Accountancy Insights: Can Businesses Mitigate Rising Energy Prices? Plus AI in Audit, UK GAAP

Why It Matters

Failing to act on energy contracts or AI risk can erode margins and expose firms to regulatory penalties, directly impacting profitability and reputation.

Key Takeaways

• Lock in long‑term energy contracts before renewal windows open
• Prioritize on‑site solar to reduce grid dependence and costs
• Engage professional advisors; avoid cold‑call energy brokers at all costs
• FRC AI audit guidance outlines risks: output, misuse, methodology
• Smaller firms find new AI guidance dense; need practical support

Summary

The episode tackled two pressing issues for accountants: how firms can shield themselves from soaring global energy prices and the new Financial Reporting Council (FRC) guidance on managing generative‑AI risk in audit work.

Conway explained that UK gas prices have jumped roughly 40 % in the past three months, hitting short‑term contracts hardest. He urged companies to lock in supply agreements two to four years out and to consider on‑site solar, which typically delivers a 4‑7 year payback for owners of suitable roofs. He also warned that waiting until the April or October renewal windows leaves businesses at the mercy of volatile markets.

Ian Pay broke down the FRC’s AI framework, flagging three risk buckets – deficient output, misuse of output, and non‑compliant methodology – and illustrated how even small audit firms can stumble over the dense guidance. Both guests stressed the need for specialist partners rather than cold‑call brokers or generic AI toolkits.

For CFOs and audit leaders, the take‑away is clear: proactive energy procurement and credible advisory support are now board‑level priorities, while robust AI governance will be essential to meet regulatory expectations and protect audit quality.

Original Description

Everyone’s talking about energy costs at the moment. Greenfields Energy Group’s co-founder LIAM CONWAY walks us through the energy impacts of the Iran War and outlines the best ways for businesses to protect themselves from global energy shocks.   

Elsewhere on the episode, we discuss new guidance from the Financial Reporting Council on managing the risks for auditors when it comes to AI adoption; and a quick update on UKGAAP: the challenges that the changes pose for smaller entities

Links

• How higher oil prices will change Britain -https://www.thetimes.com/article/f754197a-859b-460b-8ad0-1e36fc878ff1

• FRC – AI in Audit: Generative and Agentic AI guidance -https://www.frc.org.uk/library/standards-codes-policy/audit-assurance-and-ethics/guidance/ai-in-audit/

• ICAEW UK GAAP hub - https://www.icaew.com/technical/corporate-reporting/uk-gaap/changes-to-uk-gaap

• ICAEW: Changes to UK GAAP Conference - https://www.icaew.com/learning-and-development/events/corporate-reporting-conference

• ICAEW podcasts - https://www.icaew.com/insights/podcast

Host

Philippa Lamb

Guests

• Liam Conway, Co-Founder, Greenfield Energy Group

• Ian Pay, Head of Data Analytics, ICAEW

• Fahad Asgar, Technical Manager, Corporate Reporting, ICAEW 

Producer

Natalie Chisholm

Series Lead

Mark Rowland

Episode first published: 6 May

Podcast recorded: 29 April