An alarming number of big businesses have no energy strategy
A report by PwC this spring has claimed that over half of big UK industrial firms do not have an energy strategy – NGP looks at why that’s a mistake, and what can be done to easily rectify the situation.
According to the Harvard Business Review, simply treating energy as a cost that needs to be managed is a ‘strategic mistake that overlooks enormous opportunities to reduce risk, improve resilience, and create new value.’
Yet this is exactly what many businesses, of all sizes, do. The PwC report says that only 45 per cent of large firms follow a documented energy strategy. They treat energy as a necessary evil and simply pay their bills each month, without questioning the costs or their relationship with the energy companies.
You wouldn’t find this dynamic existing between a business and any of its other suppliers, who are rightly subjected to constant scrutiny based on cost and performance.
Working with a specialist such as NGP to devise an energy strategy for your business can enable your company to:
Everyone likes to be in control, especially those of us who run businesses, so why leave your energy use and strategy to chance? Working with energy industry specialists can help you develop an understanding of energy that will empower you to take your business forward confidently.
Easy one, this: the outlay involved with developing a sound energy strategy is dwarfed by the long-term benefits that it can bring. Northern Gas and Power has developed a hugely successful reputation based on the savings and operational improvements we have helped our customers to achieve. We file this one under ‘no-brainer’.
Track energy use at all levels
Information is key and an energy strategy, combined with the right hardware and software tools, can enable a business to understand fully how and where it is using energy. Only by understanding what’s going wrong can you hope to put it right.
Make the move to renewable energy and other advanced energy tech
The cost of renewable energy has fallen dramatically over the last decade, and continues to do so. Meanwhile the cost – both to your finances and to society generally – of fossil fuels is going up all the time. Firms that aren’t aggressively incorporating renewables and other new energy technologies into their overall energy strategies are overlooking important benefits and exposing themselves to an array of risks.
Engage with key stakeholders
Bigger companies can use their influence by connecting with key stakeholders such as customers, communities, investors and employees to discuss the issue of energy use, climate change and related regulation.
Being pro-active in this way can help to improve the relationship a company has with each of these groups. Positioning a company at the forefront of issues such a regulation, the adoption of clean energy and energy education can help a company to stand out from the crowd in competitive marketplaces.
There really is nothing to lose. Call us today. Or, if you’re interested in saving money but don’t think your business is yet big enough for a dedicated energy strategy, our new SME channel can help.