Navigating Unprecedented Energy Costs and the cost of living crisis: Strategies for UK Businesses

The year 2024 has brought a wave of challenges for businesses across the United Kingdom. Among them, the surge in energy costs and the general cost of living crisis stand out as formidable obstacles. 

As businesses grapple with these unprecedented challenges, finding ways to mitigate their impact becomes paramount for survival and sustainability. In this blog post, we'll explore strategies that businesses in the UK can adopt to navigate through these turbulent times.

1. Embrace Energy Efficiency:

One of the most effective ways for businesses to mitigate high energy costs is by prioritising energy efficiency measures. Conducting energy audits to identify areas of waste and inefficiency can uncover opportunities for significant savings. Simple steps such as upgrading to energy-efficient appliances, improving insulation, and implementing smart lighting and heating systems can lead to substantial reductions in energy consumption and costs over time.

2. Invest in Renewable Energy:

Transitioning to renewable energy sources can provide long-term relief from volatile energy prices while also demonstrating a commitment to sustainability. Installing solar panels, wind turbines, or investing in community renewable energy projects can help businesses reduce their reliance on traditional energy sources and insulate themselves from future price fluctuations.

3. Negotiate Contracts Wisely:

In times of soaring energy costs, renegotiating energy contracts can be a prudent strategy. Businesses should explore options such as fixed-rate contracts or hedging strategies to lock in favourable prices and shield themselves from sudden spikes in energy prices. Collaborating with energy consultants or brokers can provide valuable insights and help businesses navigate complex energy markets to secure the best possible deals.

4. Implement Flexible Working Practices:

With remote and flexible working becoming increasingly common, businesses can leverage these practices to reduce their energy consumption and overhead costs. Encouraging employees to work remotely or implementing flexible scheduling can lead to lower energy bills associated with office spaces and facilities. Additionally, embracing digital communication tools can minimise the need for travel, further reducing energy expenditure and environmental impact.

5. Optimise Supply Chain and Operations:

Streamlining supply chain processes and optimising operational efficiency can yield cost savings that buffer against rising energy expenses. Embracing lean principles, adopting just-in-time inventory management, and optimising transportation routes can reduce energy-intensive activities and enhance overall productivity. Collaborating closely with suppliers and partners to identify opportunities for mutual cost savings can also yield significant benefits for all parties involved.

6. Prioritise Employee Well-being:

The cost of living crisis not only impacts businesses directly but also affects employees' financial well-being. Prioritising employee well-being through measures such as offering competitive wages, flexible working arrangements, and comprehensive benefits packages can help businesses retain talent and maintain morale during challenging times. Moreover, supporting employees with financial planning resources and wellness programmes can alleviate some of the financial burdens they may be facing outside of work.

7. Advocate for Policy Changes:

Finally, businesses can play a proactive role in advocating for policy changes that address the root causes of the energy crisis and cost of living challenges. Engaging with policymakers, industry associations, and community organisations to support initiatives that promote renewable energy investment, energy efficiency incentives, and measures to alleviate financial strain on households can create a more conducive environment for businesses to thrive.

In conclusion, while the current energy crisis and cost of living challenges pose significant hurdles for businesses in the UK, proactive measures and strategic planning can help mitigate their impact. By embracing energy efficiency, investing in renewables, negotiating contracts wisely, implementing flexible working practices, optimising operations, prioritizing employee well-being, and advocating for policy changes, businesses can navigate through these turbulent times and emerge stronger and more resilient in the face of future uncertainties.

The following links will be of help:-

Energy Consultants Association:-

https://energyconsultantsassociation.co.uk

Business Comparison 

https://www.businesscomparison.com

Hybrid Energy Storage Becomes Big Business says Zhar Research

Delayed electricity is required for backup, to cover intermittency of supply and demand, to smooth fierce inputs and to provide fierce outputs when needed, for example. 

The basic technologies for this include supercapacitors, conventional batteries and facilities resembling chemical factories. 

