"With energy costs overall not expected to increase dramatically in the short to medium term, we see this relative stability as a strategic opportunity for businesses to focus on reducing energy intensity, and investing in low carbon and renewable means of generation," states Lorien's sustainability consultant Tom Jordan.
Energy prices followed the seasonal trend, increasing by 9% between the third and fourth quarters of 2014, remaining 3% lower than for the same period the previous year, latest data from the Lorien Energy Index (LEI) reveals.
For a typical industrial fuel mix, Q4 2013 to Q4 2014 saw relatively small fluctuations in electricity prices, with a higher level of volatility in gas, explains Jordan.
Against this backdrop of falling fossil fuel prices, Lorien Engineering Solutions, which produces the Energy Index, anticipates stability and moderate growth in the short term, enabling industry to invest savings in efficiency measures and alternative renewable, low-carbon technologies now.
"Recent developments suggest a US flip to aggressive exporting of LNG (liquefied natural gas), beginning as soon as early 2016," advises Jordan.
"Expectations are that this could release the stranglehold of Russian production within Europe. Whilst gas prices on the wholesale UK markets are down 16% on 12 months ago, gas storage is 20% full – compared with 52% in 2014 – due to buyers offloading supplies in expectation of discounted gas becoming available later in the year," he explains.
"It really is a no-brainer for businesses to invest savings now to enhance their resilience to future increases, provide energy security and realise a competitive advantage over the longer term."