This month (December 2010) is one of the coldest on record for the United Kingdom. The night of December 19th saw Northern Ireland experience its coldest night since records began in the 1800′s and much of Scotland has had snow and freezing temperatures for longer than a month. Met office records highlight December 2010 as the 3rd coldest December since records began in 1659. This is the third consecutive winter we have had extremely cold and snowy conditions in the UK.
And as UK temperatures plummet, energy prices continue to soar. Npower became the latest of the ‘big six’ energy providers to hike its prices in early December – taking electricity and gas tariffs up by an average of 5 per cent in the new year – following similar increases from British Gas, Scottish Power, and Scottish and Southern Energy.
One factor common to both the fuel industry and the household gas and electricity sector is oil price. The global oil market has been rising consistently from the crisis-hit low of around $40 (£25) a barrel at the end of 2008, to $87 per barrel, pushing up both pump prices and wholesale gas costs. Investors are already speculating a return to $100 per barrel, and the 12-strong Opec producers’ cartel last weekend voted to keep in place production restrictions originally designed to put a floor under the cessionary price collapse, there is no let-up in pressure yet.
So, what can businesses do to take the bite out of rising energy prices?
Electricity is the most commonly used source of energy for most businesses and ensuring a continuous supply with the installation of UPS (uninterruptible power supply) and generators is a sound business move. However, there are other things you can do to reduce energy costs.
1) Alongside switching off lights and equipment not in use and fitting low-energy light bulbs, the starting point is to know exactly how much you use and where. Armed with this knowledge, you can begin to implement energy efficiency measures and technologies, such as the latest, energy efficient UPS equipment and energy management technology.
2) Negotiate hard with your energy supplier. Sign up to a longer-term deal to get a better price and make sure you get a fixed price. The more energy you consume, the harder you will be able to negotiate.
3) Carry out a baseline audit of room temperature, particularly in locations that use the highest amount of electricity such as server rooms and food storage areas. Rather than a blanket turn down of the thermostat throughout the building, you will save more energy by monitoring (through energy management) and addressing areas of concern, freezer doors left open, for example, can have a massive impact on energy consumption. As can doors to cooled areas (server rooms) that are left open.
Small changes can make a big difference where energy consumption is concerned.