How to Protect the Corporate Bottom Line When Energy Prices Soar
Oil, gas and power prices are increasing on a daily basis. From weather to world events, inflation has skyrocketed and energy prices are soaring. This has created a market volatility that is directly impacting the wallets of consumers and the bottom lines of all size businesses.
Yet some companies are having little to no economic fallout because they were prepared for worst-case scenarios. In fact, instead of spending more during challenging weather conditions and upending world events, they have been able to save, and in some cases, actually generate revenue. When companies are armed with proactive capabilities, they can stay ahead of even the most unexpected challenges.
COMMENTARY
Like most successful achievements, the secret is in preparation, and when it comes to energy cost savings it is no different. Advanced technologies make it possible to identify complex issues leading to near accuracy in forecasting trends and data to overcome the turbulent times.
With proper infrastructure tools, soaring energy prices won’t lead to C-suite chaos, but rather a road of potential opportunities. By combining analysis and strategic business acumen, pre-negotiated utility contracts make a difference in minimizing and even avoiding financial loss as well as creating new revenue streams. Depending on utility company rules and state regulations, there are situations in which companies can sell power back to the grid, which develops a new positive cash flow adding seven digits, and in some cases, eight digits, to their bottom line.
With this type of potential, companies must become empowered to identify upstream and downstream impacts of short and long-term commodity price fluctuations. Now major corporations and SMBs can reduce energy costs and build strategies that will curb complex, labor-intensive, and error-prone processes to manage utilities profitably. The key is to make data capture and analysis a priority in terms of consumption, usage patterns, and pricing trends to effectively benchmark both budget and sustainability initiatives. This is especially critical when there are multiple locations or facilities with large square footage, from offices to big box retail, to educational and healthcare institutions, to hospitality venues to manufacturing plants, and more.
Then there is the growing importance for all companies to have enhanced marketability and financial growth on environmental, social, and governance, or ESG, compliance and renewable energy initiatives. It’s not enough to just add solar panels to the rooftop at headquarters, or launch employee energy savings tips across floors. There must be a seriousness of purpose toward establishing best practices so all energy resources can be monitored and measured.
It is possible to automate, manage, predict, and control cost-efficiency and sustainability through smart technology and the right infrastructure programs of various renewables. As far as C-suite and boardroom buy-in, now is the time to push for renewable energy programs, since they can now be measured for efficiency like never before.With today’s technology, whether using an outside provider or incorporating an internal operation, it is possible for every company to centrally manage, measure, analyze and store all of the utility data for all locations around the globe. Regardless of size or number of locations, every company is vulnerable to crippling energy costs, and must be tactically and purposefully proactive. Every company should become empowered on their power—the time is now!
—Kiki Dikmen is CEO of GetChoice!, a full-service energy procurement and utility management company with a nationwide presence. He can be reached on LinkedIn.