Between the last two are redox flow batteries RFB headed for $22 billion in sales in 2044 according to the analysis in Zhar Research report, “Redox Flow Batteries: 26 Market Forecasts, Roadmaps, Technologies, 48 Manufacturers, Latest Research Pipeline 2024-2044”. Interestingly, most of that will concern beyond-grid such as microgrids, industrial processes and solar buildings capable of disconnection from the grid. Hybrids of the basic design and a battery are involved.

RFB attributes are very suitable for these needs but, for mainstream grid storage, battery-less solutions such as pumped hydro and underground compressed air have a stronger position, even though RFB can perform the increasingly necessary Long Duration Energy Storage LDES. That is covered by Zhar Research LDES reports.

Hybrids are more than curiosities

A closer look reveals even hybrids of supercapacitors, conventional and redox flow batteries aren't merely curiosities, they are going to outsell some of the core technologies from whence they came.

New analysis by Zhar Research shows Battery Supercapacitor Hybrid BSH, starting with the ones called Lithium-ion Capacitors LIC, will outsell supercapacitors to reach $10 billion in 2044. See Zhar Research report, “Lithium-ion capacitors and other battery supercapacitor hybrid storage: detailed markets, roadmaps, deep technology analysis, manufacturer appraisal, next successes 2024-2044”.

Power and speed

As any karate expert slicing a brick will tell you, the need is both power and speed. Electric equivalents include the new unmanned mining, thermonuclear fusion power and electromagnetic and electrodynamic weapons arriving. 

The supercapacitor bank often used today in these applications provides the speed and fit-and-forget but its size brings inductive and resistive losses and is inconvenient on vehicles, so there are early signs that lithium-ion capacitors LIC are proving better. Actual examples include the Chinese microgrids, shunting locomotives and mining vehicles, the Japan Tokamak fusion reactor and Toyota fuel cells now using them.

Fit-and-forget is demanded

Academics may point out that cycle life sometimes drops from one million for supercapacitors to 50,000 for LIC but industrialists make the more important point that even the lower figure is almost always longer than the life of the equipment to which the LIC is fitted.

In other words, out in the real world, it's still, in effect, infinite life and certainly more than a magnitude better than any battery will achieve. 

This is why Kurt Energy in Germany has a 150kWh LIC driving a large excavator vehicle for fit-and-forget, reliability and safety beyond a lithium-ion battery. 

The SURE company in the Netherlands now employ LIC in its rental e-bikes for greatly improved damage tolerance, life and safety. 

A huge research pipeline, particularly for 2023 and 2024, that is analysed in the report, shows how replacing the lithium in LIC with any of ten metals or exotica such as metal organic frameworks MOF, zeolite ionic frameworks ZIF and MXenes can variously lead to BSH with lower costs, better performance and uncontrolled disposal facilitating much more widespread deployment.

Outselling supercapacitors and traditional RFB

So much for the very important battery supercapacitor hybrids that will outsell supercapacitors. Let us also look at hybrid redox flow batteries that will outsell traditional RFB.

This is analysed in Zhar Research report, “Redox Flow Batteries: Market Forecasts, Roadmaps, Technologies, Manufacturers, Research Pipeline 2024-2044”. The traditional RFB has growing markets despite typically using expensive vanadium that must be recovered at end of life. It looks rather like a chemical factory with its large analyte and catholyte tanks and although ones as small as a few kWh are sold, something more compact, lighter weight and simpler is needed without incurring the flammability, thermal management, battery management cost and associated clutter of lithium-ion batteries.

Hybrid RFB taking a large share

Enter the hybrid of RFB and a conventional battery so, for example, there may be only one tank of liquid. The potential improvement is huge, involving around 60% reduction in size, weight and cost compared to vanadium RFB without performance compromises or valuable or toxic materials being involved. Another huge research pipeline progresses these and companies offering iron, iron chromium and other materials in their hybrid RFB are taking substantial orders now. 

