London-based energy and sustainability consultancy Advantage Utilities has warned of the impact that ongoing geopolitical events could have for businesses in the UK in their latest Energy Budget Optimisation Report, and has called for immediate action to mitigate the risk of impending price increases.
Despite healthy European storage levels, any further risks to gas flow or oil supplies could significantly impact prices. The report highlights the escalating geopolitical conflicts in the Middle East and Ukraine as ‘mostly likely’ to impact energy security and price stability over the coming months.
With 8 in 10 businesses planning to raise their prices in response to high energy costs, according to research by PWC, it’s clear that businesses ‘should not rest on their laurels when it comes to their energy procurement strategy, but plan for the long-term to hedge against potential price hikes,’ says Advantage Utilities’ Commercial Director, Tim Ross.
“While uncertainty and volatility are always present in the energy market, recent disruption caused by geopolitical conflict has pushed wholesale energy prices upwards. Looking to the longer-term contracts and in particular, flexible procurement strategies, offers businesses the opportunity to capitalise on any dips in the market, whilst reducing risk premiums associated with traditional fixed price agreements,” explains Ross.
Flexible procurement involves securing shorter-term energy contracts when prices are lower rather than opting longer term, fixed price contracts. In principle, this enables businesses to continue to secure the most competitive energy prices at more regular intervals.
Reducing energy consumption is a further mitigation strategy highlighted by the energy experts at Advantage Utilities, enabling significant cost savings to be achieved without changing operational capacity.
Key strategies include:
- Onsite Generation: Solar PV, wind turbines, and combined heat and power systems reduce grid dependency and lower costs, with ROI now under five years due to current electricity rates.
- Efficiency Enhancements: Implementing voltage power optimization, LED lighting, and smart HVAC systems can significantly cut energy use. Building fabric upgrades, such as improved insulation, further drive down consumption.
- Transport & Backup Solutions: Integrating EV charging infrastructure and battery energy storage systems lowers fuel costs and enhances energy resilience.
“If energy prices continue to rise, procuring energy efficiently will be key to reducing overall consumption: delivering immediate savings while supporting long-term sustainability goals,” adds Ross.
Read the full Energy Budget Optimisation Report here.
ENDS
Press Enquiries: For further information, interviews or images please contact the Advantage Utilities Press Team on 01603 743 363 or email steve.pantelli@ambitionpr.co.uk
About Advantage Utilities
Advantage Utilities was founded by Andrew Grover following a career in the energy sector and sales management. Previously co-owner of Abbey Utilities, Andrew established award-winning energy and sustainability consultancy Advantage Utilities in 2001.
With over 20 years in the business, they are experts in their field; Advantage Utilities now has over 40 dedicated and highly skilled staff in energy trading, business energy sustainability, legislation, financing and technology. Leveraging strong industry partnerships, they negotiate the purchase of millions of pounds of energy every year.
For more information visit www.advantageutilities.com
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