More than 60% of Poland’s energy comes from coal. These are figures that do not inspire optimism, especially in the context of impending electricity price increases. Freezing rates in 2024 is only a temporary relief – in 2025 we can expect electricity price increases of 15-25%. How to prepare your company for these challenges? Today you’ll learn the answers to the questions.
Electricity prices have a direct impact on every aspect of our lives. Electricity drives businesses, homes, services. Its increase affects companies’ operating costs, profitability and product prices. Are you ready to face it?
The cost of electricity is more than just the bills you pay. Did you know that electricity affects the price of almost every good and service? A barber shop, a bakery, a factory – each of these places needs electricity. When energy becomes more expensive, these costs are passed on to consumers.
Little by little, more and more households are relying solely on electricity. Electricity powers our appliances, heats our homes, heats our water, and is even becoming the main source of energy in the kitchen. We are moving away from gas and coal, making us even more dependent on electricity.
So we pay for energy twice – first in our homes and then by buying products and services. Can anything be done about it?
The increase in energy prices is the result of many factors. Global trends, the political situation, and ecology all play a major role. Poland still relies on coal, which is getting more and more expensive, and energy production from this resource involves paying expensive emission allowances.
In 2023, Poland’s energy sources looked as follows:
These figures show how far we have to go. The energy transition is costly, and its effects are being felt by all of us.
Energy prices have a direct impact on inflation. The cost of electricity is about 13% of the total inflation basket in Poland. If electricity prices rise by 20%, inflation could jump by about 2.5%. This means that not only energy bills, but also the prices of all products and services will go up.
Should the government continue to freeze energy prices? On the one hand, this solution protects us from sharp increases, but on the other hand, it is costly for the budget. It is estimated that maintaining the price freeze at the 2024 level would consume about 4.5 billion zlotys. That’s the equivalent of 10% of the 800+ program’s budget.
Postponing the problem until the future may bring even greater difficulties. It is better to face higher costs now than to wait for a bigger shock in a few years.
Rising energy prices are a challenge for every industry. Here are three key issues:
Do you know how much of your company’s costs is electricity? If not, it’s time to check it out.
Let’s get down to specifics. Here are 5 proven strategies:
1. increase energy efficiency
Simple changes can save a lot of money. Consider whether your appliances and installations are energy efficient. Replacing old light bulbs with LEDs, upgrading machinery or insulating buildings are investments that can pay off quickly.
Example: Replacing lighting systems with LEDs can reduce lighting costs by up to 50%.
2 Investing in renewable energy sources
Photovoltaic panels, wind turbines and even small biogas plants can all reduce dependence on external energy suppliers. Many companies are opting for their own energy sources, taking advantage of available subsidies and rebates.
Do you have the ability to install panels on the roof of your office or plant?
3. energy consumption monitoring
Do you know which devices in your company consume the most electricity? Energy management systems (EMS) allow you to track consumption in real time and identify areas for optimization. It is worth investing in such solutions, especially in energy-intensive companies.
4 Renegotiate contracts with energy suppliers
Check the terms of your contract with your energy supplier. Maybe it’s worth renegotiating rates or switching suppliers? Comparing offers from different companies can result in significant savings.
5. strategic budget planning
Include rising energy costs in your 2025 budget. Think about a long-term energy and digital transformation strategy. Analyze the market and be ready to react quickly.
Rising energy prices are a challenge, but with the right measures, you can protect your business from the negative effects. Invest in energy efficiency, renewable energy sources and monitoring systems. Review your contract with your electricity supplier and prepare a budget for next year.
You’ll see more about new technologies to grow your business and production facility on my YouTube channel – Digitalize.co.uk!
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