How a Comprehensive Energy Strategy Raises the Bar on Savings

Let’s start with the good news: businesses that boost their energy management programs get good results, according to our 2017 Energy Decision Makers Survey Report. Of the 300 business owners and energy decision-makers we surveyed across the U.S. and Canada, 94 percent are acting to reduce their energy use.  

That's an impressive number. Equally impressive is the financial gain their efforts netted. 85 percent of businesses said that their energy management practices lowered energy costs. And one-quarter successfully lowered energy costs between 11 percent to 20 percent. 

Given these results, it’s not surprising that companies are enhancing their commitment to energy efficiency. Many are taking actions to reduce energy usage, including:

• Using monitoring technology – 47 percent

• Promoting energy-saving practices – 65 percent

• Making energy-saving improvements – 68 percent

But there is still room for improvement: only 6 percent of businesses take advantage of all 6 energy management best practices. 

As effective as the aforementioned measures are, they are best instituted as part of a larger plan. Companies that look at the big picture with a Total Energy Management approach position themselves to best take advantage of cost savings opportunities.

The Other Half of the Equation

Total Energy Management requires more than just looking for ways to cut energy use, or “demand-side management.” It also requires analysis of the “supply side” – a business’s energy purchases. By integrating demand- and supply-side planning, companies can see opportunities that might not otherwise be apparent. 

Focusing on one side and not the other may leave money on the table. Perhaps you focus on getting a good price when you buy your energy supply. If you don’t use that energy efficiently, your price advantage may erode. Conversely, if you focus on energy efficiency without carefully managing energy purchases, you can lose the money that you saved. Our survey looked at six basic energy management best practices:

1. Work with a trusted independent energy supplier
2. Explore a range of energy products
3. Monitor the energy market for opportunities

Demand-Reduction Best Practices

1. Deploy energy monitoring technology
2. Optimize energy consumption schedules
3. Identify opportunities to increase energy efficiency

Change Ahead?

Businesses are not yet managing their energy supply holistically, but they are moving in the right direction. They do seem to understand that good energy management requires engagement on multiple fronts. Of survey respondents, 70 percent practice one or more supply-side and one or more demand-side tactic, and 32 percent practice two or more supply-side and two or more demand-side tactics. 

This year about one-third or more of businesses surveyed plan to:

What more can you do? Treat energy spending like an investment. Many factors affect the price your company pays for energy. Some you control; some you do not. By engaging in Total Energy Management, you can make the most out of the investment and raise the bar on energy savings.