The report finds that RFB will mostly be sold for beyond-grid stationary storage such as industrial processes, solar buildings and microgrids. In 2044, 75% of the $22 billion RFB market will be served by non-vanadium versions that are hybrids such as iron, HBr or HMn-based chemistries.

We have been discussing two different worlds – the BSH mainly managing massive surges in and out and backup and the hybrid RFB mainly providing smoothing and load shifting. Both will sell more into electrical engineering than electronics applications which are still substantial. However, the two hybrids will even compete to some extent. Consider the zero-emission electricity generation that is less intermittent than wind and solar.

It is arriving in the form of ocean wave and open-sea tidal power, for instance, where more modest storage is needed, but it needs to be in a form that is zero maintenance, not flammable, very temperature-tolerant and lasts longer than the equipment to which it is fitted. Both BSH and hybrid RFB are candidates for this. Consider solar buildings arriving everywhere, dead at night. Sustainable Energy Technologies Inc offers BSH for solar buildings and Cougar Creek and ESS offer hybrid RFB for the same application currently covered by lithium-ion batteries with inadequate charge retention and life.

Huge opportunities for devices and their value-added materials

The conclusion must be that you ignore hybrid energy storage technologies at your peril, notably BSH and hybrid RFB. You have major opportunities for your added value materials and devices here.

Capacitor supercapacitor hybrids

A smaller but higher profit opportunity is the tantalum capacitor-supercapacitor hybrid CSH, mostly small devices serving the new forms of laser, radar and military electronics needing better ripple tolerance and smaller size and weight than tantalum electrolytic capacitors. See that analysis in the overview Zhar Research report, “Supercapacitor, pseudocapacitor, CSH and BSH hybrid market forecasts in 30 lines, 95 manufacturers appraised, technology roadmaps, next successes 2024-2044”. 

Learn more at www.zharresearch.com and https://www.giiresearch.com.

Powering a Brighter Future: Why Your Business Should Invest in Solar Panels

In today's fast-paced world, businesses are constantly searching for innovative ways to cut costs, reduce their carbon footprint, and enhance their sustainability efforts. One powerful solution that can tick all these boxes is the adoption of solar panels. 

Solar energy is not just an environmentally friendly choice; it's a smart financial decision that offers numerous benefits for businesses. In this blog post, we'll explore the compelling reasons why your business should consider investing in solar panels.

Cost Savings:

One of the most convincing reasons to invest in solar panels is the potential for significant cost savings. Traditional energy sources, like fossil fuels and electricity from the grid, can lead to unpredictable and ever-increasing energy costs. 

By harnessing the power of the sun, your business can generate its own clean energy, reducing its reliance on these costly energy sources. Solar panels offer a long-term solution with a fixed upfront cost, enabling businesses to plan their energy expenses more accurately and save money in the long run.

Return on Investment (ROI):

Solar panels offer a remarkable return on investment. While the initial installation cost might seem substantial, the long-term savings in energy expenses often outweigh the upfront investment. In addition, various government incentives, tax credits, and renewable energy certificates can further accelerate your ROI. Depending on your location, you might even be able to sell excess energy back to the grid, turning your solar installation into a profitable venture.

Environmental Impact:

Businesses today are expected to play their part in reducing greenhouse gas emissions and combatting climate change. Solar panels are a clean and renewable energy source, helping your business dramatically reduce its carbon footprint. By transitioning to solar energy, your company can proudly promote its commitment to environmental responsibility and sustainability, which can attract eco-conscious customers and partners and enhance your brand's reputation.

Energy Independence:

Relying on traditional energy sources means being at the mercy of fluctuating energy prices, supply disruptions, and geopolitical uncertainties. Solar panels provide your business with a degree of energy independence. By generating your own electricity, you're less vulnerable to price volatility, making your company more resilient to market fluctuations and energy crises.

Marketing and PR Benefits:

Consumers today are increasingly inclined to support businesses with strong environmental values. Investing in solar panels can be a compelling marketing and public relations tool. Your commitment to sustainable practices can set you apart from competitors, attract environmentally conscious customers, and strengthen your relationships with stakeholders who value corporate responsibility.

