In August 2012, executives from the U.K.’s leading energy suppliers revealed that the transfer and distribution costs associated with initial price points and environmental infrastructure upgrades would ultimately be passed onto the consumer, with an estimated sum of £22 million in total. The argument from organizations such as E.ON, Npower and British Gas is that these costs are necessary if they are to continue delivering a viable service, while generating the requisite level of profit.
Fact or Fiction: Are Energy Price Hikes Justified?
While the business reasoning of these UK energy giants is sound on the surface, such claims are not supported by hard figures. These figures reveal the high profit margins currently enjoyed by leading British energy suppliers, with industry regulator Ofgem reporting that margins have risen by a startling 40% since September 2011. This is something that the organisation is continuing to investigate, especially with the vast majority of recently incurred costs set to be absorbed by British business owners who are struggling to remain profitable in 2012.
Herein lies the core issue: how can energy giants seek to pass on substantial costs to consumers when they have experienced a significant rise in profitability during the last twelve months? Not only this, but how can they justify placing such a financial burden on businesses and ventures that have absorbed huge financial losses during the same period? The issues demand serious investigation, although the time consuming nature of such a process means that businesses must protect themselves in the meantime.
Compare the Market: Ensure that you get the Best Possible Price for your Energy Usage
With energy prices facing a potential 25% rise between now and 2020, business owners must be proactive in order to make long term and sustainable financial savings. There are two ways in which they can attempt this task, with the first being to empower a culture of change within the workplace and educate staff members on the importance of conserving energy. This includes modifying methods of working and processes to make them more energy efficient.
Secondary to this is the need to compare energy prices, which has the potential to deliver more immediate if less predictable savings. By using a wealth of accessible online resources, you can compare the prices of the UK’s most reputable energy suppliers to determine the very best deal for your business’ needs. Given the intense competition that is prevalent in the energy supplier marketplace, now is an ideal time to evaluate independent firms and switch suppliers. Remember that new customers are always rewarded with the very best deals, so capitalise on this.
The Bottom Line: Why you Must Assume Control of your Own Energy Consumption
We live in uncertain economic times, where businesses and service providers must work hard to maximise their levels of profitability. It is the responsibility of business owners to assume control of their energy usage and expenditure levels. By creating a culture of awareness and responsibility among their staff, and remaining vigilant in pursuit of the vest energy prices on the market, business leaders can reduce their costs and thrive in today’s business climat
Author Bio: This article has been provided by Enerfina, a fully independent market intermediary in the renewable energy sector.