Welcome to our Weekly Newsletter 14th October

Winter can bring additional pressure on business energy budgets, particularly for organisations operating large premises, warehouses, manufacturing facilities, offices or customer-facing buildings.

While some seasonal increases in consumption are unavoidable, taking time to review your energy arrangements now can help you prepare for the months ahead.

Here are five areas worth considering before winter demand increases.

1. Review Your Winter Energy Requirements

Your business may use energy differently during the winter compared with the summer months.

Heating, lighting and longer periods of darkness can all contribute to increased electricity and gas consumption. Businesses operating shifts or extended opening hours may also experience different demand patterns as the seasons change.

Consider whether your current energy forecasts reflect your expected winter requirements.

Understanding potential changes in consumption can help you plan your expenditure and identify areas where further investigation may be worthwhile.

2. Make Sure Your Heating Systems Are Working Efficiently

Heating can represent a significant proportion of a business's energy use during colder weather.

Before temperatures fall further, consider whether your heating systems have been serviced, whether controls are operating correctly and whether heating schedules reflect actual occupancy.

Simple measures, such as avoiding unnecessary heating outside working hours and reviewing temperature settings, may help reduce avoidable consumption without compromising staff comfort or operational requirements.

3. Check Your Energy Contract Renewal Date

Winter is also a useful reminder to check when your current electricity and gas contracts expire.

If your contract is due for renewal within the next 12 months, starting the review process early gives you more time to understand your options and assess how different procurement approaches align with your business requirements.

Waiting until a renewal deadline is approaching can limit the time available to review contracts, compare arrangements and plan ahead.

A little preparation now can help you approach your next energy contract with greater confidence.

4. Understand What Is Driving Your Energy Costs

Your energy bill is influenced by more than the headline unit rate.

Contract terms, standing charges, consumption levels and the wider costs associated with energy supply can all affect your overall expenditure.

If your costs have increased, it is worth understanding which factors are contributing to the change before deciding what action to take.

A clearer picture of your current arrangements can help you identify the questions to ask when reviewing your next contract.

5. Plan Ahead Rather Than Reacting to the Market

Wholesale energy prices can change in response to a range of factors, including weather conditions, supply and demand, geopolitical developments and wider market uncertainty.

Trying to predict every market movement is difficult. However, businesses can take a more structured approach by reviewing their renewal dates, understanding their consumption requirements and considering their appetite for price risk.

The right approach will depend on your organisation's priorities, budget and operational needs. There is no single procurement strategy that is suitable for every business.