Q&A on Rising Business Energy Costs with Colette Watts - Core

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21 April 2022

Q&A on Rising Business Energy Costs with Colette Watts

With business energy costs rising for everyone, we caught up with Core MD Colette Watts to find out what to expect from the markets and what organisations can do to limit the impact of higher bills.

What is the most important thing businesses should do if they’re worried about their energy costs?

This is a very difficult time for everyone with everyday costs rising and the energy markets responding to unprecedented global influences. We are all looking for certainty and whilst energy prices are likely to remain volatile, it will really help to know your options. If you are a Core customer, we will be keeping you updated with market intelligence to make sure you make informed buying decisions. If you don’t currently buy your energy through Core, our business energy advisors can help you understand the best way to proceed by looking at your current contract, usage and terms to make sure you are getting the best value for money.

Are there any quick wins to save money on energy?

Businesses can implement energy saving measures straight away, just as we are all doing at home by switching lights and heating off in unused rooms to help bring bills down. We find that our work with clients to improve energy efficiency through employee engagement forums is particularly impactful and involves people right across the business in finding ways to save energy. It’s good for business and it’s good for the planet too.

What else can businesses do to reduce the impact of high energy prices?

One way we’re really helping businesses is by making sure they are claiming any rebates they might be due. We do this in a number of ways. One way is by checking for billing errors. If a business’s usage has changed or if they are on the wrong tariff for example, we can claim back money on their behalf and this can run into thousands of pounds. We recently saved one client £26K after identifying an out of contract rates error. Another manufacturing client recently saved more than £40K after we identified an unclaimed Climate Change Levy rebate.

Is this a good time to invest in energy saving technologies?

When costs are going up, businesses are understandably reluctant to spend money on energy saving solutions. We carry out feasibility studies for businesses to demonstrate whether or not the investment is affordable and how long it will be before the money spent is recouped through savings. This helps enormously because it gives them the data they need to make an informed decision. Voltage optimisation, for example, has a relatively short payback time and can reduce consumption quite significantly. At times like this, when energy prices are high, the payback is even faster.

What about investing in renewable energy?

Again, there is often a reluctance to invest when budgets are tight. However, funding is available for some schemes and the big benefit is long term energy security. By generating your own energy, you are effectively protecting yourself from supply issues and volatility in the future. There is also an added commercial benefit in terms of being seen as a forward thinking business and part of a sustainable supply chain, which can make it easier to secure new contracts.

Can I still save money on my energy bills by switching supplier or forward purchasing

The landscape has definitely changed when it comes to tendering to the market for deals but that doesn’t mean to say that there are not opportunities to be had to get better value for money. As I said earlier, knowledge is key. This comes from reviewing what you currently pay for, whether the terms are right for you, when your contract is due for renewal and how your needs might change in the future. We can do this for any size of business or charitable organisation to make sure they are not paying more than they need. It also means we can help them plan for the future, giving them greater certainty as they move forward. Our pricing analysts are continually watching the energy markets to keep clients up to date so that they can make informed buying decisions. Now, more than ever, it is important not to leave anything to chance.

If you would like to talk to one of our business energy advisors call 01422 880 180.