Senior decision makers, responsible for businesses energy resources feel uninformed about the effect that rising non‐commodity charges may have on their business, with 58% admitting they are either unaware or unsure about the possible impacts. The research commissioned by npower Business Solutions has underscored the need for businesses to better prepare for and more actively manage future energy costs.
Conducted by YouGov, the survey of UK Senior decision-makers, responsible for businesses energy resources found that while two thirds (66%) expected their energy costs to increase in the next ten years, only 13% of these believed these costs would rise by more than 40%, in line with nBS’s prediction of a 40‐45% increase by 2028.
Energy bills are increasing significantly due to compulsory non‐commodity charges, including those from the government or third parties. In the next ten years, these non‐commodity charges will continue to push up the price of energy and have an increasing impact on businesses if not addressed.
To help businesses predict and plan for the rising cost of energy, nBS has launched a free to access online tool called Cost Predictor, giving energy managers a tailored view of how their business will be impacted by commodity costs, network charges and policy costs. Crucially, Cost Predictor also shows how these costs can be managed through the levers of smart purchasing, demand management, energy efficiency and behaviour change.
When surveyed, 88% of senior decision makers said their organisation did not have access to a tool that can predict energy costs tailored to them over the next ten years, demonstrating the need for Cost Predictor.
Wayne Mitchell, Director of Markets and Innovation at Energy HQ, npower Business Solutions, said: “There is a worrying knowledge gap among some energy managers in the UK when it comes to understanding the impact of non‐commodity costs, which will hurt businesses if not planned for and managed carefully. Step one is to forecast how these costs will impact an individual business but this needs to be followed with the implementation of a long term energy management strategy. Cost Predictor does the leg work – it’s the first online resource that can show future costs as well as how these can mitigate through a range of energy strategies, to help many sized businesses from any sector to manage these challenges.”