How Businesses can Shelter From the Gathering Energy Storm

How Businesses can Shelter From the Gathering Energy Storm PR Newswire LONDON, June 20, 2012 LONDON, June 20, 2012 /PRNewswire/ -- Rising energy prices are impacting the profitability of UK businesses. Over the past 15 years the compound average annual electricity price increase for a medium-sized business is nearly 4 per cent, twice the rate of inflation. These rising prices have brought opportunities for companies to secure a competitive advantage. Recent research illustrates the early stages of a gathering storm. The UK is investing £30m each day to replace 30 per cent of its power plant by the end of the decade. This investment combined with more extreme weather will push up energy use as well as energy prices. Government announcements on Electricity Market Reform demonstrate a clear commitment to increasing use of low carbon energy but this too will add to energy costs. Business leaders can take action now to manage their energy use and bring long-term profitability improvements to their business. These are four key areas for opportunity: Invest in energy efficiency The key for businesses is to recognise that they need to spend money to save money. Where energy efficiency requires upfront investment, a carefully designed strategy can deliver significant returns. Marks & Spencer claimed that its "Plan A" CSR strategy yielded a 23 per cent improvement in energy efficiency in 2010/11, including £13.