How big business could access £4-billion in savings
On November 24th customers, businesses and the media joined us at the Institute of Directors for the launch of our new report: The Twenty Per Cent Imperative.
This simple idea has widespread benefits; reducing energy consumption by 20% – which we believe is achievable for nearly every business – gives cost savings which can improve the competitive edge.
Over £150billion potential savings over next decade
With the UK industrial and commercial sectors spending just over £15billion a year on electricity and £5billion on gas, achieving consumption efficiencies of 20% represents a collective saving of around £4billion annually. And if energy inflation mirrors the previous decade, annual savings put in place now would help to lock in profitability and realise energy savings of £176billion between now and 2024.
Five Key Areas for Business Energy Cost Reduction
Our Twenty Per Cent Imperative Report sets out five key areas for businesses to focus on to reduce energy costs by a fifth:
- Make the business case for an energy-saving programme, including identifying return on investment.
- Invest in renewable and embedded generation such as onsite renewables or CHP and biomass to enhance security of supply and reduce costs long-term.
- Recover and recycle energy by gaining greater understanding of your business’s energy journey.
- Don’t underestimate the value of training, behavioural change and a shift in working patterns to support energy savings.
- Look at external financing options such as Energy Performance Contracts to unlock the full range of efficiencies.