Energy costs in the UK have soared to unprecedented levels in recent months following rising natural gas prices, low wind production, high LNG demand in Asia, and Brexit- and COVID-19-induced inflation. Prices are expected to continue climbing throughout the winter months and into next year.
Read more about our outlook on energy prices here
Energy demand is rebounding across the world as economies reopen and people return to the office. However, supplies for that demand are not where they should be. Gas stockpiles in Europe are already at the lowest level in more than a decade for this time of year, pushing up the cost of producing electricity.
The pinch on energy supplies has put pressure on businesses to procure their energy wisely and to use it efficiently.
Northern Gas and Power, the parent company to ClearVUE Systems, is a business-to-business energy specialist working between the suppliers and customers who advise customers on the best approach they can take to planning their energy procurement. They also provide guidance and management services on how they can reduce their energy usage.
Long-term energy deals can mitigate energy price increases
Businesses can take measures right now to help them mitigate these rises, according to Northern Gas and Power’s Head of Energy Strategy, Latif Faiyaz. Latif says that there are measures businesses can take now to mitigate energy costs amidst this volatile season.
Read more on how businesses can mitigate rising energy prices here
“We are experiencing significant turbulence,” Faiyaz said. “A quick snapshot of the current situation demonstrates that wholesale prices for gas have surged 250 per cent since January, with a 70 per cent rise since August alone.
“Against this backdrop, though, there are clear measures businesses can put in place. Businesses can mitigate this price increase by looking at longer term deals. The average unit rate on a 3- or 5-year deal will be significantly lower than that of a 1-year deal.”
Energy monitoring systems improve businesses’ energy efficiencies
“Secondly,” Faiyaz continued, “businesses have the opportunity to identify where their energy is being consumed with advanced energy monitoring systems. These can spot inefficiencies in seconds which businesses can address immediately, making significant savings in the long run.”
ClearVUE. PRO is one such advanced energy monitoring system that helps businesses discover where and how they are wasting energy, inspiring changes to operations.
Alex Long is the Maintenance Manager at Klinger UK, a leading developer and manufacturer of sealing products for the oil and gas, petrochemical, utilities, pharmaceuticals, and chemical industries. With the help of ClearVUE. PRO, he was able to find how Klinger UK were using their power inefficiently. Reviewing the energy data compiled by ClearVUE with practical energy management methods allowed energy-intensive Klinger UK to reduce energy consumption and save on power costs.
“Being able to monitor and manage our energy usage is very powerful,” Long said. “While making decisions on how to run our machines, we see what we need to do to manage that better, and where there is hidden waste as well.
“Energy management is so powerful in helping manage costs and consumption. When you’ve got a good quality amount of data that you can refer to and you can analyse, it allows you to make a much more informed decision.”
Procure and manage your business energy wisely today
Businesses that would like to find out more about how we can support them to navigate the current situation, can contact Northern Gas and Power on +44 (0)3 300 300 800.
For enquiries on ClearVUE Systems, give us a call on +44 (0)3 300 300 200 or email us at firstname.lastname@example.org.