Domestic and non-domestic energy customers have been battling soaring energy prices for nearly a year. On 3 February, UK energy regulator Ofgem “announced the new energy price cap for average gas and electricity bills… meaning that the average home will see dual-fuel bills rise above £1,900. There have been fresh calls for Government-level focus on energy efficiency and renewables to decrease the nation’s reliance on imported gas,” reported Edie.
British home energy prices are set to rise by 54 percent. “The regulator said that for customers paying by direct debit from their bank account, annual charges would increase by 693 pounds ($940), to £1,971. The big rise will affect about 22 million customers who currently buy energy under a price cap set by the regulator,” the New York Times reported.
Record domestic energy prices are reflective of the soaring prices troubling businesses across the UK. The food and beverage and fertiliser industries, for example, have struggled to meet product demands because of tight and expensive energy supplies. Power-hungry sectors such as steel, glass, and chemicals have battled soaring gas and electricity costs that have caused higher prices of goods. These are just a few examples of sectors and businesses who have faced challenges during the energy crisis.
In order to mitigate escalating energy costs (outside of the procurement of the right contract type at the right time), businesses will need to monitor and manage their energy consumption wisely with carefully planned and executed energy management strategies.
Energy management is a process by which an organisation can effectively manage how much energy they use and how to control, monitor, and conserve as much energy as possible while still producing enough to meet their demands.
Efficiency strategies driven by energy management technology
Energy management hardware and software put energy data into businesses’ hands, providing them with the insights they need to act swiftly and productively towards reducing consumption, cost, and carbon. Solutions such as ClearVUE.Zero provide businesses with unprecedented levels of energy data in real time. Instantly, they can spot anomalies and inefficient trends in their energy profile, allowing them to act quickly and implement cost and energy saving measures. This helps businesses net immediate dividends on their bottom line and optimise production efficiency.
Businesses using ClearVUE.Zero can now target, monitor, and mitigate energy waste for both gas and electricity running through their sites, giving them total control and insights into their global energy consumption profile.
Recently, we added the Gas Analysis module to ClearVUE.Zero. The module enables businesses to drill down deep into their business gas consumption through high resolution data, consumption reports of their business gas costs and usage, immediate understanding of their carbon footprint – all done in seconds. In a time of great energy market volatility, it is advantageous for companies to have real-time insights into their energy consumption data. The system provides data at 15-minute intervals minimum for business’ energy (kWh), carbon emissions, costs, business gas volume, and business gas calorific value.
ClearVUE.Business’s 5-stage energy management and net zero consultancy service
In addition to creating world-class proprietary energy management solutions, ClearVUE provides a flexible, on-demand energy management and consultancy service that guides businesses every step of the way towards a more efficient and decarbonised energy future.
Energy and carbon benchmarking and management planning
As your part-time carbon and energy manager, we undertake energy audits, prepare energy short-, medium-, and long-term energy and carbon reduction plans, run in-depth feasibility studies, and provide assistance with energy budgeting. We can also forecast expected consumptions, identify peaks in energy consumption to avoid penalty charges and ensure reduction targets are on course to be achieved.
Carbon reduction strategy
When benchmarking and planning are complete, we help your business implement this plan so you can start reducing emissions and consumption. This can be in the form of operational and behavioural changes, as well as plant and equipment changes.
We offer project management capabilities on all energy-related installation projects, from feasibility reports and functional specifications to managing tender processes. We also advise on large-scale solutions to help you achieve greater returns.
Renewable installations
Improving site fabrics and processes can help reduce energy waste, cut power costs, and lower carbon output.
This includes:
- Solar (thermal and PV)
- Biomass (heating and CHP)
- Anaerobic digestion
- Air and ground source heat pumps
- Wind solutions.
Additionally, we provide project assistance for:
- Building fabrics (lighting upgrades and control solutions, HVAC installation and maintenance, infrastructure upgrades, utility supply upgrades and installation)
- Process-related upgrades and maintenance, including air compression, motor hydraulics, and steam system improvements; refrigeration, cooling, and chilling solutions; power factor correction and voltage optimisation).
We advise on all energy-related installation projects to ensure a smooth and seamless integration.
Smart energy procurement and management
Cutting energy costs requires careful usage and management of a business’ energy portfolio. Businesses can get a good start on reducing energy costs by procuring energy contracts that best suit their situation and needs.
If you are needing to procure sooner, opting for a long-term fixed contract will help reduce prices. This method of power purchasing is known as “cost averaging”.
“If you take a three- or five-year deal,” says Latif Faiyaz, Head of Flexible Purchasing at Northern Gas and Power, “the average unit rate you’ll pay will be significantly lower than that of a one-year deal.”
Businesses right now, however, can reduce their energy bills through energy management and monitoring.
“Businesses have the opportunity to identify where their energy is being consumed with advanced energy monitoring systems,” says Latif Faiyaz. “These can spot inefficiencies in seconds which businesses can address immediately, making significant savings in the long run.”
The hardware and software technology of an energy management system (EMS) solution allows businesses to visually see through data-rich and easy-to-use graphs and reports exactly how much energy their business is using and losing.
One of the easiest ways to reduce energy cost is to optimise the way in which it’s already used. Businesses can become more efficient by reducing energy consumption – switching off lights and charging points, PCs and equipment, or using energy-intensive machinery only when required.
Compliance with carbon-related guidelines and regulations
Cutting emissions reduces energy bills, improves cash flow, increases profitability and competitiveness, improves green credentials, and reduces exposure to future energy price rises. UK businesses are compelled to report sustainability through various reporting procedures and guidelines.
With energy management systems and plans in place, businesses are in a better position to monitor and report on their scope 1 and 2 emissions.
Take control of your business energy today
If you have any further questions about business energy contracts, business energy management, or energy management software solutions, give us a call on +44 (0)3 300 300 200.
