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Business, Financial, Financial Information, Financial Statements, Money, SME

npower Warns Outdated Financial Records Could Prolong Financial Instability

npower warns that despite evidence showing the UK economy is now out of recession, out of date financial records could prolong financial instability for many UK businesses. This is likely to impact credit ratings, reducing businesses’ access to finance and essential supplies, like energy.

power Warns Outdated Financial Records Could Prolong Financial Instability

Companies House records can be anything from 12 to 18 months out of date, which means that a company’s financial viability will be judged on its performance mid-recession, irrespective of how well it is doing now. Major credit rating agencies typically use these statutory accounts to assess financial health and, despite the scale of the problem, a large number of businesses have a lack of understanding on how their credit rating can impact their business.

Wayne Mitchell, head of corporate sales at npower, explained: “Poor credit ratings mean insurance companies are withdrawing credit insurance for businesses, a necessary guarantee that allows them to negotiate contracts with suppliers. This is impacting businesses’ access to essential supplies like energy and in the worst cases, could lead to tighter payment terms, restricted forward purchasing and even security deposits. In 2009 more than £100m worth of insurance was withdrawn for our business customers and we predict it will continue to be an issue for many businesses in 2010.

“That is why we are calling on businesses, energy suppliers and credit insurers to work together to avoid a credit crisis and prevent businesses facing challenges in securing energy supplies. There needs to be open dialogue and information sharing so that financial decisions are based on real-time data and are not solely reliant on the information held by Companies House.”

npower is also working closely with the Major Energy Users Council (MEUC) to reach businesses and bring to their attention the importance of carefully managing credit insurance.

Via EPR Network
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Business, Costs, Financial, Financial Information, Money, Profits

npower Urges Businesses To Act Now In Order To Profit From Emissions Reduction

Npower has commissioned a new white paper which reveals that businesses that make emissions reduction a board level priority can reap the rewards of a low carbon Britain.

The newly published white paper, UK Climate Policy for Business, was commissioned by npower from the London School of Economics.

The white paper comes on the back of research from npower, which revealed that many businesses are concerned that Government regulation to reduce carbon emissions will make the UK uncompetitive and add more cost than benefits.

To address this concern and to stress the potential financial reward of emission reduction, the white paper provides a guide to the UK’s emission reduction regulations and gives advice on the actions businesses need to undertake to succeed in a low carbon Britain. It also underlines that early adopters will be in the driving seat to make the most of a smaller carbon footprint.

The white paper stresses that the new regulatory instruments will not be without their complexities and that firms will have to learn new skills to ensure compliance with the rules, but that those that can do this early will be best placed to take advantage of the opportunities that might arise. It states carbon policy is specifically designed to reward firms that spot opportunities to reduce emissions, cut costs and adopt low-carbon processes.

“Reducing a firm’s carbon footprint can be a challenge, but the measures needed are often cash-flow positive, with investments recouped in a short period of time,” says Dr Samuel Fankhauser, author of the paper, principal research fellow at the Grantham Institute on Climate Change and the Environment at the London School of Economics and a member of the Committee on Climate Change.

“Reducing a carbon footprint is all about sound management and success will be determined by the priority businesses attach to emission reduction. Research has shown that well-managed firms tend to use less energy per unit of output than less well-run firms and are therefore better placed to succeed,” he adds.

David Titterton head of business development within energy services at npower adds: “Our aim in commissioning the white paper is to help businesses understand the current regulatory framework and point to the benefits firms can enjoy if they position emission reduction as central to their business goals. By doing so, we hope to ease the concerns that businesses clearly have.

“We understand that these are challenging times for businesses and many are focused on cost saving. Putting in place an energy management programme to reduce consumption can help manage costs, while also reducing emissions. Businesses doing this will be better placed to operate under the UK’s climate change policies and succeed in a Low Carbon Economy.”

The White Paper, UK Climate Policy for Business, can be downloaded at www.npower.com/businessenergy

 

About npower:
npower is one of the top energy suppliers to the UK business market, serving over 230,000 small to medium sized enterprise sites and around 15,000 industrial and commercial customers, with over 100,000 sites.

npower is dedicated to helping UK businesses use energy more efficiently and therefore spend less money on their bills. We aim to have a positive impact on the communities we serve and reduce our customers’ carbon footprint whilst always improving our service to our customers.

npower specialises in risk management solutions, including market-leading flexible energy purchasing, energy efficiency, and broader energy management functions, tailored to every size of business. npower customers include BT, Wembley Stadium plc, AstraZeneca and Sainsbury’s.

Via EPR Network
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