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Four out of five businesses are failing to adequately control their energy consumption.
That is the key finding of Centrica’s study into business customers’ energy control, which reveals that only 22% of businesses have a good handle on their energy use.
The report concludes that uncertainty about energy consumption is having a direct impact on business confidence, with 40% of respondents claiming to have put off expansion plans due to concerns about energy costs.
“Only just over one in five feel they have a firm grip on their energy supply,” the report states. “Meanwhile, only 14% of organisations consider themselves resilient against energy market volatility.”
It adds: “Price volatility can’t be blamed for everything. What also emerges in the responses is a disconnect in how energy is viewed across the organisation.
“For while 24% of senior managers feel their organisation has good control of its energy supplies, only 8% of those working on the ground in the energy procurement function feel this. This suggests that senior managers may not always be aware of the realities facing their organisation.
“Sustainability executives have a better grasp of energy consumption, with 32% saying they have good control over this.”
The report adds that to mitigate volatility in the market and to restore control of their energy costs, businesses intend to increase onsite generation during the next two years.
Two fifths (40%) of respondents said they see the appeal of onsite generation lying in its ability to mitigate volatility in the market, while almost a third of organisations see onsite generation as a means of gaining control over energy costs.
Consequently, nearly two thirds (63%) of organisations expect to invest in onsite energy generation over the next two years.
However, the report concludes that “organisational leadership is creating a major obstacle to progress”.
It adds that almost half of survey respondents say that decision makers are failing to see the business case for onsite generation.
“Engaging the energy managers who deal with these issues day-to-day will therefore be critical to making the case for onsite generation and turning energy strategies into action,” the report concludes.
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