More than nine out of ten (93%) company directors plan to implement energy efficiency or demand response measures in 2016.
Surveyed by The Energyst ahead of the 2016 Directors’ Report, almost eight out of ten (79%) said that energy had become more of a strategic focus for their organisation over the past 12 months.
Around two thirds of those surveyed to date (68%) said they had a plan in place to reduce exposure to energy supply or price shocks.
While some industry commentators have predicted extreme supply shocks in the coming months, others believe the UK power system is robust enough to avoid blackouts despite thin generation margins. National Grid has consistently reiterated that it has the tools to cope. However, such slim margins, as well as changes to the UK’s balancing and settlement regime, will make the power market more volatile in 2016, brokers have warned. That means spikier prices.
As wholesale power costs now make up only around half of the total power bill, firms that can reduce demand permanently or dynamically in response to price signals will therefore save or earn more money.
Around a third of directors (36%) said their firms could be more flexible with power consumption, but only a small minority (11%) said they currently participate in demand response mechanisms.
Full findings of the survey, including the actions directors believe government should take to decarbonise the sector at lowest cost and which green tax changes would make them more competitive, will be published in the full Directors’ Report in January.
The survey is still open to company directors and senior management. Take it here. Those that take the 5-10 minute survey will receive a printed copy. The report will then be made available as a free download at thenergyst.com.
Figures in the final report may change with full survey data.