The Rising Cost of Staying Cool

Historically, UK business energy strategies were built around the ‘winter peak.’ However, as heatwaves become more intense, the demand for HVAC (Heating, Ventilation, and Air Conditioning) systems has skyrocketed. Air conditioning units are notorious energy consumers; according to some estimates, cooling can account for as much as 30-40% of a building’s total energy usage during the peak of summer.

Unlike heating, which often relies on gas, cooling is almost exclusively powered by electricity. With the volatility of the UK electricity market, businesses that haven’t secured a strategic procurement contract may find themselves exposed to high ‘out-of-contract’ rates or expensive variable tariffs just when their demand is at its highest.

The Productivity Link

The importance of effective cooling isn’t just about comfort—it’s about the bottom line. Research consistently shows that office productivity dips significantly when indoor temperatures rise above 24°C. Excessive heat leads to fatigue, reduced concentration, and increased absenteeism.

Providing a temperature-controlled environment is essential for maintaining a high-performing workforce. However, the cost of providing that environment shouldn’t jeopardise your profit margins.

Why Procurement Matters More Than Ever

Business energy procurement is the process of strategically sourcing and purchasing an energy supply. For offices and workplaces, this shouldn’t be a ‘set and forget’ task. Here is why a dedicated procurement strategy is vital for the summer months:

1. Price Hedging and Stability

The energy market is sensitive to demand. As businesses across the country crank up their cooling systems, wholesale electricity prices can spike. By working with a consultant like Cibus Energy to secure a fixed-price contract in advance, your business is shielded from these seasonal fluctuations, ensuring your summer bills remain predictable.

2. Evaluating Flexible vs. Fixed Contracts

For larger organisations, a flexible procurement strategy allows you to buy energy in ‘tranches,’ taking advantage of market dips. If the forecast suggests a milder summer or if wholesale prices drop unexpectedly, a flexible contract allows you to capitalise on those lower rates.

3. Optimising for Efficiency

Procurement isn’t just about the unit price; it’s about understanding how and when you use energy. A comprehensive energy audit—often the first step in a professional procurement strategy—can identify if your cooling systems are inefficient or if you are being charged for ‘peak-time’ usage that could be mitigated.

4. Supporting Sustainability Goals

Modern workplaces are under increasing pressure to meet ESG (Environmental, Social, and Governance) targets. Summer cooling is carbon-intensive. Through strategic procurement, Cibus Energy can help your business transition to REGO-backed (Renewable Energy Guarantees of Origin) green tariffs, ensuring that your cooling systems are powered by 100% renewable sources.