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Saving Money or Saving Energy

06th Nov 2014

Be under no illusion, upgrading your business’ energy efficiency may not come cheap. Some of you out there will be weighing up if energy management is right for your business.

Since 2004 we have seen a steady increase in the average price of electricity and gas for non-domestic consumers.

Figure 1. Average Non-Domestic Electricity and Gas Price 2004 - 2013 (Source: Gov.uk)

This graph helps demonstrate how quickly energy prices rise. It stands to reason that as we continue our consumption of fossil fuels, the cost of energy will always rise. This could mean that trying to find the cheapest deal may be possible, but with constantly increasing prices are you really making a saving?

Is going for the cheapest deal better in the long term?

In a short term scenario, a cost focused strategy has the ability to provided nearly immediate benefits to a clients account. However, in terms of year on year benefits/savings, this cannot be predicted until your company’s renewal date. In terms of longevity, it is rarely rewarding because of increasing prices throughout the seasonal periods and the reliance on fossil fuels. This can be shown by figure 1.

So could an environmental focused strategy be better for your business?

Figure 2. Renewable Generation Breakdown (Source: gov.uk)

Currently renewable generation is increasing and there seems to be only growing support for all things renewable. This type of strategy does have its negatives. For instance, the initial cost of implementing such a strategy can be costly. Though over a long period of time these implementations would have saved your company, probably more than you spent on them and they will just keep on giving.

A strategy should reflect the goals of your brand. For example, larger companies would favour an environmental focused strategy because of commitment to a CSR policy (Corporate Social Responsibility). Smaller organisations seem to prefer a cost focused strategy, due to lack of resources to implement any environmental measures.

The advice we would give is that your strategy should work alongside your corporate aims and objectives, this way your strategy will be at maximum effectiveness. Though if you are unsure of what strategy would best suit your company or you want to discuss potential strategies then please contact us on 01354 606848 or fill out our contact form.

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