The UK's manufacturing organisation, Make UK, has made calls for an industrial energy market regulator. This would give energy intensive industries the support they need when it comes to high energy costs.
Make UK, feel as though it is unfair that UK industrial businesses face much higher energy prices than their European competitors, making it very hard to compete across the UK.
The industrial sector also feels as though the government needs to Fastrack upgrades the Uks grid capacity so businesses are not forced to move abroad because of a lack of network capacity.
Energy procurement for manufacturers
New concerns about the manufacturing industry have risen due to new research showing that 1 in 3 manufacturing businesses haven’t revised their energy procurement strategies since the 2022 energy crisis. This leaves these businesses vulnerable to volatility in the energy market.
Make UK also found that 1 in 5 manufacturing businesses do not have a clear strategy to protect them from fluctuations in the energy market. This suggests that even after the energy crisis, businesses are still struggling to meet their energy needs.
Having no energy strategy can leave businesses extremely exposed to higher prices.
Make UK suggests that the UK needs to adopt strategies in the same way European countries do to offset prices for the industrial sector.
5 ways manufacturing businesses can improve their energy strategies
Whilst a lot of work needs to be done by the government and policymakers to help the situation that manufacturers are in, there are still ways your business can improve costs. Below are some tips put together by our energy experts on how energy intensive businesses can lower energy prices and make themselves more competitive.
1. Fix energy prices in advance
Instead of buying energy at fluctuating market rates, manufacturers can lock in a fixed price with an energy supplier for a set period (e.g., 12–36 months). This provides cost certainty, making it easier to budget and avoid unexpected price hikes. Fixing business energy costs at a time where prices are low gives you the advantage of having cheaper rates for a longer amount of time.
2. Flexible energy contracts
For businesses that want some control over pricing but don’t want full exposure to market volatility, flexible contracts allow energy to be purchased in blocks when prices are lower. This approach spreads risk while offering opportunities to take advantage of market dips.
3. On-site renewable energy generation
Investing in solar panels, wind turbines, or combined heat and power (CHP) systems can reduce reliance on grid energy. While there is an upfront cost, it provides long-term protection from market volatility and potential savings on energy bills.
4. Energy Efficiency Measures
By reducing energy consumption during peak pricing periods, businesses can lower costs. Implementing energy-efficient machinery, LED lighting, and smart energy management systems can reduce overall usage and dependence on expensive grid power.
5. Energy Procurement through an energy expert
Working with an energy broker or consultant can help businesses secure the best energy deals and advise on when to buy based on market trends. These experts can also assist with risk management strategies and energy efficiency improvements. If you would like to find out more about working with an expert, why not get in touch or get a free quote today?
If you're looking to save money on your energy bills then why not get in touch today? The relationships Resolve Energy has developed with over 24 of the UK’s biggest business energy suppliers allows our energy experts to source the best business energy rates available for your company right when you need them. Request a free quote today and start saving money on your energy.
