ENERGY
CRC Scheme brings many advantages for the enterprising Property Manager
Bobby Collinson, Managing Director, Power Efficiency I
t is now becoming clear that the impact of the CRC Energy Efficiency Scheme will affect thousands of businesses in the UK, and not just the top energy users. If your organisation has at least one half hourly electricity meter, then you will be obliged to register for the scheme.
There has been plenty of media coverage on the issue but for the record, these are the facts: • For half hourly electricity consumption below 3 million kWh in 2008 – you will be required to register and list all half hourly meters running in 2008
• For electricity consumption from 3 million and less than 6 million kWh – you will be required to register and list all half hourly meters running in 2008, along with their overall consumption The initial calculation was that 6,000 organisations would be involved, but according to a report recently in the Financial Times, up to 30,000 businesses and public sector organisations will be covered by the scheme, and they need to complete their initial registration by the end of September 2010.
Amongst organisations that previously considered themselves too small to be included this has caused consternation, but if we look more closely at the CRC Scheme, there are significant positives. Granted, at a time when organisations are focused on driving their businesses out of recession, the requirement to spend time on CRC is at best a distraction, and in many cases there will also be an impact on cashflow. However, as a result of the structure of the scheme, there are various aspects that are particularly beneficial to forward thinking property and energy managers. The first is the league table of the full participants on the Scheme – the 6,000 heaviest energy users. This will recognise organisations that have performed well in terms of reducing their carbon emissions
and embarrass those that have not by placing them at the bottom. The top performers will be rewarded with an increased re-payment, and this will be funded from the penalties imposed on those that have not performed well – providing strong social responsibility and financial incentives to improve. The second benefit is that the scheme helps businesses to focus on reducing energy consumption and costs. In the UK we have an opportunity to gain recognition on the world stage for our skills in implementing and maintaining excellent energy management. Of course, CRC is only a small part of energy management, but even the most elementary of changes can result in cost savings of 10%, which for large organisations can mean many thousands of pounds annually. At Power Efficiency we are committed to helping our clients save money whilst implementing ethical energy management solutions. Over Christmas, for example, we encouraged companies to switch off all non-essential machinery, heating and lighting and we calculated that over the 11 day Christmas holiday period a company with a 10,000 square metre fully air conditioned office building could realise a saving of £5,500 on its energy bills.
This is where involvement in the CRC scheme has major advantages. It is putting carbon reduction on the boardroom agenda, providing property and energy managers with an opportunity to force a significant change in corporate energy use supported by senior management.
No board of directors would welcome its organisation being positioned at the bottom of what will be a very public carbon reduction league table, particularly when, without incurring any capital expenditure, it can actually reduce its energy use and save money as well. Property managers always have to balance cost efficiency with maintaining
comfortable working
conditions, but studies have shown that good energy
management actually creates a much better
environment. The key to achieving the right balance is about optimising the environment and working with employees to bring about energy savings without compromising their conditions. Most new buildings are constructed well, and this will lend itself to implementing straightforward alterations, but for all property managers the question will be the same: have we made enough operational changes to realise a 10% saving in energy? And even if the answer is yes, there is likely to be a lot more that can be done.
There is time too, to work out a strategy for implementing energy reduction over the long term. The first year of the scheme will be used for gathering data, so a company’s energy reduction activities will not register on the league table other than installation of meters and carbon trust scheme accreditation. Finally there is the important issue of reputational impact. It is increasingly important that a company’s brand is seen by its stakeholders and its customers, as a ‘green brand’. The most obvious mechanism for measuring a company against its competitors on this issue will be via the carbon reduction league table. So, a strategy for highlighting and exploiting success needs to be implemented, but equally companies should anticipate and be prepared for any failing that the league table will show. It is vital to carry out the necessary changes to realise a noticeable reduction in energy use, but having done this, it is equally crucial to make sure you talk about your success and be seen as a business of tomorrow.
www.powerefficiency.co.uk
SUSTAINABLE FM | JUNE 2010
|37
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 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64