There’s no escaping the fact that energy prices are at an all-time high and are set to get higher still.
Forward costs for the next few years are also looking high, so if you haven’t yet hedged or locked in future buying, then you’re likely to experience further hikes in your business energy costs.
And all of this, of course, has a negative impact on your bottom line.
So, while you can all have a good moan and grumble, what can you ACTUALLY do about these escalating costs?
The best thing you can do right now to level out the higher prices is to reduce consumption and to do that you need to implement a suite of energy efficiency measures.
Historically, businesses looking at such efficiencies have often held off because of long payback periods, but these paybacks should now be more attractive because of the higher costs of energy.
”The best thing you can do right now to level out the higher prices is to reduce consumption and to do that you need to implement a suite of energy efficiency measures.
It would be wise to revisit energy efficiency opportunities and get your operational energy needs reviewed. Inefficiencies that you have lived with for years, such as over-sized steam boilers, inefficient motors, outdated refrigeration, obsolete plant, power correction, lack of VSDs, T5 lighting etc, will all be worth re-addressing at this time.
Additionally, generating your own power on site – “behind the meter” – avoids the non-commodity costs and CCL that go with grid power and is amongst the cheapest form of power you can now source.
If you should explore these measures but still find that the paybacks are too long, or your cash is already committed to other projects, then you can look for zero capex options.
This means that a provider will install the necessary measures without an upfront cost to your business, but instead charging you over time for their use. This is what we can offer at Red Hawk Group for energy intensive manufacturers.
Need help getting started?
Red Hawk will conduct a free review of your energy usage and recommend efficiency measures and on-site generation solutions without any commitments from you.
At the end of the consultation period, we will provide you with our recommendations for both efficiency measures, procurement strategies and onsite generation projects with options for both capex and zero capex funding.
If this sounds appealing, then please contact billy@redhawkgroup.co.uk
