Around two thirds of company directors surveyed by The Energyst believe that power prices will rise by around 10% in 2016.
That prediction follows a relatively benign 2015 in terms of wholesale prices.
Early respondents* to the annual Director’s Report have indicated that they are equipped to deal with spikier prices as a result of tight margins and changes to the balancing and settlements regime.
Three quarters of respondents said they had a plan in place to reduce exposure to energy price or supply shocks, and most of those firms have an in house energy manager.
Big lighting spend
Virtually all of the early respondents said they planned to implement energy efficiency/demand reduction measures within the next 12 months. Three quarters of those directors plan to implement lighting. HVAC, building controls, onsite generation and behavioural change also figure in the plans of around 40% of respondents.
The survey, sent to 2,500 company directors, will form the basis of the 2016 Director’s Report, published early January. It also covers demand response, procurement, liquidity and asks directors to give their views of broker/TPI transparency and service.
Directors also give their views on what business taxes changes the treasury should make, and what they believe would help decarbonise the economy at lowest cost.
Take the survey
The survey takes 5-10 minutes to complete. All those that take part will receive a free copy of the report, which provides a valuable insight into the state of the market – from the market – and where businesses see the best bang for their buck.
Click here to take the survey.
*The survey was emailed to 2,563 directors on 16/11/15. This article is based on initial findings from a low sample. Figures may change significantly from full sample.
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Why do two thirds of company directors surveyed by The Energyst believe that power prices will rise by around 10% in 2016?
We didn’t ask that question. But some energy firms have suggested increases due to non-wholesale costs will start to become more noticeable from next financial year. See this story. Although those predictions are for rises of about 5% a year out to 2020.
If company directors want to beat the power rises they should look at installing their own heat and power biomass/chp units. The tariffs are very attractive and ROI is approx 5-7 years, with fully funded options available. firstname.lastname@example.org
Philip Smith Lawrence