# Utility and Energy Costs to Rise

- Link: https://greenlivingguy.com/2016/06/utility-and-energy-costs-to-rise/
- Published: 2016-06-08T14:45:07-04:00
- Author: greenlivingguy

## **Getting the Most Out of Utilities**

By: IBISWorld Procurement Research Analyst, Ian Buchanan

Residential utility prices have been on the rise in recent years. Whereas the commercial
sector has enjoyed declining utility costs. Especially due in part to a drop in 
the [price of natural gas](https://greenlivingguy.com/2005/11/scooter-sales-soar-as-gas-prices-rise-maybe-they-should-have-thought-about-electric-scooters-more/).

In addition, the increased use of extraction techniques such as hydraulic fracturing.
For it has all caused the supply of natural gas to exceed demand, and competition
from alternative energy production methods. Especially like solar and hydroelectric
production has been on the rise. As a result, natural gas and electricity prices
have dropped. Despite this brief period of declining utility costs, rising demand
is forecast to pressure the price of natural gas upward once again during the three
years to 2019.

So to guard against forecast growth in the price of utilities, business operators
should seek methods of reducing their utility bills. That’s including [management control systems](https://greenlivingguy.com/2018/04/osram-installs-energy-efficient-lighting-systems-in-many-tennessee-state-facilities-including-wrs-tennessee-tower-supreme-court/).
As well as energy and utility consulting services. I mean as soon as possible.

![To deal with utility costs](https://i0.wp.com/greenlivingguy.com/wp-content/uploads/
2019/03/img_7406.jpg?resize=300%2C199&quality=52&ssl=1)

Cox Enterprises has been awarded LEED(R) Gold certification for its 578,000 square
foot office building that is located in Sandy Springs, Ga. The new building is the
second facility on Cox Enterprises’ corporate campus to achieve LEED Gold certification.(
PRNewsFoto/Cox Enterprises, Inc.)

### **Cutting Down Energy & Utility Bills**

One effective and increasingly popular method of trimming utility costs is purchasing
and installing an** [energy management control system. ](https://www.procurementiq.com/market-intelligence-united-states/energy-intelligence-software/)**
That’s to monitor the consumption of energy at a facility. In addition, it collects
data reflecting the energy usage of various systems. For that’s such as lighting,
heating and ventilation systems. Armed with this data, building operators can better
manage their energy usage and, thus, cut costs. More advanced systems can even make
the necessary adjustments to optimize energy usage and cost automatically.

Alternatively, many users in the market are [moving towards cloud-based energy](https://greenlivingguy.com/2007/06/comprehensive-energy-package-moves-to-senate-floor/)
management software. For there known as energy intelligence software. Especially
which monitors energy usage and helps operators optimize. More importantly on how
and when they use energy.

Due to rising demand from businesses and expanding nonresidential construction activity,
the price of energy management control systems has been rising. More notably at 
an estimated annualized rate of 2.1% during the three years to 2016. Fortunately
for buyers, IBISWorld forecasts prices to increase at a slower average annual rate
of 0.9% during the three years to 2019. 

#### Energy and Utility Consultants

Businesses can also use **[energy and utility consultants](https://www.procurementiq.com/market-intelligence-united-states/energy-utility-consulting-services/)**
to help manage their utility expenditure. These consultants provide many of the 
same benefits that an energy management control system does. They can assess a client’s
facility and monitor its energy usage to determine where cost savings can be achieved.
While the end result of procuring these services is generally the same as using 
energy management control systems, consultants can tailor their services to each
particular business’s needs, allowing some operators to achieve a greater return
on investment when hiring an experienced service provider. Additionally, a consultant
will help with decision making, whereas an energy management control system leaves
buyers to determine the most appropriate course of action.

As with energy management control systems, rising demand and an increase in nonresidential
construction have driven prices for energy and utility consulting up. IBISWorld 
estimates that service prices have been rising at an average annual rate of 1.4%
during the three years to 2016. Because many government-based energy reduction incentive
programs have ended recently, however, demand for energy and utility consulting 
services is expected to taper off slightly throughout the next three years, resulting
in suppressed price growth. As such, IBISWorld forecasts the price of these services
to rise at a slower annualized rate of 0.8% in the three years to 2019.

#### Expected Rise in Utility Costs

Because the expected rise in the price of utilities could drive up businesses’ operating
costs, operators may stand to gain from investing in methods of reducing energy 
and utility consumption sooner rather than later. The prices of both energy management
control systems and energy and utility consulting services are projected to rise
slowly in the next three years, so buyers can assess both options to choose which
best suits their needs and can provide the greatest return on investment.

Source: IBISWorld Inc
[www.ibisworld.com/procurement](https://www.procurementiq.com/market-intelligence-united-states/)