Businesses to face rising energy costs – no matter what
UK industry running scared
The London School of Economics carried out research recently on behalf of energy provider npower, which concluded that the cost of energy for businesses will continue to rise no matter what policy or fuel mix the UK adopts.
The report: Demanding Times for Energy in the UK examines four scenarios for the energy market and couldn’t find one where prices don’t go up. Scenarios included the UK’s current intent to use a balanced energy mix; Government backtracking on decarbonisation, which (it says) could spark a dash for gas; an investor shortfall due to a lack of faith in Government policy would prompt an even bigger leap in emissions versus current policy plans and the fourth scenario analysed the spiralling costs of carbon capture and storage, renewable energy costs rising and nuclear power being more expensive than expected. The report’s authors are reported as stating that prices look likely to rise in all scenarios and that it had been hard to find one in which they wouldn’t.
Although worrying, it’s understandable given the size of investment required to build an infrastructure to meet the demands of today - and tomorrow.
A survey of energy buyers (reported on energylivenews.com in November) stated that energy prices could sour by 60% over the next decade. Nine out of ten respondents expect wholesale prices to rise by 2021 to £80 per megawatt hour, which is more than 60% higher than current levels. The news site was accused of scaremongering by commentators on the article, one in particular pointed out that 60% over ten years is equivalent to a 5.4% rise per annum, which is only just a little over the current inflation rate.
No amount of alternative persuasion, however, could stop Lynemouth-based mining firm, Rio Tinto from planning to close its aluminium smelter in the town because of rising energy costs. Upcoming carbon legislation was blamed as a key factor behind the closure of the Northumberland factory, which employs 515 people.
Carbon floor price and scaremongering aside, business and industry is very concerned about rising energy costs and thus reducing energy usage. Modern UPS are designed to be as energy efficient as possible but they can also help because they make an ideal voltage optimiser and can help reduce the current drawn by downstream loads alongside stabilising voltage.
If you’d like more information on this or our range of energy efficient, eco UPS.