Research shows offices could see their bills cut by 57% under the energy price cap this winter

Research shows offices could see their bills cut by 57% under the energy price cap this winter
Research shows offices could see their bills cut by 57% under the energy price cap this winter

Following the rollout of the energy bill relief program, offices are set to benefit from a potential bill reduction of up to 57% this month compared to if they had to pay wholesale electricity prices. expected energy.

This is according to the overview of energy bills, conducted by artificial intelligence and analytics leader SAS, which analyzed ONS data from over 1.6 million buildings used by businesses to understand how much gas and electricity each sector consumed.

Following the new scheme, offices are currently expected to see an average annual bill per building of £13,710, compared to the expected £37,880 had prices remained at expected winter wholesale prices.

As businesses anticipate their first bill from the program by six months, SAS compared businesses’ average energy consumption and wholesale price previously forecast for winter 2022 with the government’s current non-domestic price cap, to understand how aid will affect different industries.

The government said wholesale prices could have reached £600 MWh for electricity and £180 MWh for gas this winter. The new regime provides for fixed base prices of £211 per MWh for electricity and £75 per MWh for gas.

Research has shown that public sector-focused businesses – healthcare, emergency services and education – will benefit the most from the program.

With all industries looking set to receive bills that are, on average, more than half of what would otherwise be expected, the retail sector has seen one of the most potential bill reductions. weak, amid calls to support the main street to help reduce product costs. .

Under the new scheme, emergency services are likely to spend the most per building on energy – averaging £90,250. This is perhaps unsurprising considering that a reliable power supply can be critical in saving lives for disaster response companies, police forces, and fire and rescue services.

Industries with the greatest potential for reducing their energy bill:

Industry

Energy cost per building with new price cap (£)

Energy cost per building with estimated wholesale price (£)

Potential for bill reduction per building (£)

% Potential Bill Reduction

Health

53,190

138,460

85,270

62%

Education and schools

50,750

133,500

82,750

61%

Emergency services

90 250

240,000

149,750

60%

Arts and hobbies

19,490

52 110

32,610

60%

Hospitality

10,060

27,050

16,990

59%

Factories

54,650

147,620

92,960

59%

Desks

13,710

37,880

24,160

57%

Detail

7,730

21,370

13,640

57%

Storage

17,270

47,890

30,620

56%

David Ferguson, Risk Management Specialist at SAS Uk & Ireland, said: “The energy crisis has dominated the news in recent months, and for good reason, both consumers and businesses are worried about how to deal with rising costs. It is understandable that some companies have been – and potentially still are – worried that they could be paying upwards of £100,000 extra a year for energy at a time when budgets are already tight.

“The level of price reductions will vary between companies, depending on their type of contract and their situation. Our research highlights how much businesses could be spending on energy – and how important it is for all businesses to use technology to reduce unnecessary energy consumption wherever possible. »

The energy bill reduction program

The Energy Bill Relief Scheme is available to those on a non-domestic contract, including:

  • companies
  • voluntary sector organizations, such as charities
  • public sector organizations such as schools, hospitals and nursing homes

which are:

  • on existing fixed-price contracts that were concluded on or after December 1, 2021
  • signature of new fixed-price contracts
  • on deemed/out-of-contract or variable rates
  • on flexible purchase agreements or similar

The scheme is intended to be broad in application, but there may be very limited exclusions

Reductions are currently applied to energy consumption between October 1, 2022 and March 31, 2023.


Webinar: How to control the flow of people and packages through your facility – November 23 at 11 a.m.

According to the Pitney Bowes Parcel Shipping Index, global parcel volume is expected to double over the next five years, with the UK posting the largest increase in carrier revenue among the 13 countries in the index.

Along with a huge increase in package volume and expense, post-pandemic adoption of hybrid work models means FMs must find ways to allow staff to book/host collaborative meetings in available workspaces and find offices, offices and parking spaces. using automation and data capture to enable site governance.

Yet a recent survey conducted by FMJ in partnership with Pitney Bowes found that 20% of grantees still use manual, paper-based visitor systems, which falls short of their top priority: maintaining a safe and operational environment.

This overwhelming reliance on paper-based systems causes many bottlenecks for responders, resulting in inefficiencies in recording and tracking packages and people entering the organization.

In this webinar, Gary Abbott Director of Business Development and Stuart Bushaway, Manager of Dealer Operations and FM Relations at Pitney Bowes, will present key findings from the two surveys and what it could mean for FMs. This will be followed by a discussion, chaired by Sara Bean, FMJ Editor-in-Chief, including Wayne Young – Facilities Manager, Just Eat Takeaway.com & Simi Gandhi – WhitakerStrategic Technology Director, Connected Workspace, Mitie.

Register for the webinar here.

. search shows offices might see their bills reduced under ceiling prices energy this winter

. Research shows offices bills cut energy price cap winter

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