With the market constantly moving, does your energy strategy still fit your purchasing requirements?
Since 2005, the cost of energy has risen by 70% and yet most organisations in the UK take no action when it comes to their utilities renewal.
The UK is faced with a changing landscape and businesses are now less in control of their utilities costs. As one of the most energy intensive sub-sectors, food and drink manufacturers should be working closely with their energy consultancy as setting and managing energy budgets accurately will be vital in protecting your expenditure.
How is the cost of energy rising?
With a changing market environment, it’s critical for any business energy buyer to assess your exposure, review your energy budgets and consider your approach to energy risk management.
Wholesale energy prices have the potential to be incredibly volatile. A good decision one day might turn out to be a mistake the next and by 2020, third party charges (non-commodity costs) could account for around 60% of your electricity bill, overtaking the cost of wholesale energy.
With non-commodity costs continuing to increase year-on-year and recent announcements such as the Capacity Market and the cost of Hinkley Point C heightening, there are concerns that the costs incurred by businesses will worsen their ability to remain competitive.
With an uncertain and likely volatile future for energy prices, getting an energy strategy that suits your food and drink manufacturing organisation will prove key over the coming years. So, how can we help you?