It’s reassuring to hear the news that the government will renew its support to sectors hit by the energy crisis, however we all need to realise that this handout isn’t sustainable in the long run.
The scheme isn’t attached to carbon emission and energy reduction commitments, which means that it’s simply putting the fire out for a short while and kicking the emissions bucket down the road once again.. It’s not viable to rely on government handouts to manage businesses’ energy costs, so now is the time for industries to make an effort in not only reducing their energy wastage, but reduce baseline energy consumption.
Businesses that aim to further protect themselves from soaring energy bills need to tap into their full potential by unlocking flexibility and reducing their energy costs including the non-commodity charges. In 2020, commodities represented only 40% of any bill, with non-commodity costs such as delivering electricity, balancing the grid and all network costs making up more than half of heavy industrial user’s bills, so there’s plenty of opportunity to recover a bigger portion of energy bills.
The best kilowatt is not the one the government helps you pay for, but the one that you don’t use or learn to use at a time that’s cheaper. That is why the growth of demand side response programmes is more vital than ever, not only to help keep businesses’ costs down but to help the UK break out of its dependence on Russian gas.
Stability in the wholesale market will not be seen for at least 2-3 years, so organisations will remain at the mercy of elements outside of their control, even with additional compensation schemes. The only way for companies to truly take full control of their energy costs, reduce CO2 and earn significant additional revenue is through Demand Side Response networks.
