The Energy Market This Winter
Winters in the UK have always notoriously been reliant on energy, and with a number of storms this month already sending the temperature dropping; what is the outlook for energy this winter and how can businesses prepare?
Just as we were seeing markets begin to settle, the outbreak of conflict in the Middle East could send the economy once more into turmoil. Numerous situations across the globe are putting strain on a range of industries and the uncertainty of these conflicts could still provide a risk to the energy industry. Therefore, the Government will be planning and preparing for every eventuality. Meanwhile, as a business, you should focus on reducing your energy usage.
Energy Bill Discount Scheme Ending in March
The EBDS provided support with energy bills for customers in the UK, but this will stop at the end of March 2024. The scheme provided a discount on gas and electricity if wholesale prices were above the threshold. Although, in theory, March should mark the end of the winter weather and therefore signal the use of less energy to heat and light premises, the British weather often has other things in store.
It wasn’t too long ago that the Government threatened blackouts and power outages if electricity supply could not meet demand. Blackouts are put into place when there is a demand and supply imbalance, which can damage the grid, and disrupt essential services.
Although there has been little mention of blackouts in 2024, there is still a risk of these going ahead should the Government deem it necessary to counteract the decreasing supply caused by importing issues due to conflicts.
One way in which the country can prepare for uncertainty this winter is by collectively decreasing energy usage. Smart Heating technology allows precise control of temperature and heating, to help avoid overheating, heating empty spaces and heating after office hours.
Adjusting energy consumption means there is less demand on the grid, thus relieving pressure and ensuring that there is enough to go around.
Smart meters provide accurate readings to calculate bills, making it easier to adopt energy efficient choices as you can observe energy usage in real-time. Additionally, your energy usage amount is sent to energy suppliers, giving the grid a clearer picture of usage across the country. This, in turn, prevents power cuts by balancing the supply and demand.
Reducing Dependency on the Grid
Investing in renewable energy and switching suppliers can improve business resilience by reducing energy bills. By being more reliant on renewable energy, you can become energy independent meaning you could function entirely off-grid.
The future for winter 2024 is still undetermined, and whilst it may feel like it’s out of your control, there’s steps you can put into place to prepare for every possibility, whilst making positive changes for your business and the globe’s future.