Energy increases: to reverse the trend in SMEs, a change is needed
The energy crisis has highlighted all the uncertainties linked to the energy market which hit Italian small and medium-sized businesses hard.
Today, SMEs have to face new challenges that put the resilience of their business to the test, mainly due to the dynamics with which energy traders operate on the market, which generate instability and economic difficulties for companies.
To reverse this trend , a change is needed in SMEs , especially focusing on the energy transition. In addition, it is equally important to know the necessary financial tools and the most effective solutions to protect your company from increased energy bills.
To understand how to best deal with this situation, we interviewed Tommaso Bordini , author of " Energy Intelligence: the definitive guide to free yourself from the slavery of energy increases in the post-Covid era ", the book that shows how to transform a crisis into an opportunity through renewable energy and energy efficiency.
Entrepreneur and founder of Valore Energia , with Energy Intelligence Bordini guides the reader step by step in discovering the best solutions for saving money and building a more environmentally friendly business .
How do energy traders operate and what are the consequences of the energy market on Italian SMEs?
Energy traders operate in the energy market with low margins and also have to face a condition of general uncertainty and high competitiveness due to the liberalization of the sector.
The consequences of this situation for small and medium-sized businesses emerged forcefully during the energy crisis in the post-Covid era, when energy suppliers had to face the new dynamics of an increasingly unstable and uncertain market .
First, payment difficulties and insolvencies of some companies have caused considerable economic damage to energy traders, and the offer of fixed-price contracts to customers has worsened the balance sheets of many energy companies.
Operators have therefore had to adopt the necessary countermeasures to protect their business, such as requesting greater guarantees from companies, especially the most energy-intensive ones, the transition from fixed price tariffs to variable price tariffs and unilateral modifications for contracts that have become unsustainable.
This has led to a series of negative effects for Italian SMEs, generating a climate of uncertainty about the future of the business and forcing companies to use company resources to cover rising energy costs and provide more solid financial guarantees.
Upon renewal or expiration of old contracts, many SMEs have had to face a cost per kilowatt higher than expected, a situation that is often unsustainable for small and medium-sized businesses and aggravated by poorly informed and unconscious choices dictated by widespread energy illiteracy.
How can SMEs protect themselves from energy market uncertainty and what opportunities does the energy transition offer?
First of all, companies must inform themselves well and understand the mechanisms that regulate the functioning of the energy market, a fundamental prerequisite for being able to make the right decisions in this area.
After that, we must understand that every crisis also represents an opportunity : naturally, as I also illustrated in my book, Energy Intelligence , it is necessary to know which are the most effective tools to reduce spending on energy supply and improve one's financial position .
Today, energetically redeveloping buildings and investing in renewable energy should no longer be an option but an imperative, otherwise you risk compromising your business by allocating too many resources to paying bills. Furthermore, depending exclusively on the market exposes companies to excessive volatility: a condition that does not allow for long-term planning , making the business less competitive and more vulnerable to energy crises as well as to the dynamics imposed by energy traders.
We must therefore address the problem, for example considering that today the purchase value of a photovoltaic system is equal to the expense of a 3.5 year energy supply: it is therefore an investment that can be recovered quickly and start generating value in few years.
The energy transition also offers advantages in terms of reputation and corporate image, in fact by reducing the environmental impact it is possible to benefit from important benefits on customers' perception of the brand which reflect positively on the business.
How can small and medium-sized businesses address the change in energy management?
In my book I addressed the topic of energy at 360°, thanks to the long experience acquired in this sector and the work undertaken with Valore Energia. My goal was not only to clearly explain how the energy sector works and what the energy myths are, but also to provide concrete solutions with which small and medium-sized businesses can counteract increases in energy bills and reduce the uncertainty related to energy costs.
In detail, in the book it is possible to discover low-impact but incredibly effective solutions for energy saving, the characteristics and advantages of energy communities , often underestimated by SMEs, and all the intervention strategies proposed by Valore Energia, such as conscious contracts , crowdfunding and securing companies.
Furthermore, those who decide to purchase the book will be able to learn about five case studies taken from the work followed by Valore Energia , to concretely understand how the installation of photovoltaic systems and conscious energy efficiency interventions can also represent an advantageous choice for small and medium-sized businesses .
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The article Energy increases: a change is needed to reverse the trend in SMEs comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/rincari-energetici-per-invertire-la-tendenza-nelle-pmi-serve-un-cambiamento/ on Mon, 25 Sep 2023 22:01:00 +0000.