Welcome to our Weekly Newsletter 7th October

Is Your Business Energy Budget Still Accurate

Energy budgets are often based on previous consumption and expected costs. However, changes to working patterns, premises, staffing levels, equipment and opening hours can all affect the amount of energy a business uses.

As we approach the final months of the year, it can be useful to compare your original energy budget with actual consumption.

Consider reviewing:

• Actual energy consumption against your forecast
• Changes in electricity and gas usage
• Any significant changes in operating hours
• New equipment or machinery introduced during the year
• Changes to your premises or workspace
• Unexpected increases in energy costs

Identifying differences early can help businesses understand whether their current budget remains realistic.

Understand When Your Business Uses the Most Energy

Knowing how much energy your business uses is useful, but understanding when you use it can provide even greater insight.

Some businesses have relatively consistent consumption throughout the day, while others experience significant changes depending on operating hours, production schedules or equipment use.

Reviewing your consumption profile can help identify:

• Peak periods of electricity demand
• Times when buildings are occupied but energy use is unusually high
• Equipment operating outside normal working hours
• Significant differences between weekdays and weekends
• Seasonal changes in consumption

This information can be valuable when reviewing your procurement strategy and considering future contract requirements.

Are You Paying for Energy You Don't Need?

Reducing energy consumption does not always require major investment.

In many businesses, opportunities can be found by looking at how buildings, equipment and systems are operated on a day-to-day basis.

For example, consider whether:

• Equipment is left running outside working hours
• Lighting is operating in unoccupied areas
• Heating or cooling systems are running unnecessarily
• Office or operational areas are being used differently from when the current energy strategy was established
• Standby equipment could be switched off when not required

A regular review of energy usage can help highlight areas where operational changes may be worthwhile.

Don't Overlook Contract Structure

When reviewing an energy contract, it can be tempting to focus primarily on the unit rate.

However, the structure of the contract can be just as important.

Businesses should consider whether their current arrangement provides the level of price certainty and flexibility they require.

Depending on your circumstances, relevant considerations may include:

• Contract length
• Fixed or flexible purchasing arrangements
• Renewal dates
• Standing charges and other non-energy costs
• Consumption profile
• Budget requirements
• Appetite for market risk

There is no single procurement approach that suits every business. The most appropriate option will depend on individual circumstances and priorities.

Give Yourself More Time Before Renewal

If your energy contract expires within the next 12 months, it may be worth starting the review process now.

Leaving procurement decisions until the final few weeks can create unnecessary pressure and reduce the time available to assess different options.

Starting earlier gives you more opportunity to:

• Review your existing contract
• Analyse recent consumption
• Check your renewal date
• Understand your current costs
• Consider changes to your business
• Review available procurement strategies
• Monitor market conditions

You do not necessarily need to make an immediate decision. The first step can simply be understanding where you currently stand.