Energy management is important for your business because it has become a core company competency that extends beyond managing costs and energy consumption. For many, it has become not only a means to compete but also a tool for creating value.
How Energy Management Became Important
In the past, companies viewed energy as a cost of doing business. At its best, it was an accepted expense with little value aside from keeping the lights on. But today in deregulated markets, a sound energy management strategy is one tool in achieving greater operational efficiency. It’s simple really. Better energy management results in a lower cost of production, which increases net revenue. A must in our hyper-competitive global market.
Furthermore, energy management not only reduces operating expenses but aids in being lean and flexible by allowing organizations to better plan for the future and respond to the markets if an unexpected shift occurs. This is important given the global volatility in the energy markets. Businesses need to be planning ahead to properly hedge against increasing costs while remaining agile enough to take advantage of positive market conditions.
Finally, an optimized energy management strategy can create new forms of value through corporate social responsibility (CSR) that leads to positive consumer perceptions. While less quantifiable, CSR has been recognized over the past decade as an increasingly important factor in earning and maintaining the trust of buyers.
Echoing that, a Deloitte Resources 2017 study found that “[m]ore than eight in 10 agree that their company’s view of energy procurement is shifting from merely a cost to an opportunity for reducing risk, improving resilience and creating new value.”
Tips for Energy Management
Since energy management is starting to extend beyond the traditional cost-cutting or control mechanisms of the past, we recommend businesses start thinking the importance of energy management with these tips in mind.
Energy Management is Cultural
It starts with people, from the C-suite down to the shop floor. Work on training your organization to appreciate why energy management is important not only to the business but to their roles as well.
Conduct an Audit
Taking stock of your business and how it uses energy is the first step to a more proactive and value-driven approach to energy management. Start small by addressing excess consumption to control costs then use those savings to plan for larger retrofits that can increase CSR.
Use Energy Management Software
Energy software can help businesses better understand their energy assets across different types of energy sources and geographic areas. It is the ideal solution for any business, particularly larger organizations that need help collecting all of their energy data in one place.
Our application, UtilityModule (UM) can help you do just that. UtilityModule allows you to view all of your energy data in an easy-to-use energy dashboard. This technology can help you uncover valuable insights into your energy usage and cost, as well as suggest a future energy budget for your business. As a result, you will be able to confidently plan your future year energy budgets and work with your broker to hedge against rising costs while acting on lower costs in the market.
If you would like to try UtilityModule, please contact UM Tech for a free demonstration and see how our software can improve your energy management strategy.