Dealers warned of 'ticking time bomb' of rising energy costs

A specialist energy solutions company has warned dealers they are sitting on a ‘ticking time bomb’ if they fail to embrace efficiency in the fight against rising energy costs.

Journey Energy Solutions said many dealers are likely to be unprepared for a sharp rise in operational costs and will need to find ways to reduce their electricity bills and meet corporate net zero emissions ambitions.

Taking swift action on energy efficiency investments is the best way to mitigate the hit of inevitable price rises, the company said.

Its comments come just weeks after retailers told AM that they would be forced to "turn off the lights" at showrooms in a bid to tackle the impact of rising energy costs. 

Darren Riva, chief executive officer of Journey Energy Solutions, said: “Businesses of all sizes are being warned of inevitable energy price rises in the coming months, with no sign of any government assistance.

“This is a major challenge; it will have a significant impact on operational costs. For cost-sensitive businesses, inaction is not an option.

“The integration of energy efficient and low-carbon technologies has the potential for very significant cost savings. Any cuts to operational costs can be returned directly to the bottom line.”

Journey, which counts Rygor Mercedes-Benz UK amongst its customers, has developed a service-based model that helps deliver low carbon and energy efficient technologies such as LED lighting and EV charging, without the need for upfront capital expenditure.

It said replacing existing outdated lamps with energy efficient LEDs can results in savings of up to 60%, rising to 80% when intelligent lighting controls are utilised.

Swansway Group has invested more than £300,000 to replace all the light bulbs across its business with LED units.

The move is expected to reduce carbon emissions from the company by 150 tonnes over a five-year period and will contribute to cost savings of around £1m.

To help dealers on the path to energy savings and carbon reduction, Journey has launched a free, downloadable guide, ‘The Journey to net zero - How to cut costs, save energy and deliver decarbonisation: a guide for motor dealers’.