Insights

Client Briefing on Energy Price Rises

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ITPEnergised is a trusted advisor providing client-focused, reliable, commercially minded, environmental and energy consulting services. We work with our clients to monitor the energy industry and we are seeing large increases in costs so there has never been a better time to minimise your energy consumption and reduce the impact of rising unit costs on your bills.

If you are thinking of switching supply or are interested in reducing your bills it is always important to make steps to reduce your usage first through energy efficiency and energy management. The cheapest energy is the energy you don’t use. You should also consider what low carbon on-site generation technologies might help you achieve this.

At ITPEnergised we have seen gas and electricity prices increase significantly for our clients recently. The bounce back from lockdown has seen demand for gas grow globally, but after a cold April/May the UK is light on storage reserves. This has seen an increase in the amount of coal generation required to keep the lights on. These factors in conjunction with the current reductions in gas supply from Russia has meant that gas prices are high and are likely to remain so for the near future.

Given that a significant percentage of electricity is generated at gas fired power stations, this has also resulted in large increases in wholesale electricity unit costs.

In addition, for those of you who use different fuel sources, the forthcoming HMRC changes on some types of oil, which are due to come in April 22 2022, also mean it is the right time to review any reliance on oil and what impact these changes might have on the bottom line. We have been working with some of our clients to review the impact of these HMRC changes on their current practices and what steps they can take to reduce the financial impact.

At ITPEnergised, we have worked with numerous clients across all sectors to review their current practices and help them identify cost effective energy efficiency opportunities. We also work with organisations to implement energy management systems such as ISO 50001 and EnCO. In addition, we provide technology agnostic analysis of on-site low and zero carbon technologies that could be implemented to reduce reliance on imported energy from grid. All of the above are key tools on any net zero transition.

“True value added. We have an action plan that extends beyond pure energy efficiency.” Ian Flavill, Head of Facilities, Coller Capital

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