Have businesses lost control of their energy use?

Energy efficiency, cost reduction or sustainability – no matter what the business priority is, a successful long-term strategy relies on a degree of certainty in what lies ahead. But with so much volatility still at-play in the energy market, confidence is at an all-time low.

In a recent report we surveyed a wide variety of organisations to learn about the challenges they’re facing. We found that many feel they have lost control of their energy use, including the ability to track and respond to energy demands more effectively and predict future costs with confidence. 

In fact, out of all the organisations we spoke to, only 22% said they have good control of their energy consumption. And 40% of respondents agree that unpredictable costs are limiting their growth trajectory. It means whatever happens with energy costs, supply and consumption, also has knock-on effect on the wider business.

Business growth is being stunted

Faced with increasing pressure to take back control of energy costs, we can see in the report that businesses have responded. 47% said that significant or exceptional progress had been made in improving cost predictability for energy. And 46% said significant or exceptional progress was made in reducing energy cost. However, despite these improvements, confidence remains low.

Only just over one in five organisations feels they have a firm grip on their energy supply and only 22% have confidence in their ability to manage consumption. Likewise, only 21% of businesses feel they have good control over the future cost of energy. And strategies to build resilience are particularly lacking with only 14% of businesses saying they had “good control” when it comes to staying resilient against energy market volatility.

Pressure is increasing

Uncertainty around energy costs and supply are not the only challenges businesses face. Managing growing pressure from stakeholders alongside a tough macroeconomic environment, makes things like regulatory changes difficult to keep up with. As many as 43% of organisations also felt that new ways of working, such as a distanced workforce post-pandemic, is making it harder to track and respond to energy demands.

Improve cost control

It all adds up to the need for a more assertive approach – one that’s focused on regaining control over an organisation’s energy costs and long-term sustainability. To help you build the business case for a new strategy, download our report ‘How data, onsite generation and leadership strengthen energy control’. Inside you’ll find more information and recommendations on how to transition energy from a cost centre that drags on business growth to a resource that propels it.