With a combination of geopolitical tensions, supply constraints, and global demand shifts driving volatility in energy markets, many UK firms are already feeling the effects in their energy bills.
Whilst short-term options to reduce costs might be limited, there may be an opportunity for businesses to make lasting savings by reviewing their energy strategy, say electrical experts, Fusion 360.
“Market-driven pricing means faster and sharper price increases, especially for businesses using high volumes of energy. The risk doesn’t show signs of diminishing, so a pivot to more efficient technologies and on-site renewable energy can provide the answer” says Joanne Skinner, Commercial Director of Fusion 360.
Many businesses are reporting higher unit costs for energy, particularly at contract renewal, with variable and flexible contracts most vulnerable.
As well as unit costs, standing charges are also increasing. Unlike consumers, UK businesses do not have the protection of a government energy price cap.
However, Fusion 360 point out that a birds-eye view of most commercial and industrial estates will already reveal the wide spread adoption of solar PV panels which now produce a significant proportion of the energy businesses require.
“Rising costs are a reality and instability appears the new norm. Adopting more efficient technology, such as low energy lighting and heating, and using on-site solar or wind energy helps firms limit the impact and lower costs” adds Joanne.
Prior to the recent conflict involving Iran, energy prices were already experiencing upward pressure due to the Ukraine conflict, global inflation, and wider market factors.
However, Fusion 360 believe businesses can take greater control of costs with proactive energy management and decision-making.
“Firms can make changes now which swiftly pay dividends. For example, the on-site charging of electric vehicles with solar PV is dramatically reducing businesses’ exposure to higher electricity costs, or worse, rising petrol, diesel and oil prices” states Joanne.
Established in 1997, Fusion 360 (formerly Fusion Electrics) specialise in the supply and installation of electrical, security, data and renewable energy infrastructure for businesses across the UK.
As energy prices become more volatile, Fusion 360 has increasingly been trusted to install renewable energy solutions for critical operations include supermarket distribution centres and major manufacturing operations.
The cost of solar PV (photovoltaic) panels is beginning to experience some upward pressure, with Fusion 360 advising businesses to act early to mitigate potential increases.
“Changes to tariffs and subsidies, alongside rising demand, are starting to influence the cost of renewable energy technology. By acting now, businesses can secure current pricing and begin reducing their reliance on rising energy costs sooner” concludes Joanne.
More can be found out about Fusion 360 at https://fusion360group.co.uk
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