Consultants suggest businesses rethink how they use energy due to conflicts in the Red Sea, recommending ways to save money and deal with uncertainties.
Commercial energy and sustainability consultancy, Advantage Utilities, is advising businesses to reconsider their energy options in the wake of recent attacks impacting shipping routes in the Red Sea.
As freight companies divert around Africa to avoid the turmoil, Advantage Utilities suggests exploring energy optimisation technology to reduce consumption.
Additionally, businesses are encouraged to consider flexible procurement methods or longer-term energy contracts.
These approaches can help minimise exposure to fluctuations in wholesale energy prices and enhance sustainability through more efficient practices and equipment.
Advantage Utilities Chief Executive Officer Andrew Grover, cautioned that further price increases may still occur in the current energy market, stating: “Should the ongoing conflict escalate further, the negative bearing on world energy prices could be significant.
“Disruption lasting for two more weeks could increase prices further. This is at the forefront of our outlook as we head into 2024. Businesses should consider how they would react if further disruption does occur and exploring the benefit of securing longer term or flexible traded contracts should be considered as a means of mitigating further volatility in future.”