After months of uncertainty, the Government revealed earlier this year an extension to its Energy Bill Relief Scheme which will see them offer support to UK businesses in rising to the challenge of increasing energy costs. Originally billed to end in April, the scheme will see discounts offered on energy bills to non-domestic customers such as businesses, SMEs, charities and public sector organisations.
While it’s encouraging to see the Government continue its support the business which make up the lifeblood of the UK economy, the scheme is set to offer a reduced amount of discount when compared to before. As a result the question still remains as to how organisations up and down the country will cope as their finances are continuously put under strain by the volatile energy market.
So, what’s next? It is a question which is at the forefront of sustainable tech expert Pilot Group’s agenda, who specialise in energy management systems which can deliver significant reductions for a business’ carbon and energy outputs.
The issues which destabilised the market originally and saw prices rocket remain and show little sign of abating in the coming months. The conflict in Ukraine which saw Europe and the rest of the world distance itself from a dependence on Russian oil is ongoing. This, against a backdrop of new rules requiring European countries to bring oil storage levels to 85 percent, and then 90 percent next year, will put further pressure on prices. Before this, wholesale oil prices were already on the rise with consumption increasing as the world emerged from lockdown. Volatility within the market was further compounded as Asia outbid Europe for a proportion of the Liquid Natural Gas supply. Major hurricanes caused havoc in the Gulf, and a lean amount of rainfall saw less hydro-generated energy produced, resulting in a greater onus being placed on oil and gas.
While the Government’s current aid is welcome, unpredictable events by their nature can have seismic impacts on the market which are long-lasting. The support too is likely not to increase any time soon as the Government can only do so much as it looks to support all stakeholders affected by the rise in energy costs. With UK businesses presented with the challenge of astronomically high energy prices, it is likely they will be required to implement measures themselves rather than wait for further intervention from the Government.
It is therefore up to businesses to proactively rise to the challenge of energy bills in a bid to avoid feeling the burden of seemingly ever-increasing energy tariffs. They can begin by looking beyond the relief scheme as a lifeline, and instead look at initiatives which will safeguard them throughout 2023 and beyond, whether new challenges emerge or not. A starting point can be to take an analytical approach and assess in fine detail their energy outputs so they can identify where realistic savings can be made.
By taking an analytical approach, companies can take control of their energy data and see where savings can be made. They can assess where changes across their operations are needed, allowing them to make clear-cut decisions which will benefit the company’s energy outputs going forward. Furthermore, effective energy management can reduce an organisation’s carbon emissions and improve facility performance, while also making them more robust against fluctuations in the energy market. Crucially though, it empowers them to plan ahead for expected energy costs which they can then factor into their yearly budgets.
Energy management and monitoring has never been so important for a business as it is now, and Pilot Group, with its easy-to-use Energy Management System, provides a powerful tool enabling companies to do so. The system helps organisations streamline their operations with the use of smart sensors and a self-learning algorithm which increases heating efficiency. This, combined with a user-friendly portal which can be accessed remotely, allows users to monitor multiple sites. Averaging a 40 percent reduction in consumption from gas and heating, the Energy Management System can be a powerful aid for businesses looking to cut costs wherever they can.
With the Government’s Energy Bill Relief scheme continuing but at a reduced rate, that doesn’t mean the UK’s businesses should remain static in tackling energy bills. Those which take control of their data and give themselves the power to make decisions on how they use and utilise energy will be those who really protect their futures.
For any organisation which is looking to plan ahead and take action which will lower its energy bills across the board, Pilot Group’s expertise can help highlight a clear path towards meeting the challenge of rising energy costs head on.
For more information visit: www.thepilotgroup.co.uk
Lee Morgan
Author, Lee Morgan, is Managing Director of Pilot Group Ltd’s Energy Management Division, who support organisations meet carbon reduction targets using technologies and lead the way in smart, safe, and sustainable infrastructure solutions.
