How businesses can navigate the UK's energy cost

Article posted

23rd Jan 2024

Read time

3-6 min read


Mollie Pinnington

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The UK's ambitious green transition, while vital for the planet, isn't without its hiccups. One such bump on the road for businesses is the rising cost of energy, fueled by the increased prominence of renewable sources and the phasing out of fossil fuels.

This trend is reflected in higher standing charges, a fixed daily fee on energy bills, putting a squeeze on business budgets.

But amidst the squeeze, opportunity abounds. By embracing energy efficiency as a core principle, businesses can not only mitigate the sting of higher standing charges but also carve a competitive edge in the green economy. This is where the expertise of an environmental consultant comes into play.


Why are standing charges rising?

The UK's energy grid requires significant ongoing investment, from maintaining ageing infrastructure to integrating new renewable energy sources. While these investments are crucial for long-term sustainability, they come at a short-term cost. To recoup these costs, energy suppliers are shifting more of the burden to consumers through higher standing charges.

For businesses, this translates to a fixed daily expense regardless of energy consumption. This can be particularly painful for energy-intensive industries, further eroding profit margins.


How energy efficiency can help

However, the answer doesn't lie in simply gritting teeth and weathering the storm. By implementing energy-efficient practices and technologies, businesses can significantly reduce their overall energy consumption, effectively lowering their effective standing charge. Here are some key areas to focus on:

·         Free solar: If your business is eligible did you know you could get completely free solar? You would just pay a lower monthly electricity bill every month. See if your business qualifies for this today.

  • Lighting upgrades: Switching to LED lights can reduce energy consumption by up to 90%.
  • HVAC optimisation: Smart thermostats and variable speed drives for motors can optimise heating and cooling, making significant efficiency gains.
  • Process optimisation: Analysing and improving industrial processes can often identify hidden energy waste opportunities.
  • Renewable energy adoption: Investing in heat pumps, VO or other on-site renewable energy sources can offset reliance on the grid and lower standing charges.


The environmental consultant advantage

Navigating the intricate world of energy efficiency can be daunting, especially for businesses without dedicated sustainability expertise. This is where an environmental consultant becomes an invaluable partner.

A qualified consultant can:

  • Conduct energy audits: Identify areas of energy waste and recommend optimal efficiency solutions.
  • Develop custom strategies: Tailor a comprehensive energy efficiency plan aligned with your business goals and budget.
  • Access financial incentives: Guide you through government grants and programs that can offset the cost of efficiency upgrades.
  • Navigate regulations: Ensure your energy practices comply with evolving environmental regulations.


The Bottom Line: Green Profits

Investing in energy efficiency is not just about cost-cutting; it's about building a resilient and sustainable future for your business. By reducing your environmental footprint, you attract environmentally conscious customers, investors, and talent. Additionally, you'll be prepared for the inevitable tightening of environmental regulations, putting you ahead of the curve.

The UK's green transition may necessitate higher standing charges in the short term, but for businesses, it's not a dead end. Embracing energy efficiency and partnering with an environmental consultant can turn this challenge into a transformative opportunity, boosting your bottom line and securing your position as a leader in the sustainable economy. Remember, sustainability isn't just good for the planet; it's good for business.

If you're ready to improve your energy efficiency whilst driving down energy bills then why not get in touch? With our carbon management plans we will give your business everything it needs to reduce consumption and maximise on savings. . Request a free quote now and start reducing your carbon footprint and energy bills today.