The hidden energy costs draining your business
For most organisations, energy bills feel unavoidable, driven by the market and largely out of their control. But when you look more closely, a different picture often emerges. A surprising amount of energy spend isn’t inevitable at all. It’s the result of small inefficiencies that build up over time.
It’s not just about the price you pay
Procurement tends to get the most attention, but in reality, the biggest cost drivers are often internal. Working with clients across a range of sectors, we see three areas coming up again and again:
1. Limited visibility
Without clear, timely data, it’s difficult to see:
- where energy is being wasted;
- which sites or assets are underperforming; or
- when costs are being driven up unnecessarily.
If you can’t see how energy is being used, it’s almost impossible to control its cost.
2. Operations and energy out of sync
It’s common to find:
- equipment running for longer than needed;
- heating or cooling working against itself; and/or
- different sites operating with inconsistent settings.
Each issue seems small, but together they add up. And they are difficult to spot without the right data.
Here's a recent example of how data can change the game: we helped a life sciences company move from “meters everywhere, data nowhere” to a centralised, repeatable approach to utility data. This made it possible for them to:
- identify underperforming systems;
- align operations with actual demand; and
- target the highest-impact improvements.
3. Unmanaged peaks
Short spikes in energy use can disproportionately increase costs through:
- demand charges; and
- network tariffs.
Often, these peaks aren’t even visible until the bill arrives.
How much difference can this make?
In practice, organisations can often reduce 10–15% of energy spend just by addressing these kinds of inefficiencies. And importantly, many of these improvements don’t require major investment, just better insight and control.
For example, moving from fragmented data to a centralised platform enabled Arla to improve visibility and deliver ongoing energy optimisation across its operations.
Why this is getting more attention
In the context of ongoing cost pressures, these “hidden” inefficiencies are becoming harder to ignore.
They affect:
- margins;
- operational performance; and
- progress towards sustainability targets.
This is why more organisations are starting to treat energy performance as something that needs continuous attention, not just occasional review.
Connecting to the bigger picture
Clearly, cost and carbon aren’t separate challenges. Many of the same actions that reduce wasted energy also reduce emissions, making efficiency one of the strongest levers for both.
Our report, Is the business case for climate action broken?, explores how organisations are turning these efficiency gains into measurable financial returns.
It brings together insights from more than 30 sustainability leaders, along with commentary and advice from BIP.Verco experts. The aim is to outline why climate business cases succeed or fail, equipping you to make yours more compelling and inspiring you with winning examples.
See what other organisations are achieving
The takeaway
Most businesses aren’t overpaying for energy because they lack options. They’re overpaying because the opportunity isn’t visible. Once you can see it, it becomes much easier to act.
Experts on the topic
Q: How can businesses reduce energy costs quickly?
A: By optimising contracts, reducing waste, and managing peak demand, businesses can cut energy costs within 90 days.
Q: How much can energy management save?
A: Most organisations can reduce energy spend by 10–15% through improved visibility and optimisation.