Average energy costs for business users increased by 3.3% during the first quarter of 2013, latest data from the Lorien Energy Index (LEI) reveals. It also highlights a 10.2% increase since the beginning of 2012.
The Lorien Energy Index, which is produced by Lorien Engineering Solutions [Lorien] monitors the overall cost of energy for business users. It enables companies of all sizes to make sense of their current energy consumption and look at ways they can make savings in the future, by being energy efficient and utilising low carbon and renewable technologies to boost energy security.
Total UK dependency on fossil fuels was 88.3% in the first quarter of 2013. Total energy production has decreased by 10.4% since quarter two in 2012, but consumption is up by 4.3%.
Oliver Jenkins, sustainability business development manager at Lorien commented: “The increases in total energy consumption, price increases and dependency on fossil fuels highlights that reducing consumption alone will not hedge against volatile energy markets and price increases. Instead, when analysing the data, businesses need to consider where appropriate generating their own energy to off-set the future instability in both price and availability”.
Lorien Engineering Solutions has recently become part of GP Strategies Corporation, a global performance improvement solutions provider of training, eLearning solutions, management consulting and engineering services. The acquisition of Lorien Engineering Solutions adds to GP Strategies’ growing coverage of the sustainability sector.
Paul Nokes, director, GP Strategies said: “The quarter one figures confirm the forecasted upward trend in energy costs for business users. Energy costs are off the bottom line and should be central to cost saving initiatives in any business. These results indicate that efficiency alone is not enough to counter these rising costs and that financial payback models should focus on forecasted costs when looking at the feasibility of low carbon and renewable energy projects. The growing debate over the medium term security of energy supplies in the UK is predicted to have growing impact on commercial energy choices.”