I’m sure it doesn’t surprise many people to know that energy costs are rising in Ireland. The recent Bord Gais Energy Index shows that July saw the biggest jump in several months. The index rose 8% in July to 144. One of the reasons for the rise in Irish energy costs is the weakening Euro. While your guess is a good as mine as to what the Euro is going to do over the coming months, it is hard for me to see it strengthening any time soon.
Keep in mind that it isn’t just heating oil and diesel that are affected by this Euro trend. Most electricity in Ireland is produced by burning natural gas. Much of our gas comes from the UK and so the weaker Euro vs the British Pound is increasing the cost of electricity. Some additional factors can be found in this article.
What action can you take as a result of this information? My first suggestion would be to schedule an Auditel Business Health Check. This is an examination of all your business overheads expenditures, including electricity, by a qualified Auditel consultant using our unique Total Cost of Purchase approach. It takes into account both the direct and indirect costs associated with making effective cost management decisions. This service, coupled with our performance driven contingency fee model means that our service can be totally self funding.
When was the last time you reviewed your energy costs? If there is any way to reduce your energy costs and improve your bottom line, Auditel will take the time to find it for you!