‘Businesses will shoulder the cost of energy efficiency schemes – but brokers can help mitigate these impacts’
As the government continues to change the parameters of the energy sector, costs per unit will continue to rise – that’s the view of James Rant, Business Development Manager at Utility Team.
He said: “The brunt of that cost is actually being shouldered by medium to large-sized businesses, it’s the commercial energy user that seems to be the target for subsidising all of this.”
The Energy Company Obligation (ECO), which is a government energy efficiency scheme to help reduce carbon emissions and tackle fuel poverty, will soon be extended to a further 900,000 households to ensure as many fuel poor homes as possible can secure a minimum energy efficiency rating of a Band C by 2030.
Utility Team supports the change to the scheme and agrees that the most vulnerable should receive support, but says it is important to remember someone will have to pay for it. James suggested businesses and commercial energy consumers are likely to shoulder the cost but said Utility Team is able to help mitigate this by helping its clients save energy and money.
He said not only can this can be done by strategically purchasing energy in advance to obtain the best market rates but added the firm would focus on tackling consumption at its source by drawing up sustainability plans and implementing measures to save energy.
“We can lock energy consumption out long-term, so businesses have stability of cost for three to five years – you know what you’re going to be paying.
“We trade in experience and information as much as we do in energies, these days the majority of businesses simply need guidance on how these policies can affect them and what to then do to protect operational costs.
“But behind just agreeing what you’re going to be paying, it is important that we then also implement a strategy during that contract which we will part-fund to help reduce consumption.
“It could be anything as simple as LED light bulbs, it could be anything as complicated as Combined Heat and Power (CHP), self-generation and solar.”