Long-Term Durability:

Solar panels are designed to last for decades with minimal maintenance. Most manufacturers offer warranties that extend for 20 to 25 years, ensuring a reliable source of energy for your business. Their durability and low maintenance requirements make them a wise long-term investment.

Future-Proofing:

The energy landscape is evolving rapidly. Solar panels provide a hedge against rising energy costs and potential future energy regulations. By investing in solar now, your business can position itself to thrive in a world that's increasingly moving towards renewable energy sources.

In conclusion, investing in solar panels for your business is not just an eco-friendly gesture; it's a strategic decision that can save you money, enhance your reputation, and future-proof your company. With financial incentives, technological advancements, and growing public support for renewable energy, now is an ideal time to consider incorporating solar panels into your business operations. The sun offers an endless source of clean and sustainable energy, and harnessing it can lead your business toward a brighter and more profitable future.

Feel ripped-off by your business gas provider? Energy Advice Line saves customer thousands on incorrect bills

BUSINESS energy users who believe they have been overcharged or issued incorrect bills by their supplier are urged to contact the Energy Advice Line for free help.

A leading price comparison and switching service for businesses in the UK confirmed the findings of a report revealing that thousands of consumers could be missing out on refunds or compensation because of billing mistakes by suppliers.

The report by consumer organisation Which? showed that the ‘big six’ energy firms received over four million complaints from customers last year. The most common problems were mistakes on bills and inaccurate meter readings.

It suggested because many customers failed to pursue their complaints, they were losing out on up to £4 million in compensation.

Julian Morgan, the managing director of the Energy Advice Line, the UK’s leading price comparison and switching service for business, said business electricity and business gas customers were in the same position as domestic consumers when it came to billing mistakes.

“Business energy supply companies make mistakes, we know that for a fact, and sometimes these issues go unresolved for so long that customers just get worn down and give up,” Mr Morgan said.

“We help our customers who are switching suppliers resolve these issues by taking them up directly with the utility companies on their behalf. Sometimes because they have dragged on for so long these problems can be difficult to unravel, so having experts on board can help enormously.”

Sally Atherall had given up hope of resolving a dispute with British Gas until she called the Energy Advice Line. One year after she had sold her dog kenneling business, British Gas had sent her a final business energy bill demanding £3,260.

Sally knew the bill was wrong and spent many fruitless, stressful and tearful weeks trying to convince the supplier they had made a mistake. But her complaints were rejected and British Gas insisted that she had to pay. Sally said they began “pestering” her for the money so much that was too stressed to answer the telephone.

As a last resort, she contacted the Energy Advice Line for help.

“I began to feel helpless, hopeless, tearful and alone,” Sally said. “Fighting against British Gas was useless on my own. I decided to ring the Energy Advice Line one day to try to gather more evidence, as they had arranged my electricity supply for several years.

“What a relief. I told them my story and they offered not only to help me, but to take the case on for me and deal with British Gas on my behalf. They even took time to ring me back to check I was OK as I had sounded upset.

“Eventually, the complaint was brought to the director of customer services for British Gas. They still insisted that I owed them the money and sent me a CD of the voice recordings made when I had telephone them with meter readings in the past.

“A copy of the CD was also sent to the Energy Advice Line. On playing it, they realised that British Gas had used the wrong 'start' reads to create my bill. I do owe British Gas a small amount of extra money but nowhere near £3,260.

“British Gas doesn’t care about their customers and have no idea of the heartache they cause when they get it wrong and refuse to listen. Even now, they have not offered one word of apology.”

The Energy Advice Line has also urged business energy users to check their bills to ensure they are being charged the correct level of VAT.

The VAT on electricity and gas for business energy consumers is normally charged at the standard rate of 20% (correct as at 4 January 2011). However, some firms that meet so-called de minimis requirements are entitled to pay VAT at a rate of only 5%.

