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Posted 5 months ago | 2 minute read
Businesses struggling to find solutions to cut energy costs, survey finds
More than half of businesses in Britain have identified a lack of immediate solutions as the foremost barrier impeding efforts to address high energy costs effectively, according to a survey conducted by PwC.
The survey of 750 organisations highlights the impact of escalating energy expenses, with 77% of respondents indicating that they have raised the prices of their products and services over the past two years due to energy-related expenditures. 81% of participants also anticipate further price hikes within the next two years, with 72% expecting adverse effects on profits and international competitiveness.
In addressing the rising energy costs, businesses are employing various strategies such as reducing energy consumption (27%), targeting carbon emissions reduction (27%), reviewing energy procurement strategies (37%), enhancing energy efficiency (31%), and embracing corporate power purchase agreements (34%). But, significant obstacles, including gaps in understanding energy dynamics across organisational hierarchies and environmental considerations are hindering progress.
The research also noted that environmental concerns are among the challenges cited by businesses, with nearly two-thirds identifying them as top barriers to effectively mitigating energy costs. Additionally, 37% of businesses report that high energy expenses have impeded their efforts to decarbonise operations, while only 3% report accelerated progress in this area. Primary drivers of decarbonisation efforts included energy security (highlighted by 61% of respondents) and regulatory compliance (58%), with regulatory factors expected to exert even greater influence in the foreseeable future.
GridBeyond COO Mark Davis said:
“Reaching net zero while achieving predictable and controlled energy costs is a multi-year transformation and will require long-term vision. But there are solutions available today.
“When it comes to reaching net zero there are a variety of paths that businesses can take. But each comes with its own challenges and impacts on both operations and budgets. GridBeyond provides a cutting-edge suite of products and services, designed to transform the way you purchase, use and manage your energy.
“Our solutions combine machine learning, AI and data solvers with an experienced trading team to deliver carbon and cost savings, while simultaneously addressing the commercial and operational aspects of your asset portfolio through clean power purchasing, energy risk management and asset finance, installation and operation.”
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