EY: Energy procurement has become a key issue – fluctuating prices are affecting the competitiveness of more and more companies

Previously, energy was just one of many operating costs, but now it has become a key factor in corporate growth. Two-thirds of companies fear that they will not have access to the reliable power supply they need to expand in the future, while 64 percent say that rising and unpredictable energy prices are already hurting their profits and competitiveness. Accordingly, seven in ten leaders want to pay increased attention to electrification, reducing emissions and consciously managing costs in the next three years.

“It is estimated that by 2050, the demand for electricity will double, with three quarters of this generated by the corporate sector. It is critical that companies optimize their procurement processes at predictable prices and to what extent they will be able to cover their needs from sustainable energy sources,”

– said Krisztina Tarjányi, EY-Parthenon’s energy industry leader.

The growing demand for green energy is also putting increasing pressure on market players. In order to operate independently and flexibly, 70 percent of respondents plan to build their own energy generation solutions and battery storage. Although environmental protection is a key aspect, companies are looking for customized solutions that serve both the green transition and business goals.

“Energy has become a strategic asset. Companies that are able to transform their procurement and supply chains accordingly can gain a huge competitive advantage in their markets. However, this requires risk-taking, support from experienced advisors, cooperation and innovation on their part,” emphasizes Tamás Pazsiczky, head of the strategic consulting team at EY-Parthenon.