When it is there; we don’t notice its presence; when it is gone business very literally grinds to a halt. Luckily we have an infrastructure system that ensures we run a very low risk of energy failure; and that system is designed to do everything it can to mend itself in the highly unlikely event of failure. We will not be expected to act to fix it. So our operational risk, from an energy delivery standpoint, is covered by a regulated system that we pay for in our homes, our offices and our factories.
The reason, at first glance, is cost. More specifically the reason is the rising cost. But this is not the whole truth, for if something is costly but predictable then a business or a person or a government can cut their cloth to fit; be this through budgeting, using less, redistributive policies, making a rationale choice between energy and R&D and so on and so forth. Energy prices however are the variable ingredient in the energy system, based upon the extremely volatile international supply markets for oil, natural gas and coal as well as the demand for that energy which is driven by vagaries in the weather, the Chinese economy, the Eurozone crisis and the Bank of England to name but a few. How these factors interact effects not only the financial performance of our business, but the economic wellbeing of every stakeholder in that business because energy is one of the few shared purchases we have between the world of industry & commerce and the personal home. Much as businesses rarely buy broccoli, trainers and childcare; similarly we rarely invest heavily in other people’s salaries, SQL Server databases and die casting machines for the home!
It does not, however, allow for market risk to be managed nor the stakeholders to leverage any cross benefits between their home and the workplace. The cost of energy needs to be addressed holistically. This means understanding the costs and managing each cost as is appropriate to the company’s or the individual’s objectives. It means understanding leverage, not only with suppliers but also with markets and how they operate. It means looking to consumption as well as to price in the drive for cost efficiencies. It means understanding and then managing the risks as you see them with all the tools available. At MyUtilityGenius we know that our view of risk may not be your view of risk. We also know that companies, and individuals, have a choice as to how they choose to be helped through the energy system to optimise their outcomes. We firmly believe that it is our responsibility to ensure that you understand all the choices that exist; that we provide expert and impartial support as you seek cheaper energy prices, or less volatile energy budgets, or year on year budget caps, or less consumption per unit of output, or lower prices for your employees, or greener carbon neutral energy solutions. Some of these are mutually exclusive, some of them are not; we will help you determine the right mix of solutions for you and your business and its people.