Energy prices fell by 4.8% during 2015, mainly due to a lower gas prices, according to the latest data from the Lorien Energy Index (LEI).
The data for the first and final quarters of 2015, which tracks the overall cost of energy for business users, shows prices declined by 7.7% compared to the same period in 2014.
Burton-based Lorien Engineering Solutions, which produces the Energy Index, said gas prices fell 22% in the final quarter of 2015 compared to the same period a year earlier. Electricity prices remained relatively static.
When shown together, these lines demonstrate that while prices are low, there is an opportunity for companies to invest in energy efficiency, low carbon and renewable technologies. This can position organisations to deal with changing conditions and provide enhanced business resilience over the longer term.
Lorien’s sustainability consultant Tom Jordan said:
“It isn’t an easy task to make forecasts on energy prices at the moment. Bring up any internet money news section, and you will see a plethora of stories each proclaiming gains and falls in the oil price, as the market remains volatile.
“Organisations are seeing a changing landscape slowly unfolding. Business resilience efforts must now include planning for scenarios such as extreme weather disruption, changes to carbon taxes, tightening legislation and longer term uncertainty over base energy costs to the business.”
The Lorien Energy Index monitors the overall cost of energy for business users. It enables companies of all sizes to make sense of their current energy consumption and look at ways they can make savings in the future, by being energy efficient and utilising low carbon and renewable technologies to boost energy security.