The energy market has been experiencing a lot of volatility in recent months, with prices soaring to record highs last year. Although throughout 2023 prices have begun to settle it has still placed a significant burden on businesses, many of which are struggling to cope with the increased costs. As the situation continues to evolve, businesses are being urged to take steps to manage their energy consumption and mitigate the impact of rising prices.
Factors Contributing to Energy Market Volatility
Several factors have contributed to the current energy market volatility, including:
- The ongoing war in Ukraine: The war has disrupted global energy supplies, pushing up prices for oil, gas, and other commodities.
- Supply chain disruptions: The COVID-19 pandemic has caused widespread supply chain disruptions, making it more difficult to transport energy resources.
- Increased demand: As economies around the world reopen, energy demand is increasing, putting further pressure on prices.
Impact on Businesses
The rise in energy prices has had a significant impact on businesses of all sizes. Many businesses are seeing their energy bills double or even triple, which is putting a strain on their budgets and forcing them to make difficult decisions. Some businesses have been forced to cut back on production or even close their doors altogether.
Strategies for Managing Energy Costs
In the face of rising energy costs, businesses are looking for ways to reduce their consumption and save money. Some of the strategies that businesses are implementing include:
- Switching to energy-efficient lighting and appliances: This can help to reduce energy consumption by up to 50%.
- Implementing energy-saving practices: This can include turning off lights and equipment when not in use, adjusting thermostats, and making sure that buildings are properly insulated.
- Investing in renewable energy: This can help to reduce reliance on the grid and further lower energy costs.
The energy market is likely to remain volatile for some time to come. Businesses that take steps to manage their energy consumption and mitigate the impact of rising prices will be better positioned to weather the storm.
In addition to the strategies mentioned above, businesses can also consider the following tips:
- Shop around for the best energy rates: Contact different energy providers to compare rates and find the best deal.
- Negotiate with your current energy provider: If you are a large energy user, you may be able to negotiate a better rate with your current provider.
- Take advantage of government incentives: There are a number of government incentives available to businesses that invest in energy efficiency and renewable energy.
By taking these steps, businesses can reduce their energy costs and improve their bottom line.
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