Start-ups should never let a good energy crisis go to waste

Start-ups should never let a good energy crisis go to waste

For most start-up businesses, energy is generally not a first-order concern. It accounts for a relatively small share of their expenses, especially when compared with salaries and materials. But, for successful businesses, that can and must change.

The costs of electricity, natural gas and petrol were already rising last year, as supply failed to keep up with post-pandemic demand. Prices then briefly surged to record levels, supercharged by Russia’s attack on Ukraine.

While most EU countries and the UK have acted to soften the blow of higher pricesfor residential customers, far fewer are protecting businesses.

Even before the war, Bank of America analysts were predicting that European businesses would see their electricity costs rise by as much as 70 per cent in 2022, and gas prices would double.

That kind of cost increase should get management’s attention. Relatively new and fast-growing companies are used to making adjustments to their business models every day, and finding better energy choices must now rise up the agenda.

“Companies don’t think about their energy as much as they should, and it can be really volatile,” says Andrew Winston, sustainability consultant and co-author of Net Positive: How Courageous Companies Thrive by Giving More Than They Take. “If it is a