Businesses of any size can keep their energy spend in check simply by using less energy.

Identifying energy efficiency opportunities and then implementing measures to address them will reduce the amount of gas and electricity used.

Encouraging an energy efficiency culture at your company is one way of doing this, so that staff are conscious of the need to turn off computers and equipment when idle and lower consumption that way.

Physical measures such as the installation of LED lighting or more efficient heating or cooling system are other steps that can be taken.

Not one solution will fit all, however. Some businesses may operate on a single site, others across multiple sites, whilst working hours may differ.

Businesses that operate largely during daylight hours and have a lot of natural light coming into the building, for example, will spend less on lighting than one that largely operates at night.

Proactive smart energy procurement

But one thing that all businesses should have in common is a desire to get the best business energy deal possible.

In the early days of the energy management industry, businesses tended to wait until they had a month left on their present deal before contacting energy suppliers and then renewing.

But energy procurement has moved on and it is smart business nowadays to be much more proactive in the process.

Whilst no business owner or energy manager in charge of the energy procurement process can be expected to plot the future course of energy prices – an impossible task given there are so many factors affecting prices – they can arm themselves with enough market information to make as informed a choice as possible.

Timing is key

Knowing when to put pen to paper and whether to fix the energy price or remain flexible are key to smart energy procurement and a successful outcome.

At times such as these, where there is a lot of upward volatility, it is more important than ever to make the right decision.

“It is all about knowing when to procure, what type of procurement and then getting on and doing it,” said Energy Management consultant Malcolm Barrington.

“We have signed up people a year-and-a-half ahead of when their current energy deal expires because the markets are in such a position at that time it is of benefit to do so.”

If you would like to draw on our vast experience, to help you in the energy procurement process, please get in touch on 01225-867722.

What the first half of the year has reminded us of is that there are multiple variables affecting business energy prices, some predictable and others not.

Having as much insight as possible into the way different factors may lead to bullish or bearish runs in the business energy price markets is essential to good energy procurement, which is why we produce a free to download energy Market Intelligence monthly bulletin.

Available in PDF format, Market Intelligence helpfully breaks down the trends in the Gas, Oil and Electricity markets, whist giving updates on significant changes in areas such as legislation and compliance and information about Third-Party Costs (TPCs), enabling energy managers and business owners to make informed decisions when it comes to signing energy contracts with suppliers.

Whilst the business energy markets have always had the capacity to be volatile in nature, from January to June 2021 prices have arguably been influenced by a greater array of factors than ever before.

Who’d have thought that a giant cargo ship would have run aground in the Suez Canal and brought the world’s busiest trade route to a standstill for over a week, for example?

Politics has played a part too, with President Biden being sworn in and making some statement policies over carbon net-zero, whilst Brexit has been put into action over here in the UK.

Factor in decisions from OPEC+ countries over levels of oil production, cyberattacks on US oil pipelines, the maintenance season in the North Sea, the ups and downs of the British weather as well as the ever-changing picture over natural gas storage levels, and it is not hard to see why business energy prices can fluctuate so wildly.

If you feel you would like to be more informed about what shapes the business energy markets, just fill in the short form at the bottom of our home page and we will notify you as soon as the latest report is released.