What impact will the pound’s crash have on the UK energy sector?
This week, the pound reached a record low against the USD and suffered similar fates with the EUR and Asian markets. Add to this to rising interest rates and it’s important we recognise the knock-on effects this will have, more specifically making it less feasible for businesses to take the necessary steps towards decarbonisation and energy cost savings.
The pound’s slump could result in energy equipment such as solar PV (which is priced in USD), seeing a considerable price rise. Lots of other energy efficiency and generation equipment are similarly priced in EUR or USD.
Economic uncertainty will also cause a rise in demand for the hedging of project costs, thus increasing the CapEx incurred when implementing on-site energy generation measures.
The fall in the exchange rates alongside rising interest rates could also mean businesses shift focus from energy expenditure to trying to maintain competitive pricing. For energy intensive manufacturers impacted by these factors, our Zero CapEx off-balance sheet structure could be a solution, where we can help deliver short and long-term cost savings without spending any capital.
If you would like to discuss how to implement energy efficiency measures, onsite generation or develop and roll-out a carbon reduction plan for your business, please contact David Kipling, CEO – On-Site Energy Ltd on 0151 271 0037 or email david@on-site.energy. You can also contact our Strategic Account Manager, David Jamieson, on 07990787876 or dj@on-site.energy.