How to protect your business against rising electricity prices

Electricity has never been as expensive as it is today. As the comparison website Verivox reported at the end of 2021, the price of a kilowatt hour rose by almost twenty percent in just twelve months. The cap on the EEG levy will do little to change this development. On the contrary, experts expect prices to settle at a high level in the long term.

As a result, the issue is also becoming more and more of a problem for small and medium-sized companies. By their very nature, energy-intensive sectors such as mechanical engineering are particularly affected. But even small craft businesses are increasingly having to deal with the consequences of the price increase. Case in point: Jochen Brüggen from the Association of the Grain, Milling and Starch Industry is already warning of “serious consequences” for his sector.

Overall, around half of companies see their competitiveness in jeopardy, according to the findings of a recent DIHK study. The majority of companies are “unable to pass on the increased costs to their customers, or at least not in full.” Instead, necessary investments are being postponed while the search for ways out of the crisis continues.

Until recently, there was a direct and comparatively straightforward way for companies to squeeze their electricity bills: They bought energy on short notice when the market price was cheap. The so-called tranche model ensured a high degree of flexibility with comparatively low risk: Instead of fixing current electricity prices in long-term contracts, companies could take advantage of price fluctuations and thus save real money.

The problem: Right now, electricity is generally so expensive that the savings potential of tranche procurement is minimal. Admittedly, it makes just as little sense today to enter into long-term contracts at the current, exorbitant electricity prices. However, tranches do not offer a way out of the precarious situation either.

Indeed, it is much more promising for companies to focus on reducing energy consumption itself. The German Energy Agency (dena), for example, estimates that companies can save up to 30 percent of their energy consumption “through typical energy efficiency measures”. Among other things, it recommends “the use of highly efficient motors and modern technologies in lighting and information and communications technology (ICT) applications, as well as the energy optimization of compressed air, pumps and ventilation systems.” Craft enterprises can find further useful information in the “Energy efficiency in the craft sector” guide, which can be viewed online.

However, depending on the sector, the degree of modernization and the year of construction of your company buildings, there are clear limits to how much you can increase your company’s energy efficiency. In the final analysis, therefore, there is primarily one effective long-term method of reducing your electricity costs:

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Use your empty roof space now to protect your company against high energy prices in the long term. Discover our offers or arrange a consultation right away. We look forward to hearing from you!