Survey reveals only 12% of industrial energy buyers prepared for higher prices

The writing may have been on the wall for some time – energy prices are on the rise – but it seems that the vast majority of industrial energy buyers are still not prepared for the price hike, reports voltage regulation experts EcoAdapt (http://www.ecoadapt.co.uk).

A new survey of major energy buyers with an annual energy spend of between £1 million and £20 million in Europe and the UK has found that just 12% of them are ready for the steady increase in future energy prices. The survey, by gas and electricity broker EnergyQuote JHA, also found that most – 87% – had failed to adopt green energy alternatives due to the higher cost of many such options. When polled, 44% of energy buyers said they had no plans to purchase green energy and 47% said they would only do so if there was little or no extra cost attached. Nearly two thirds of those companies considering renewable energy options were looking at on-site wind, solar or biomass generation.

Another surprising finding from the survey was the fact that the companies did not see a risk management policy in this arena high on the priority list, instead taking an informal approach to managing risk associated with rising energy prices. When it comes to procurement, 47% of the energy buyers polled said that they would purchase up to one or two years ahead of at least 50% of their energy at forward market prices.

Commenting on the survey findings, managing director of EnergyQuote JHA, Gary Worby, said, “Our survey indicates that rising energy costs are set to be the future norm. This damaging trend will have vast potential to impact on corporate profitability. It is therefore paramount that UK and European energy consumers have a detailed understanding of best practice energy procurement and can access insightful market intelligence to make informed decisions”.

When it comes to making informed decisions about energy saving technology in order to protect a company’s profitability, there’s no better place to start than the EcoAdapt website at http://www.ecoadapt.co.uk.