What challenges do major energy users need to overcome to gain control of energy costs?
Historically, the main issue faced by major energy users was increasing wholesale costs of gas and electricity as a result of the soaring oil price. Despite oil prices falling in recent times, challenges still exist.
Business Energy bills and rapidly rising non-commodity charges make the outlook appear more complex than ever, so we’ve taken a look at the four elements you need to manage to take control of your costs.
Minimise commodity costs
38% of electricity and 72% of gas costs relate to wholesale prices, so reducing this element as much as possible will have a significant impact on your bills. We can help major energy users determine whether a fixed or flexible procurement strategy is best for their business and tailor a solution to their needs. Are you considering all your utilities when it comes to procurement? As of April 2017, businesses in England will be able to switch their water supplier. Scottish-based sites have been able to do this since 2008 and have found savings of up to 20% when switching.
Manage non-commodity costs
Utilitywise internal analysis has found that between 2010 and 2020 non-commodity costs (NCCs) will have risen by 127%. These are a variety of different costs that relate to numerous elements making up your overall charge, from levy taxes to transmission and delivery costs. Legislative changes can have a big impact on this part of your bill – P272 is affecting up to 100,000 businesses as part of a mandatory switch to half-hourly settlement of their bills. As a result, invoices will be more reflective of when these organisations are using energy so some could see their costs fall, whereas charges will rise for others. We can keep you up to date with industry changes, check your bills, and help you to produce budgets and better manage your consumption during peak times to lower these costly charges.
Control and reduce consumption
We have developed innovative solutions to help visualise and monitor your utilities usage, giving you power back over your consumption. We can provide major energy users with the tools to analyse energy data and control usage at the touch of a button. Savings of up to 20% can be identified simply by monitoring usage and many businesses can save 10% on their bills through simply low or no cost measures. Our software can be used to display energy use at your sites, helping to engage staff in energy saving initiatives. Our audits can highlight potential improvements to buildings, equipment and behaviour. Plus our Energy Solutions team can go one step further and work in partnership with you to implement energy saving projects, renewable technologies an on-site generation.
ESOS has been a focal point recently, but now the compliance deadline has passed businesses need to be looking into making the most of the energy saving opportunities the scheme offers.
Utilitywise can help you comply with an array of legislation, such as CCA, CRC, DECs and even Air Conditioning Inspections. Compliance can enable you to improve energy efficiency, tighten up internal processes and give your organisation something to shout about when it comes to Corporate Social Responsibility.
Take on your four challenges as one
The solution to effectively managing your energy and water challenges is to take them on with a single coherent plan.
Utilitywise can work in partnership with your business to devise a bespoke Strategic Utility Management Plan. The wealth of services we can provide as part of a tailored plan are detailed in four areas:
- Compliance and Accreditations
- Procurement and Tendering
- Controls and Reduction
- Monitoring and Reporting
We’ll design a plan to suit the needs of your business – it could cover all four areas or any combination. Your plan will minimise your business risks, control your utility consumption, manage your energy and water costs and lower your carbon footprint. To read our case study with Krispy Kreme and find out how their Strategic Utility Management Plan has benefitted the business click here.