COVER STORY

Carbon Reduction Commitment

EDF Energy’s online CRC reporting tool that allows them to work up a report to understand their consumption over different reporting peri- ods. In fact, this is a compulsory offering for energy firms from 2011, but EDF Energy has done it early. “We’ve also got our Energy Efficiency Toolkits and we’ve run seminars with business customers,” says Foot, pointing out that energy reduction doesn’t have to be expen- sive. “One of the easiest ways is to get staff involved. It’s low-cost, gets engagement and can result in a significant reduction in emissions.” Having installed AMR systems in-house, the company also offers a dedicated service to any businesses wishing to buy or rent equip- ment. “We’ve already had a healthy take up so far, particularly among retailers, water and telecoms firms,” says Bee. “AMR gives you visibility of consumption from those meters so you can treat the portfolio as a whole, not just focusing on the half-hourly metering.” Clients can then use EnergyView, EDF Energy’s online energy monitoring tool to see all their AMR meters and other half-hourly meters to witness what has historically been happening across the portfolio. “We used it internally. Very simple things can come out of AMR because it allows you to target things,” says Foot. For Michael Capper, the man responsible for delivering products and services around CRC for customers, the new regulation provides a perfect opportunity for energy companies to show clients how things have evolved. “We are classed as an energy company, so its not an old- fashioned ‘there’s your supply contract, thank you very much’ and we’ll send you a bill,” he says. “The marketplace has changed, customer expectation has changed and we have to change and keep up with it. Demand was there before, but the CRC has increased that demand.”

Guidance and advice

And the demand is coming from all different types of business; ones that have had energy managers for years and are already putting energy reduction plans in place; to firms that have never done anything like this before. And the likes of EDF Energy will offer guidance and advice on using less energy – a tough con- cept to get your head around. So, how does a business square the hole of encouraging its customers to buy less of its product? Capper says it’s all about sustainability. “We don’t want our customers to have loads and loads of energy. It’s much better for us to have more customers using less energy. It’s more sustain- able for us.” Bee agrees. “It’s not sustainable to just keep building power plants to meet increased demand; it’s better to reach a sustain- able position and move around that point.” “And by encouraging customers to use less,

ARE YOU READY FOR THE CRC?

Helen Woolston, group environment and climate change co-ordinator, Transport for London (TfL)

Are you happy with the finalised CRC regulation?

We would change: a) the level of bureau- cracy for providing the evidence pack, b) the lack of forecasting ability due to the future determination of price by auction, c) the lack of ability to determine where organisations will be in the league table. We’d also like to change the late decision to remove from scope unmetered supply measured on a passive or non-half- hourly basis – for example, street lighting. It presents a peverse incentive not to upgrade street lights to a dynamic system.

What energy management activity have you been doing?

We achieved the Carbon Trust Standard for two large sections of our business, and

ARE YOU READY FOR THE CRC?

Tom Wagland, environmental manager,

Ricoh UK

Are you happy with the finalised CRC regulation?

We’ve been taking proactive steps over the last ten years and already made significant reductions to reducing our environmental impacts. Naturally, having already managed the largest impacts, our activity in the future will continue to create reductions but they will be incremental, adding to what we have already done. This will see companies like us, with

strong performance, historically gaining lower league table positions, therefore not being recognised for the innovative steps we have already taken. It also questions the credibility of the league table. I would like to have seen an additional initial allowance for past performance in the form of an retrospective absolute

it makes them think about how much energy they will need for the next year,” adds Capper. “And if you understand what people are using, it places less stress on the National Grid.” With plans to reduce its carbon footprint by 80% by 2050, the UK has a long way to go before its economy is de-carbonised. Once avi- ation comes into EU ETS (in the third phase), around 40% of the UK’s greenhouse gas emis- sions will be covered by it. The CRC will cover a further 10% and, according to the

26 April 2010 ❘ Sustainab le Business

we’ll continue with our investment to retrofit 22 head offices and our Low Carbon Stations Programme, which is set- ting new standards for low carbon tech- niques and technologies at our Underground stations.

How will the CRC help or hinder your energy management activity?

The scheme has helped us to spread good practice across the business and to raise awareness with senior management.

metric where evidence exists about emissions in past years. This would highlight real reductions from implementa- tion started, allowing companies to be accurately acknowledged.

How will the CRC help or hinder your energy management activity?

We do not foresee a fundamental change in our activity and we remain committed to reduce our environmental impact by 88% by 2050 and by 30% in 2020.

Government, the scheme will save four million tonnes of CO2 a year by the end of the first period.

“Historically, we’ve had lots of different schemes that measure against different things, or different league tables that aren’t set by a gov- ernment criteria, and this has been confusing for the market,” says Hyland. “This is a grounding from everyone that will be measured, it will support financial investment in a structured way and help propel and guide future policies.” Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36