How can commercial and industrial businesses deal with energy market volatility?5 July 2022
Inflation, global conflicts, supply interruptions – all of these factors make the energy market one of the most volatile in the world. Unfortunately, business owners aren’t necessarily psychic when it comes to anticipating often chaotic energy price fluctuations. So, what are your options when energy becomes a resource your company desperately needs but can’t afford? Business experts recommend using the following strategies to stay ahead in a mercurial market:
Jonathan Merry, VP, and Co-Founder of Banklesstimes.com.
Future-proof energy supply procurement
The energy market is very volatile today, which is a major challenge. Here are tips to help your business deal with the issue, as long-term strategies to maintain production.
First, you should future-proof your energy supply procurement. This means having an eye on the market and having a long-term contract that cushions your energy demands. Maximize opportunities with the current energy procurement tenure, while communicating regularly with suppliers to protect the business against future shocks. Lock in on contracts when prices are still stable.
Also, monitor the energy market trends to capture the lows. To be effective, hire an energy consultant to audit your energy demands and provide recommendations for sustainable sources amid volatility.
If your energy procurement contract ends during the volatile periods, fall back to utilities until the prices stabilize again. In a high-cost market, future pricing is usually lower than the current rates.
Finally, your business might benefit from a volatile energy market by switching to green, or renewable energy sources. Although this investment is costly, it is for the long term and will steer your business to sustainability. The costs will eventually be cut due to saving on power bills, and also enhancing a better environment.
This is a crowdsourced article. Contributors’ statements do not necessarily reflect the opinion of this website, other people, businesses, or other contributors.
Others articles you might like
Industrial operations require massive amounts of energy, making energy expenses a significant part of operating costs. While no one likes...7 November 2023
The money you spend on energy each month decreases your profit margins and limits the funds available to invest in your business. And, th...26 October 2023
Energy costs can be one of your business's highest expenses, regardless of the sector or industry. Thankfully, they are also one of the most...10 October 2023