After a tough year with energy bills, many businesses are hoping for some relief when it comes to paying for energy next year. This is unlikely as wholesale energy prices are set to rise by up to 50% over the next year.
Why are business energy bills getting so expensive?
Energy bills are currently one of the biggest issues for many businesses. This is because the global wholesale gas market continues to rise, therefore so are people’s energy bills. The main reason for this issues in the gas market over the past year, is mainly due to the EU struggling as Russia has stopped most LNG exports after their war with Ukraine.
This is only set to get worse going into next year.
Wholesale energy prices going into 2023
Gas
There has been a recent global demand for LNG with major markets such as the EU and UK procuring large volumes.
Due to the lack of Russian gas across the EU, the content could see their supplies drained, especially if temperatures drop further.
Global demand for gas is also expected to be much higher this winter and going into 2023. The wholesale trends also suggest that prices are going to remain high for at least another couple of years. In the UK the primary driver of higher gas prices currently is our lack of supply security.
Electricity
Volatility in the electricity market mainly stems from the gas market. This is because gas and electricity prices are currently tied to one another. So far it has been predicted that electricity prices for winter are more uncertain and are likely to be more expensive from a consumer point of view.
How to reduce business energy bills
With this spike in energy prices, there is not much your business is going to be able to do in terms of reducing how much you are going to have to pay for energy, as we mentioned above prices are expected to continue to rise for a couple of years.
In order to reduce your energy bills you will have to reduce how much energy your business consumes. There is a number of ways you can do this. For example, you could introduce energy-efficient measures into your business. This could start off by ensuring electrical equipment is switched off before leaving the premises or ensuring employees are being a bit more consensus of their energy usage.
To make a bigger impact on your energy bills you will need to measure and monitor your energy usage and then implement energy-efficient technology to remove your company’s reliance on expensive fuels such as gas.
Right now, measuring your business’s energy usage and finding the most cost effective way to reduce this is probably something your business doesn’t have the time or resources for. Luckily at Resolve Net Zero, we offer a range of services to reduce your reliance on gas and electricity.
Carbon management
One way you can reduce energy usage is with a carbon reduction plan. A customized plan for your business will reduce energy consumption and therefore costs. This will also help your business transition into renewable generation, which the economy is moving towards.
We will track your scope 1,2 and 3 emissions. From here we will be able to identify the areas in which your business can reduce energy usage and make cost savings.
Not only does a carbon management plan reduce how much you must pay for energy but also allows your business to become closer to becoming net zero. The government wants all businesses to be Net Zero by 2030, by starting now you have more time to plan.
Voltage optimisation
Your business could also reduce electricity consumption through voltage Optimisation. Most electrical equipment in the UK will work effectively at 220 Volts. Electricity is supplied up to 253Volts.
A Voltage Optimiser lowers the voltage that is supplied to your electrical equipment to the optimum level needed for them to work effectively. The energy that is not needed is then bounced back to the national grid.
By using a voltage optimiser your business could allow you to start seeing savings of up to 19% on your energy bills straight away. A voltage optimiser also has a short return on investment, so not only will you make immediate savings, but you will also make your money back in 2 – 4 years.
Find out more about voltage Optimisation here.
Solar panels
Finally, another way to reduce consumption and energy efficiency in your business could be solar panels. By using this infrastructure your building could be generating its own power and saving money by not having to pay for electricity from the grid.
Solar panels work by converting energy from the sun into power. Not only does this save your business money but also provides you with energy independence. You will not have to depend solely on volatile energy from the grid.
With solar panels, you will also earn your money back from your savings in your energy bills.
Find out more about how solar panels could benefit your business here.
If you're ready to improve your energy efficiency whilst driving down energy bills then why not get in touch? From voltage optimisation to solar, Resolve Net Zero have developed relationships with the UK's best sustainability partners so our net zero experts can source the best carbon reduction solutions available to your company. Request a free quote now and start reducing your carbon footprint and energy bills today.
