Why Are Energy Prices at Record Levels?

0
662
why are energy prices at record levels

Currently, energy prices are at record levels and continue to reach new records weekly. Energy prices are becoming painfully high, and no signs show these will decrease.

We explore the reasons for the increase in energy prices and share a few tips on how you can reduce your business cost on energy bill whether it is big or small business.

Why are energy prices at record levels?

why are energy prices at record levels

Energy prices are at record levels due to these key drivers:

  • 2020/2021, the UK has an exceptionally cold Winter. The UK used all of its natural gas reserves and is reliant on importing gas.
  • The continued invasion of Ukraine from Russia has resulted in sanctions against Russia, and they’re the biggest natural gas exporter in the world.
  • Russia cut natural gas through the Nord Stream 1 pipeline in July 2022. Nord Stream is now running less than 20% of its original capacity, causing prices to skyrocket.

How can my business combat these record highs?

To combat the skyrocketing energy prices, your business can implement the following:

Use energy efficiency devices

Use energy efficiency devices like smart timer to switch off lights, computers and printers in your office. It’s incredible the amount of energy these devices use whilst on standby.

Use energy efficiency devicesYou’re office is only open for 9-10 hours a day maximum, so reduce your energy consumption by installing timers that switch off the power on these high usage devices.

This will ultimately reduce your overall consumption, and reduce your energy bill annually.

Install a smart meter

Make sure you install a smart meter. Your business will immediately benefit from this, as you will pay for exactly what you use. No billing based on estimated usage, only actual use.

You can also use it to monitor your premises energy usage and spot any issues in usage. This include huge spikes of energy usage, and implement a fix immediately, rather than running up your energy bill further.

Compare business energy prices

Compare business energy pricesIf you compare business energy prices, you’ll be able to compare the latest prices i the market and see if they beat your current fixed prices or if you’re on a variable tariff if they beat those.

Renewable energy

By using solar panels you can make considerable savings in the long term as installing solar panels will repay themselves after 4-5 years. They tend to have a lifespan of 20+ years, and are no to low cost to maintain.

The initial investment is a bit of an expense, but after the first few years it will repay itself and more, reducing your overall energy bill considerably.

Final thoughts

We hope this guide was useful and helped to understand the current energy price uptick. Each of these energy tips will slowly reduce your energy consumption and will help you to manage your overall consumption and significantly reduce your energy bill.

LEAVE A REPLY

Please enter your comment!
Please enter your name here