To meet the criteria for this lower rate, a business must use no more than 33 kWh per day on average for business electricity and/or less than an average of 5 therms or 145 kWh per day for business gas.

Firms that believe they have been paying too much VAT, or have other billing issues, should contact the Energy Advice Line on 0800 915 1800 or visit www.energyadviceline.org.uk

FACTFILE:
The Energy Advice Line, an impartial online business electricity and business gas price comparison service run by business energy experts for business energy customers, dedicated exclusively to the needs of small and medium-sized businesses in the UK. Realising that small and medium sized business electricity and gas consumers want product choice, EAL has developed an online price comparison and switching service exclusively dedicated to their needs. Visit http://www.energyadviceline.org.uk/ for more details.

(EDITOR: Beat 'rip-off' Britain. Get the Energy Advice Line on your side!)

OVO Energy Cuts Its Prices - Big Six To Follow Suit?

Ovo Energy's announcement that it is cutting its prices by 5% or £55 a year is good news for consumers, says uSwitch.com, the independent price comparison and switching service.

The move follows its recent decision not to implement a planned price increase for variable rate customers and rival company Co-operative Energy's announcement that it is cutting its standard dual fuel prices by £35 a year]. However, the Co-op's price cut doesn't come into effect until 1st February while Ovo's is with immediate effect, allowing its customers to feel the benefit sooner.

Tom Lyon, energy expert at uSwitch.com, says: "This is the kind of consumer-friendly move we've come to expect from Ovo. In one fell swoop it has given cash-strapped consumers a lending hand, become the second cheapest energy supplier on the market and laid the gauntlet down to the big six suppliers. The fact that the Co-op had cut its prices could be shrugged off, but now that Ovo has followed suit the big six will be feeling the pressure as all eyes will now be on them.

"The move is another reminder why smaller players are so welcome in the market - they are nimble enough to be able to turn price cuts around far more quickly than the bigger players, making them a good consumer-friendly alternative. No doubt this appeal will have been further enhanced by the fact that Ovo Energy is now the second cheapest supplier on the market with an average annual bill size of £1,061. This offers an average saving of £66 a year compared with being with one of the big six, making Ovo a competitive and viable alternative. Only First:Utility, another small player, is cheaper.

"However, Ovo's price cut does not benefit all of its existing customers - those who are on a variable rate or whose current fixed rate is not up for renewal will not reap the rewards. Also the big six are not completely out of the picture - there are still some very competitive deals out there. But the fact is that prices have rocketed by £224 or 21% this year[3] and price cuts will take some time to trickle through - households can mitigate the impact by shopping around for a cheaper deal."

Best buy energy deals:

Supplier: First: Utility
Plan Name: iSave Dual Fuel V9
Price: £1,030

Supplier: Ovo Energy
Plan Name: New Energy Fixed
Price: £1,061

Supplier: nPower
Plan Name: Go Fix 10
Price: £1,078

Supplier: Scottish Power
Plan Name: Online Energy Saver 17
Price: £1,085

Supplier: E.On
Plan Name: Save Online 11
Price: £1,106

Supplier: Co-Op Energy
Plan Name: Pioneer
Price: £1,145

Supplier: British Gas
Plan Name: Online Fixed
Price: £1,150

Supplier: EDF Energy
Plan Name: Price Protection 2013
Price: £1,165

Supplier: SSE
Plan Name: Online Standard
Price: £1,179

Source: uSwitch.com

Based on a medium user consuming 3,300 kWh of electricity and 16,500 kWh of gas with bill sizes averaged across all regions.

For more information visit www.uSwitch.com or call 0800 093 06 07

Not-So-Smart Meters: businesses face higher energy bills & being prevented from switching

Businesses are being urged to exercise caution when being offered free smart meter upgrades for their gas and electricity supplies.

