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Energy Price Volatility: A Growing Concern for UK Organisations
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James Turnbull
- 2 minute read
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Read MoreIn the ever-evolving landscape of the UK’s energy sector, organisations are grappling with the challenges posed by energy price volatility. Recent surveys indicate a significant shift in how energy is perceived—not merely as an operational cost but as a central component of strategic planning. This change is largely driven by the increasing unpredictability of energy prices, which has become a pressing concern for many businesses.
The Impact on Business Confidence
Factors Contributing to Energy Price Volatility
Several elements contribute to the current instability in energy prices:
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Geopolitical Tensions
Global events, such as conflicts and trade disputes, have disrupted energy supply chains, leading to price surges.
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Transition to Renewable Energy:
While the shift towards renewable sources is essential for sustainability, it introduces variability due to the intermittent nature of sources like wind and solar power.
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Infrastructure Challenges
Delays and cancellations in energy infrastructure projects, such as offshore wind farms, have further strained the supply-demand balance.

Strategies for Organisations to Mitigate Risks
To navigate the complexities of energy price volatility, organisations can consider the following approaches:
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Energy Efficiency Initiatives
Implementing measures to reduce energy consumption can help mitigate the impact of price fluctuations.
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Diversification of Energy Sources
Exploring alternative energy options, including renewable sources, can provide more stable and predictable energy costs.
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Long-Term Energy Contracts
Securing fixed-rate energy contracts can offer protection against sudden price hikes.
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Investment in Energy Storage
Adopting energy storage solutions can enhance energy resilience and provide a buffer during peak pricing periods.