During the past couple of years, one story that has dominated the news and is the talk amongst concerned households and business owners everywhere is the constant rise in energy costs. These have risen at an exponential rate for a number of different reasons and as such, they are beginning to impact different companies from all industries and all corners of the country. This article is going to go into more detail about these rising energy costs, what has caused them, how they impact businesses and if there’s anything businesses can do to reduce the overriding damage.
Why The Increase?
There are a few different reasons for the increase in energy costs. Firstly, due to climate change, the summers and winters across the world have been the extremes of what people are usually used to. In Europe in 2020 and 2021, the winters were incredibly cold, and as such, there was a squeeze on the global supply of energy. Counter that with the likes of Asia who saw some of their hottest summers since records began leading to increased demand of air conditioning systems, the overall global demand of energy and energy providers has increased. This comes alongside the ongoing war in Ukraine. Russia was previously a large distributor of energy sources, but this has had to stop as the war continues, meaning that as the demand for energy has gone up, the supply has simultaneously decreased.
How Are Rising Energy Costs Impacting Businesses?
Unlike a lot of households who are also experiencing increased energy costs, small businesses who are on commercial energy tariffs don’t have protection in place with price caps. Alongside this, energy tariffs are continuing to rise thanks to the spike in energy prices. The average price increase for businesses is around 250%, which is an amount that for some simply isn’t sustainable.
With inflation increasing as well as energy prices, it’s hard for businesses to keep running at their usual rate whilst also turning a profit. Not to mention, the general public are also affected by rising energy costs, meaning they are a lot less likely to spend money too, creating another obstacle that gets in the way of profit margins.
Can Anything Be Done?
Whilst the lowering of energy costs and setting of price caps is in the hands of the government, there are still some actions that businesses themselves can take to try and reduce energy costs as much as possible. One of these actions is to shop Digital Energy by 5 to find the best prices. By comparing some of the different deals out there, organisations can ensure that they’re paying the right amount and won’t fall victim to exaggerated energy prices.
The Rise in Energy and Businesses
The increase in energy prices has been a hot topic for the past year. These prices are having a detrimental effect on businesses, and as such, it’s important that organisations do what they can to stay on top of their energy costs and ultimately try to reduce what they’re paying.
