and asking for a loan. In fact, financing – from a business and energy-saving perspective, will give you far more leeway to adapt, upgrade and grow due to the flexible ways you can pay for this investment.

Gone at the complex payment terms, reams of small print and being locked in with one equipment supplier. With the right partner, you can have a flexible, bespoke funding solution.

Why this is so important

Aside from the cost, the UK implemented something called the Energy Savings Opportunity Scheme (ESOS) Regulations in 2014. ESOS created a legal requirement for larger businesses in the UK to undertake a full audit of their energy use and inform the Environment Agency by the end of 2016.

While this doesn’t apply to UK SME’s, organisations that do have to adhere must carry out the ESOS assessments every 4 years. Based on the saving success stories already, there is already talk about expanding energy reduction schemes to SMEs too. With the potential savings estimated at 18-25%, now is the time to be reviewing your energy policies.

Things you can do now

While you look at sourcing and investing in energy-efficient technologies and how you are going to finance that there are a few things you can do. First, compare energy suppliers costs. In such a competitive market, this is vital. Secondly, look for ways to optimise your current energy expenditure. Thirdly, research how you want to fund your energy efficiency plan moving forward.

We have set out the key criteria when it comes to what to look for when selecting a finance partner in our Management Guide to Financing Energy Efficiency Investments. Hopefully, it will help give you some ideas on where to get started.