Lorien Energy Index increased 250% in 6 years

Regularly published data from DECC, which list average prices for non-domestic consumers, showed a spike in Q4 last year (2011) with average prices against the previous quarter seeing some industrial consumers realise a 7% increase for electricity, along with 20% for gas. For the year, the overall increase in prices was around 6% for electricity and 19% for gas.

Indicators such as Brent crude and wholesale energy prices were volatile over the year, with the average price of Brent crude being $111/barrel - its highest value in real and nominal terms since 1860, and an increase of 13% on the previous ‘high’ reached in 2008. Current prices (Q1 2012) are in excess of $120/barrel.

In addition to the market influence on energy costs, larger business that fall under the Climate Change Levy (CCL) are facing a further 33% increase in the carbon price floor in 2013, to £9.55/tonne, further adding to cost pressure on industry.

This continues the trend over recent years.  From a base of 1.75 in early 2006, the Lorien Energy Index in Q1 2012 stood at 4.4 - an increase of over 250%.

Tom Jordan, Sustainability Engineer at Lorien comments, “The price of energy, and the impact of CCL, is having a significant effect on industry, with an expectation is for costs to continue to rise at a steady rate over the longer term, with short term fluctuations both up and down. 

“At Lorien we are seeing a fast-growing realisation amongst our clients that ‘status quo’ is not an acceptable strategy when it comes to the energy intensity and energy provision within their operations.

“We are seeing an increasing demand for advice on the viability of technologies delivering sustainable energy (including ‘waste to wealth’), and general energy-saving and carbon reduction solutions. Energy prices are of course central to investment decisions in this area. In response, we have brought together key energy cost data to create the Lorien Energy Index, providing a common reference point”.

The Lorien Energy Index (LEI) monitors the overall cost of energy for business users, and it enables companies of all sizes to make sense of their current fuel use and look at ways they can make considerable savings in the future, possibly through the use of energy efficient technologies, and making productive use of waste streams and other resources.

Renewable Waste and Energy is a fast-growing business stream for Lorien, with expertise spanning Waste Recycling Facilities, Waste Transfer Stations, Biogas, Biomass Heating, Water and Ground Source Heat Pumps, Composting, and Combined Heat and Power. Lorien’s sustainability team is experienced in dealing with the requirements of the brewing, food and drinks manufacturing, life sciences, heritage and municipal waste sectors.

Lorien Energy Index - Click graph:

Lorien Sustainability Skills