Volatility in the wholesale markets combined with rising non-commodity charges could force energy prices up by 50 per cent by 2020 compared to 2016 prices, according to figures from consultancy firm Inenco.
SSE has become the last of the Big Six to announce a price hike on its standard variable tariff meaning that two in five households will now be hit with a bill hike from April.
This would be one of the biggest hikes in nearly a decade. This year brings concerns over currency fluctuations caused by the outcome of Brexit and the Government Climate Change Levy to name a few.
Ken Warner, managing director at Energy Renewals, has been keeping customers within the serviced apartment sector informed of inevitable increases as far back as 2013. Since then, the upward trend for energy prices is on the rise and it appears that this trend is set to continue for the foreseeable future.
Over the past six months, prices have spiked at levels not seen for two years, with non-commodity costs (cost of distribution and transmitting energy) rising by 25 per cent.
A BBC News article from 2013 outlines the underinvestment that the infrastructure has suffered. The costs of upgrading this are now being felt by customers. The cost of delivery and distribution of the power make up around 40 per cent of the bill and by 2020, this is expected to be 60 per cent.
Energy Renewals have been running an energy efficiency programme for service apartment operators over last year and have seen savings of up to 30 per cent in some cases.
Over the past few years some forward thinking apartment operators have been combating rising prices with the use of energy efficiency technology.
Other than some low hanging fruit (lighting) Energy Renewals has been deploying a variety of smart technology to reduce and control energy spend within serviced apartments and aparthotels.
For more information, visit the website at info@energyrenewals.co.uk or contact the efficiency team on 01753 208125.
Businesswise Solutions
Businesswise Solutions managing director Frazer Durris said: “Hospitality businesses could reduce energy costs by up to 25 per cent if they implement a joined-up purchasing, management and energy efficiency strategy.
“In our experience, hoteliers who have a data driven, strategic plan in place, enjoy huge gains, particularly when helping to centralise data for group purchasing and management,” he added.
Businesswise Solutions have been evolving an energy solution which disrupts an old and stagnant market. The goal is to deliver digitally led, best in-class energy solutions to industrial and commercial markets and become an established leader in the sector.
Durris said: “We now have a trading capability that has been developed to meet the growing needs of current and future customers, and systems and technologies to enable seamless management of large, disparate data sets and our value-added solutions can help our clients gain a competitive advantage in an ever-changing energy landscape.
“We are helping hoteliers revolutionise their energy management strategies through the sophisticated use of new technology and big data solutions, combined with market first initiatives, such as our Hotel Energy Advisory Board,” he added.
The advisory board is made up of hotel industry professionals from some of the UK’s biggest brands and is chaired by the former chief executive of the British Hospitality Association, Ufi Ibrahim, a strategic leader with over 25 years’ experience in the hospitality, leisure and tourism industry.
The mission for Businesswise Solutions is to harness the resources and knowledge of the advisory board members to lead the sector in energy efficiency, innovation and carbon reduction.
However, Durris explained that it is not just about cost and operational advantage.
He said: “It’s about meeting a consumer shift towards a more sustainable future and enhancing the reputation of major hotel operators in that respect”.
For more information, visit the website at www.businesswisesolutions.co.uk.
WPO
WPO (Wind Prospect Operations) claims to be the leading independent renewable energy provider in France, the UK, Ireland and Sweden. It aims to be the number one choice for Europe’s renewable energy sector, by continuing to reduce the cost of energy while staying true to its core values of always being safe, reliable and fit-for-purpose.
WPO currently provide asset management and other tailored specialist services for over 300 wind and solar generation sites. This portfolio spans over 10 European countries.
In addition, the company offers a full range of technical, commercial, financial and corporate asset management services and delivers some or all of the following services on its portfolio of operating wind and solar assets throughout Europe:
- Health, safety and environmental management
- SCADA hosting and data management
- Continuous monitoring and operational control
- Site co-ordination
- Stakeholder & public relations management
- Commercial and contracts management
- Financial management and administration
- Debt facility management
- Insurance and claim management
- Directorship mandates
WPO also provides a range of specialist bespoke services for wind and solar assets to help its clients in the hospitality industry, including from hotels and serviced apartments. These are tailored to ensure that customers get the most out of their valuable assets, including:
- Technical due diligence
- Tendering
- Performance analysis
- Technical audits and inspections
- HSEQ audits & Inspections
- Power purchase aggregation services
- Insurance brokerage
Now, after a test phase lasting six weeks, WPO has reached the required technical maturity to blockchain green energy production so that the information can be used and shared simultaneously in one database. Five wind turbines spread over three sites in France have had their production certified by our blockchain, and it has just issued its 11,000th production certificate (GoCert). This represents the equivalent of 11 gigawatt hours certified, which is the average annual consumption of more than 2,300 French households.
This is a world first, and WPO will now look to deploy its blockchain in new wind and solar farms in France and abroad (Europe and China).
For more information, visit the WPO website at wpo.eu.
