Just over one in five (23%) financial directors feels able to manage energy costs, with significantly greater numbers confident in managing their staff costs (84%), suppliers (41%) and equipment (37%), according to findings from a survey carried out by British Gas Business and Financial Director magazine.
Against a backdrop of economic uncertainty, this research suggests British businesses are overlooking effective cost saving measures including energy efficiency, to prioritise more complex and costly operational improvements.
Large numbers are planning tough measures in the coming year, including driving staff performance (71%), and cutting headcount and salaries (33%), rather than prioritising the potential 10-25 percent savings available from effective energy management. This is at a time when inflation and unemployment are at record highs.
Just 23% of the financial directors surveyed said they felt best able to manage their energy over the next 12 months, suggesting that many financial directors do not fully realise the potential savings simple efficiency measures can yield.
Indeed the research suggest many financial directors are struggling to effectively make the business case for an increased focus on energy efficiency, with 68% admitting that energy efficiency is discussed in board meetings very occasionally or hardly ever.
Two in five (39%) respondents recognise that the biggest challenge to controlling and managing energy use is the fact that energy management is simply not considered a business priority.
The findings also illustrate how a one dimensional view of energy management, adopted by most businesses could be costing them dear. More than two thirds (68%) of respondents state that a low contract price was by far the single most important thing they look for from their energy supplier. This however means that these businesses are potentially missing out on further costs savings by not taking a more strategic view of energy cost where both energy price and energy savings are considered together.
Only one in five businesses have a smart meter and so 80% are failing to take advantage of such a simple energy efficiency measure. Smart meters are considered the first step towards better energy management as they give real-time readings of energy usage and put an end to estimated bills.
Kanat Emiroglu, Managing Director of British Gas Business, said: "Our findings demonstrate the untapped opportunity to use energy management as a tool to control costs. This can start with the installation of smart meter technology that puts customers in control, identifies energy savings and helps change behaviour. With our energy experts and dedicated B2B engineer force we can then advise on the installation of a range of financially appropriate energy efficiency improvements and micro-generation technologies.
"From working with over 650,000 business and public sector customers we know that some simple energy efficiency measures can help save businesses at least 10 percent on their costs. Those that go a step further and make energy efficiency and the use of renewable technologies a business priority that is discussed at the top table level can achieve savings of 20-30 percent."
