Thursday, 11 November 2010

Energy risks for business set to increase, reveals new white paper

An increase in financial, reputational and legislative risks associated with
business usage of energy means organisations need to put in place effective
plans now to reduce their exposure to future risks. This is the key finding
of a new white paper published today, Energy Risk Management for UK
Business, commissioned by npower from the London School of Economics.

The white paper follows statistics in the latest npower Business Energy
Index, which revealed that businesses rank energy as posing greater risk to
them than health and safety, credit and security. They scored energy 6 out
of 10 in terms of level of risk it poses; this was in contrast to the
highest risk which was legislation, scoring 6.7 out of 10.

To address this concern and to stress the importance of immediate action,
the white paper provides a guide to current energy risks and forecasts how
they will grow in the future. It concludes by urging businesses to ensure
energy is a board-level consideration and to control their exposure to risk
by working in a collaborative manner internally - by combining the energy
management and procurement processes.

The paper also looks at how the role of energy suppliers is changing. No
longer can they simply supply energy; they now need to help businesses to
manage their consumption and procure energy in as cost-effective way as
possible, to ensure their survival. It concludes by highlighting the role
that energy suppliers now need to play is as a consultant to help
organisations manage energy risks.

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