Home Business News The average business warned they are now using more energy than ever before

The average business warned they are now using more energy than ever before

by Amy Johnson LLB Finance Reporter
16th Jan 24 7:49 am

POWWR, a respected energy software provider, has revealed that the average UK business now consumes over 28 MwH of energy a year.

This is 6.5% more than last year and enough to power a Premier League football stadium.

This additional energy usage means that the average UK business now pays £5265 for its energy per annum.

However, the amount varies wildly from region to region. Whereas businesses in South Wales pay on average £6792 and those in London £6178, businesses in the North East of England and those in North Scotland only pay £3752 and £3799 respectively for their energy.

This is based on over 300,000 data points the company analysed for its Quarterly Energy Barometer. The report provides unprecedented insight into how much energy UK businesses are consuming, and what they are paying for it.

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The Energy Barometer Report shows that the average energy contract is now only 22 months for UK businesses, significantly less than the 29 months it was in 2020 – pointing to continued market uncertainty.

“It has been a tough few years for UK businesses. Already reeling from a global pandemic, double digit inflation and increasing geopolitical tensions, rising energy prices directly impact profitability for companies large and small,” said, Matt Tormollen, CEO at POWWR.

“Plus, there is a fear that recent increases to the price cap from Ofgem will put even more financial pressure on UK businesses at the coldest time of the year.”

The energy sector remains extraordinarily complex, with numerous factors influencing market rates and energy consumption. However, the POWWR Energy Barometer Report proves that there is light on the horizon for UK businesses and that prices are likely to go down due to the increased competition between brokers and suppliers, and partly due to improvements in technology that enable organisations to find better deals.

“Either way, it is important that suppliers continue to help UK businesses reduce their energy consumption by providing them with tools, insights, and advice to manage their energy use more efficiently. This will both help the planet, and their bottom line,” added Tormollen.

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