Power outages may not be super common in the UK, but they always seem to happen in the worst possible moments, interrupting or completely halting organisational processes. Even a seemingly short loss of electricity can have a ripple effect through business operations, costing you a lot more than you might realise.
Downtime costs add up
The financial impact of a power outage, of course, depends on the size and nature of the business. However, the figures can be pretty shocking. Previous studies show that UK businesses lost an estimated £3.7 billion in the year of 2023, just from internet outages alone. These numbers suggest that, for smaller businesses, an hour of downtime could cost up to £1000, while for larger commercial organisations the number could be much higher.
But, where do such numbers come from? The most immediate cost of a power outage is the stop of sales, if the website, POS software or payment equipment stopped working and a business simply cannot take on orders. In addition to that, you have the costs of idle staff, who are paid the same wage regardless, missed deadlines, which could introduce costly fines, and the administrative burden of getting systems back online (e.g. hiring an electrician or an IT professional).
Beyond the immediate financial hit, a power outage creates a number of secondary problems. Lost productivity is often the most visible: employees unable to work, customers unable to be served, processes that need to be restarted from scratch once power resumes… For companies reliant on IT systems, an unexpected shutdown can also mean lost or corrupted data and hours of recovery work for IT teams. There’s the risk of physical equipment damage too, such as voltage spikes and surges, which could shorten the lifespan or outright destroy it.
So, even though businesses can request compensation for energy supply issues, according to Ofgem, it will not cover anywhere near the downtime costs that may add up.
Which sectors are most at risk?
Some sectors feel the pain of power disruption much more than others. Retailers or hospitality businesses, for example, depend on continuous power for POS systems, refrigeration and security, meaning even brief outages can lead to spoiled stock and lost sales. Manufacturing businesses face halted production lines, damaged work-in-progress and costly restart procedures. Offices may seem less exposed, but lost connectivity and inaccessible cloud systems will disrupt communications and affect clients too. Data centres, in particular, have huge risks, as a single outage can affect thousands of businesses and customers simultaneously.
Power protection solutions
Given the scale of potential losses, prevention is almost always more cost-effective than recovery. Uninterruptible power supply (UPS) systems are one of the most efficient ways to build energy resilience and ensure business continuity even during an outage. These power protection solutions work essentially by providing a buffer against outages and voltage fluctuations, giving equipment time to shut down safely and allowing critical operations to continue working uninterrupted, using backup power.
There is a range of UPS options available to UK businesses of all sizes, from compact units for individual server racks to large-scale systems supporting entire facilities. Leading European manufacturers such as Salicru specialise in providing tailored solutions for your unique needs, whether it’s an office or a manufacturing plant.
Weighing up the investment
Acquiring a UPS system is a considerable investment, particularly for smaller businesses. However, the question to ask yourself here is not whether you can afford to invest in one, but rather whether you can afford to be without it if a power outage happens tomorrow.