The warning comes from Make It Cheaper, the saving experts for business, which has seen a sharp rise in the number of switching attempts that fail because of non-compatibility issues with meters using smart technology. It has also seen some energy suppliers apply additional standing charges to support smart meter technology. These charges range from 20 pence to 60 pence per day (£73 to £219 per year). Even if a supplier accepts a new type of meter from a customer wishing to switch, it is often subsequently read in the traditional ‘dumb’ way and so removing any smart technology benefits.

Any non-domestic site that has had a new meter installed in the past two years is at risk from the compatibility (or ‘interoperability’) problem. These include small businesses, charities and smaller sites of larger businesses or public sector bodies. Whilst there are no official figures available for the adoption of smart meters, recent announcements from the ‘Big 6’ energy suppliers suggest at least 200,000 have already been installed among non-domestic sites. Eventually up to 2.2 million electricity and 1.5 million gas sites will be included in the smart meter rollout of the non-domestic sector.

According to Jonathan Elliott, managing director of Make It Cheaper: “There seems to be a lack of coordination with the rollout of smart meters and so all the suppliers are making different choices over which type to support. As a result, switching is being seriously thwarted when it could have been made so much easier. Until the industry can guarantee open standards that allow hassle-free switching and promote competition, it’s a case of weighing-up the pros with the cons before accepting a smart meter.”

Five tips to get the most out of a smart meter:
1. Check it out. Find out from your supplier the details of what technology platform it uses and whether or not it is supported by other suppliers.
2. Rental charges. Ask for the length of your installation contract and if you still have to pay a rental fee if you switch to a different supplier.
3. Negotiate at renewal. If you can’t switch supplier, you may be able to use this as a reason to negotiate down any future price rises.
4. Use its features. Make sure you optimise its value in helping to understand your consumption and how you can go about reducing it to save energy and money.
5. Billing accuracy. Relax in the knowledge that you will only pay for the energy you use and no longer be vulnerable to the financial hazards of estimated billing.

Make It Cheaper has published information about ‘Smart Meters for SMEs’ and also provides a full list of energy supplier contact details for business customers to make direct enquiries.

FACTFILE:

1. Consumers will have near real-time information to help understand and manage energy use, thereby helping them to save money and play their part in reducing carbon emissions.
2. Smart metering will open up new products and services, such as the provision of tailored energy efficiency advice and more innovative tariffs.
3. Suppliers and networks will be able to receive alerts if a customer goes off supply and when supply is restored – this will enable corrective action to be taken sooner, thereby minimising disruption to consumers.
4. The remote functionality of smart meters will allow switching between payment methods and will open up additional payment channels for prepayment customers (i.e. top up over the phone, via the internet or ATMs).
5. Data can be communicated between the meter and the energy supplier or other authorised parties.
6. Meters can be read remotely by the energy supplier allowing for accurate and timely billing.
7. The ability to connect devices to the meter, such as a telephones or computers.
8. They will support ‘time-of-use’ tariffs, which offer different levels of charges, depending on when the energy is used.
9. Equipment that has been linked to the meter can be turned off automatically by a business at particular times to benefit from varying pricing levels.
10. Where electricity is generated at the site (such as through a wind turbine or solar panel), any excess electricity exported can be measured, to give an accurate calculation of Feed-in-Tariff (the premium paid to a consumer by its utility).

Established in 2007, Make It Cheaper is the number one destination for businesses to get a better deal on their utilities and business services. Based in Central London, Make It Cheaper receives more enquiries and arranges more new contracts than any other business price comparison service. These include the business customers of major domestic price comparison services with whom Make It Cheaper has partnerships, as well as business membership organisations, charities and trade associations. Acting on behalf of all these customers with total impartiality and free of charge, Make It Cheaper offers year-on-year savings across a range of products including business electricity, business gas, telecoms and merchant services. Using its expertise and scale in the SME market, Make It Cheaper will typically save its customers over 30% of costs as well as a considerable amount of time that they can then spend on running their businesses.
Last year, Make It Cheaper was a finalist for 'SME of the Year' at the National Business Awards, 'Young Company of the Year' at the CBI's Growing Business Awards and 'B2B Customer Service Team' at the National Customer Service Awards.