For all the latest news stories visit www.eibi.co.uk ENERGY BAROMETER REPORT


Report reveals regional differences in business energy costs


UK businesses are paying 6% less for energy compared to the previous quarter, but significant regional disparities persist, according to the latest POWWR Energy Barometer Report. The study, based on over 440,000 data points, found that businesses in North Wales pay over £2,000 more annually for energy than those in the North East of England, where the average cost is £4,237. The average UK business


now spends £5,117 annually on electricity, down from £5,446 last quarter and nearly half the peak costs seen in late 2022. Very small businesses, however, have faced a 5% increase in bills, contrasting with larger firms that have benefited from reduced energy usage and costs. While businesses in North


Wales have seen their bills increase by 1% to £6363, those in South Scotland have seen their bills decrease by over 14%. Very


large businesses in the region saw the biggest reduction in their bills, from £32,400 to £28,918 (11%). The report reveals that average UK business now consume around 23 MWh of energy a year, 15% less than the same period in 2023. Whilst businesses that use more than 50 MWh a year have seen their energy usage decrease this quarter, very small businesses that use less than 10 MWh of energy per year have actually increased their average usage by almost 10%. “On the whole, the report brings good news for embattled UK businesses, showing that not only are they using 3% less energy than the previous quarter but are paying 6%


less for it. Whilst some of the decrease will have come from the unseasonably mild weather seen during the quarter, it also points towards UK businesses becoming increasingly environmentally conscious,” explains Matt Tormollen, CEO, POWWR At a time when both average


energy usage and cost has decreased, the average contract term preferred by UK businesses has increased from 25 to 27 months. A business, however, would typically save 2.7% by signing this contract with someone other than their existing supplier. “With energy being a


distressed purchase, such a small difference is not generally enough in real terms to provide a catalyst for change. However, once the difference rises to 5.5% for high energy usage businesses, it equates to well over £1000 on the bottom line so becomes far more worthwhile,” comments Tormollen.


Energy Audit


Unsure of your current and future energy usage?


Excessive subsidies for fossil


fuel power plants The UK Capacity Market scheme, long touted as one of the key mechanisms to achieve net zero, is dominated by subsidies for fossil fuel generation, according to a report from Aurora Energy Research. These subsidies are entirely funded through a levy on energy bills. Contracts worth around £20bn have been contracted through the Capacity Market since 2015 and the vast majority of these funds (worth over £12.5bn, around 60% of the total) have been awarded to date to fossil fuel plants. In contrast, only a quarter has been allocated to clean flexibility solutions, such as energy storage systems,


demand management and interconnectors. The Capacity Market provides long term contracts to


companies that can provide either dispatchable power capacity or guaranteed reductions on demand. Contracts are awarded through competitive auctions in a bid to ensure the lowest possible price for secured capacity. However, critics have long argued the way the market is


structured favours fossil fuel power plants over cleaner and potentially lower cost forms of capacity. Campaigners have accused the scheme of providing excessive subsidies to fossil fuel power plants, including highly carbon intensive assets, such as arrays of diesel generators. Experts argue the market needs to provide more support in bringing clean energy generation assets online.


NEWS UPDATE


Our energy audit will fully inform you of your current high usage areas and show options to reduce your energy consumption.


All for a fixed fee of: £2,400.00 + VAT


For further details, scan the QR Code or visit: bem-services.co.uk/fixed-fee-services/energy-audit/


What is included:


An Energy Audit Report will cover heating and cooling systems, the building fabric, domestic hot water production and any other internal processes that affects the energy usage of the building, as well as a thermal model.


The report will contain:


Costed options for improvements to the building fabric, new and existing domestic hot water, heating & cooling systems and renewable energy production systems such as Solar PV or Air Source Heat Pump.


EIBI | FEBRUARY 2025


It will also contain an executive summary of recommendations for the options detailed.


What we require:


We will require, previous heating bills, building layout drawings and technical information of existing systems prior to our work starting.


Scope:


The report will cover, single buildings up to 2,000 meter square or collective sites (a number of buildings) up to a total area of 2,000 meter square.


We do not cover buildings or sites outside the UK. Site visit costs are additional and to be agreed prior to the site visit.


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Not sure about what you need?


Feel free to arrange a call with us, and we’ll be happy to discuss your requirements in detail.


BEM Services Suite 1, No. 11 Salisbury Street, Long Eaton, Derbyshire NG10 1BA


T: 0115 7788227 E: info@bem-services.co.uk W: bem-services.co.uk


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