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Business Energy Prices Fluctuations - How Do They Impact Business Operations and What Can Be Done to Mitigate These Risks?

In the ever-changing landscape of the energy market, the impact of energy prices on business operations is a topic that cannot be ignored. As the recent research by Ai Group highlights, the energy crisis is having a significant effect on Australian manufacturers, with many already suffering from rising energy costs.

The Impact of Energy Prices on Business Operations

According to the Ai Group's research, more than half of the 78 manufacturers contacted reported significant negative effects from rising energy prices. Only one in six said they could pass on these rising costs, meaning most businesses must absorb the cost elsewhere on their balance sheet. This situation is a significant drag that weakens the capacity of energy-intensive industries to invest in R&D or job creation.

Approximately one in five manufacturers expect to either cut production and/or employment in the next twelve months due to high energy prices. These insights underscore the pressing need for energy policy reforms that will restore affordability, stability, and security to national energy markets.

Mitigating the Risks: Energy Management and Energy Procurement

One solution to the challenge of managing rising energy prices lies in energy management. By optimising energy use, businesses can reduce their energy costs and improve their resilience to energy price fluctuations. This is where Energy Action's UtiliBox comes into play. UtiliBox is a comprehensive energy management solution that helps businesses understand their energy usage, identify inefficiencies, and implement cost-saving measures.

In addition to energy management, businesses can also benefit from energy procurement services. An energy broker can help businesses navigate the complex energy marketplace and secure the best energy contracts. Energy Action's AEX is a prime example of this, providing a transparent and competitive platform for businesses to procure energy.

The Role of Renewable Energy Procurement

In the quest for net zero, renewable energy procurement is becoming increasingly important. By sourcing energy from renewable sources, businesses can not only reduce their carbon footprint but also insulate themselves from the volatility of fossil fuel prices. Energy Action's Renewable Energy Procurement service can assist businesses in this regard, helping them make it cheaper and easier to transition to renewable energy.

Conclusion

In conclusion, while the impact of energy prices on business operations is significant, there are strategies that businesses can employ to mitigate these risks. Through effective energy management, strategic energy procurement, and a shift towards renewable energy, businesses can navigate the energy crisis and emerge stronger on the other side.

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