The cost of energy has risen sharply over the last few years – and the trend is set to continue.
Energy bills for commercial and industrial users are forecast to rise by 20-25% from 2011 to 2020.
What’s driving up fuel prices?
- Aging infrastructure
Energy companies are spending more money on repairing and renewing the UK’s outdated network.
- British power stations closing
Coal- and oil-fired power stations are closing earlier than expected to meet environmental targets, forcing the UK to rely on imported energy.
- International demand
Rising demand from developing countries like China is driving up international energy prices.
- Unstable political landscapes
Sourcing fossil fuels from volatile parts of the world, like the Middle East, can be affected by political events.
- Energy subsidies
Government-mandated subsidies for alternative energy sources like nuclear power and wind power are passed on to energy users.
Looking forward, the best way to protect your organisation against unexpected energy price rises is to reduce demand. This can be achieved through: