Rising Energy costs - PwC’s 10 point plan for business
What next for business? Actions for business in response to high energy costs
Publication of the details of the Energy Bills Relief Scheme (EBRS) by the Government on 21 September 2022 will be welcomed by non-domestic energy customers. Businesses will benefit from the six month price support, which will be backdated to run from October 2022 to March 2023.
There are a range of actions businesses can take to mitigate the impact of sustained high energy costs helping them to manage in the short term and understand and plan for the longer term strategic implications and we have set them out in our 10 point plan.
PwC's 10 point plan
Businesses will need to strike the right balance in their approach to the situation to identify the most appropriate combination of actions including passing through costs and targeting cost reductions in a way that maximises their value to the business. The actions will vary according to the sector the business operates in and the flexibility it has with respect to customers, supply chain or how it uses energy.
Our latest report reflects on the details of the EBRS announced by the government and focuses on the steps that businesses can take to address challenges around cost, financial sustainability and growth.
- Energy efficiency.
- Load shifting or reducing load
- Reviewing energy procurement strategy
- Invest in onsite generation such as solar PV
- Explore Corporate Power Purchase Agreements (PPA’s)
- Review portfolio margin
- Review cash, working capital and capital allocation
- Review sufficiency of existing financing facilities
- Review third-party spend and build supply chain resilience
- Leverage managed services, shift to cloud and accelerate
productivity
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