As energy prices have increased, business owners have had to make tough decisions regarding their energy use. For some businesses, this has meant seeking out more efficient ways to use energy, while others have had to scale back their operations. High energy prices have affected businesses of all types, but especially those that are energy intensive users.
Energy intensive users have been hit hard by the rising cost of energy. This is because they use a lot of energy to run their businesses, and the high prices have made it difficult for them to stay afloat. In this blog post, we'll look at how high energy prices have affected energy intensive users, and what they can do to reduce their costs.
How high energy prices have affected different sectors
The effects of rising business energy prices have led to stark changes in all business sectors. Companies within the manufacturing, construction and other trade and energy intensive industries are all struggling to combat the increasing costs of electricity and fuel that has come as a result of higher energy prices.
These businesses are now faced with difficult decisions regarding operational costs, and the decision between efficiency measures or operating constraints is becoming increasingly more difficult. This underscores how businesses and consumers alike are losing out from the increasing costs of business energy that span from production input costs, product pricing, and sustainability investments. As business energy prices continue to rise, companies will need adequate strategies to ensure their long-term financial health.
High energy prices are also influencing the competitiveness of British manufacturing and constriction businesses. This is why the government announced extra support for Energy and Trade Intensive Industries (ETIIs). This is to allow them to remain competitive in other markets such as the EU. However, many believe the low level of support for these industries is going to make the UK much less attractive for investors in these industries.
The impact of high energy prices on the economy
The rise in energy prices can have far-reaching economic impacts, both in the short-term and long-term. Higher energy prices can directly lead to increases in production costs for manufacturers, causing ripple effects up and down the value chain.
Consumers may find themselves with less disposable income if their home heating or electricity bills increase, cutting back on discretionary spending and further depressing economic activity. In addition, businesses may be forced to raise their product prices to cover higher energy costs, resulting in reduced consumer demand due to higher prices that bear no relation to quality difference or other tangible value. Finally, this will affect government revenues if taxes on these products need to be increased; cuts in public spending could impede economic growth even further as confidence falls away from the markets.
How to save money on your business energy bill
It's no surprise that the rising cost of energy can be a significant drain on any business’s bottom line. There are several strategies to help manage and even reduce energy bills. Firstly, invest in high-efficiency equipment and automate control systems for peak performance. At Resolve Net Zero we have a number of solutions that can help you when it comes to lowering consumption for your energy bills. See more here.
Also, consider securing a competitive rate from energy providers. At Resolve, we have a number of energy experts that will negotiate the best deal for you and your business at the best time. To arrange a call today to see how we could lower your energy bills, get in touch here.
Furthermore, get input from your staff about reducing energy usage in the workplace, as even small changes like unplugging devices when not in use can add up to big savings. Thinking outside the box while employing smart money-saving ideas can help businesses to optimize their budget, leaving more funds available for other essential operations.
What the future holds for energy prices
The future of energy prices is uncertain, as the global landscape continues to change. With new technologies emerging and the demand for renewable and sustainable sources of energy increasing, the potential for a spike in energy expenses cannot be ruled out. Additionally, geopolitical events could have an inadvertent effect on the forecasted prices. Nevertheless, for now unfortunately some price hikes are expected within the wider wholesale energy market throughout 2023.
This means some smart investments are necessary for businesses and individuals to remain afloat when energy costs fluctuate. Further investment may even help protect them from the negative effects of predicted drastic price hikes.
Energy prices have been on the rise for the past few years and it doesn't seem like they're slowing down anytime soon. This has had a major impact on businesses, especially those that are highly energy-intensive. However, there are ways to mitigate these costs by doing things like reducing your business's energy consumption or shopping around for a better energy deal. It's also important to stay up-to-date on what's happening in the world of energy so that you can make informed decisions about how to run your business. With all of this in mind, let us know if you need help managing your business's energy costs. We would be more than happy to assist you.
If you're looking to save money on your energy bills then why not get in touch today? The relationships Resolve Energy has developed with over 24 of the UK’s biggest business energy suppliers allows our energy experts to source the best business energy rates available for your company right when you need them. Request a free quote today and start saving money on your energy.
