September 19th 2022
HOW THE ENERGY CRISIS MIGHT AFFECT YOUR BUSINESS
With more people being affected by the energy crisis, it is evident that businesses and individuals across the country are looking for money saving solutions. As a result of the energy crisis, many businesses have disbanded, including smaller UK energy suppliers.
In recent months, the market has experienced record breaking increases in the wholesale cost of gas and electricity - 54% in April 2022 alone. This drastic rise has left many business owners wondering how to minimise the effects on their bottom line.
What Caused the UK Energy Crisis?
The UK’s energy market is ultimately subject to the influence of national and international events. Over the past couple of years, there have been multiple major international events which have caused havoc in various markets – not least energy and gas.
COVID-19
The pandemic was one of the leading contributing factors to the energy crisis. The multiple lockdowns faced by the UK faced led to a decline in demand for energy. Now countries around the world including the UK are now fighting for gas and electricity supplies as society returns to normal. This increased demand has caused base load costs to increase by 283%.
The Russian Invasion of Ukraine
The Russian invasion of Ukraine has also threatened energy supplies and caused prices to increase. Although the UK does not get much of its gas and oil from Russia, Russia supplies 40% of Europe with gas. Due to this, more countries are competing for alternative energy sources, ultimately causing market prices to soar.
What are the Main Effects of the Energy Crisis on Business?
The effects of the energy crisis does not stop with an increase in the cost of heating homes and maintaining buildings. It has also led to strain being placed on many businesses –particularly those within the farming and operations industries.
For building owners and tenants, operating costs have rapidly increased too; buildings which are not energy efficient becoming harder to rent and let. This has not only caused day-to-day operational difficulties, it’s also led to letting agreements not being renewed.
How Can Businesses Battle the Energy Crisis?
Through merging asset level mediation and having clear insights into energy hotspots, you can help inform your disposal and retrofit strategy. By carrying out these changes, you will also be able to save carbon and avoid high energy costs.
Operational changes such as building optimisation will help you to reduce prices and plug loads, with smart meters helping to improve your energy usage. Through incorporating elements of a ‘smart building’ into your current setting, you can ensure that you are optimising your energy and gas usage.
Fix Your Business Energy
With more people returning to the office and the price of energy rapidly increasing, it is likely that the cost of your office bills will increase. However, here at Lily, our specialised energy experts are here to help you secure the most cost-efficient tariff on the market through using our Smart Technology.
To ensure that you are receiving the best energy deals, get in touch today!