We may have ridden out the worst of the coronavirus pandemic, but we are by no means out of the woods when it comes to economic uncertainty.
The cost of living is rising exponentially in 2022. Inflation in the UK has hit a 30 year high of 5.5%, and as a result, the Bank of England has raised interest rates for the second time in three months. Supply chain disruptions are expected to continue impacting various business sectors well into this year, further contributing to the deepening cost of living crisis.
On top of this, on 4 February 2022, Ofgem (the Office of Gas and Electricity Markets) announced a significant increase to energy tariff price caps as of April this year. This news follows a string of misfortune for the energy sector, including increased demand for gas reserves over the cold winter, unexpectedly low supply from pipelines, the consequent collapse of dozens of energy firms and the conflict between Russia and Ukraine.
The skyrocketing cost of energy could prove disastrous for many people that already struggle to heat, light and run their homes and businesses. So, now more than ever, it is crucial to invest in energy-saving measures to help curb the seemingly endless increases in the cost of living.
How will rising costs impact different business sectors?
Unfortunately, the inescapable truth that energy prices will rise dramatically in the coming months means that millions of people stand to lose out this year, with potentially devastating ramifications for individuals and businesses alike.
Household bills could increase by £693 per year on average, making choosing between ‘heating or eating’ a sad reality for thousands of families. Plus, many business owners fear that surging energy prices could cripple their operations as they struggle to keep up with spiralling running costs.
Increasing energy price caps may be especially troublesome for commercial building managers, particularly in the wake of hybrid working. Many organisations are already struggling to justify the cost of keeping an office running since expectations for remote working in the post-pandemic world came into play. Still, landlords will have no choice but to pass on these additional costs to tenants and risk even more empty properties on the books.
This news will also impact the hospitality sector, which has only recently begun recovering from pandemic-related economic slumps. The increased cost of utilities arrives amidst continued supply chain issues that have affected almost every industry over the past two years, caused by the pandemic, labour shortages and Brexit red tape over customs and trade processes. Room rates, running costs and service prices could all go up as a result.
Some larger corporate chains may be better equipped to absorb these additional costs. But for smaller, already struggling independents, these latest price hikes could be the final nail in the coffin after many months of financial struggles. So, as fixed contracts come to an end, every organisation must look for alternative ways to save money, such as reducing energy use in their buildings.
How can commercial and residential building managers curb energy costs?
As a massive proportion of energy consumption in the building sector is attributed to lighting — as much as 40% — optimising lighting efficiency should be a priority concern for business leaders.
Fortunately, building managers can expect to see a substantial increase in energy efficiency by making simple lighting upgrades and implementing advanced lighting technology in commercial and residential settings such as hotels, offices, and restaurants. For example, intelligent lighting controls for commercial buildings can reduce operating fees by 30 to 50%, according to Carbon Trust, and generate energy savings from 35 to 40%.
LEDs (light-emitting diodes) use up to 90% less energy than traditional incandescent bulbs and, when used in conjunction with lighting controls, grant users maximum control over energy usage. Luminaires can be fitted with motion sensors — or passive infrared sensors (PIRs) — to trigger lights only when a person is nearby. Presence and absence detection ensures no lights are needlessly left on, which is especially useful in offices and hotels, where desks, corridors and bedrooms are often unoccupied.
By providing scene-set automated lighting control, lighting designers create a positive experience for building occupants in a range of commercial and hospitality settings while operating with the lowest possible energy consumption. Lighting contractors can also fully integrate commercial lighting control systems with other building management systems to optimise energy management. In hotels, restaurants and office buildings, this allows building operators to ensure no leaky faucet or overworked air conditioning system is an undetected and costly source of waste.
TheisCraft’s range of intelligent lighting solutions is purpose-built to provide maximum energy savings in bespoke commercial and architectural applications. Contact us at 01252 560 800 or email info@theiscraft.co.uk to discuss your project with one of our lighting control specialists.