News stories of the month


CARBON MASTERS WARNS CUT ENERGY USAGE NOW OR SEE BILLS DOUBLE


eading carbon management consultancy Carbon Masters is warning the UK’s public bodies and top businesses that failure to take immediate action on their emissions risks a hefty tax charge starting in 2012.


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Using a CRC financial impacts model developed by Carbon Masters they have calculated the financial impact of the Government’s Carbon Reduction Commitment Energy Efficiency Scheme for a range of CRC registered companies based on published carbon emissions data. Councils and other public bodies will be hard hit, with Edinburgh City Council and Glasgow University projected to pay £990,000 and £325,000 respectively, based on their reported emissions. And Aberdeen City Council, which has struggled financially in recent years, is facing tax of £800,000 on top of projected energy costs of £9.9 million. Even a company like Tesco with an exemplary record in reducing their


carbon emissions could be hit by a tax bill in 2012 of up to £21.37 million if they fail to further reduce their energy related emissions, while RBS is projected to pay £5.39 million in carbon tax. Following changes to the Carbon Reduction Commitment Energy Efficiency Scheme outlined in the Spending Review, from April 2012 organisations using above 6000MWh of electricity per year will be required to pay the treasury £12 per tonne of CO2


emitted. The new tax is a departure from the previous Government’s plans to introduce a payment-recycling scheme, where organisations would be refunded the majority of their emissions payments if they reduced their overall energy usage. Kevin Houston, Director and co- founder of Carbon Masters, says: “The decision to move away from a payment recycling scheme to a mandatory flat rate tax will have a huge impact on around 5,000 UK


First Chartered Energy Manager T


he Energy Institute (EI) has announced the election of its first Chartered Energy


Manager – Owen Everall CEng MEI, who is the Site Engineering and Facilities Manager for Syngenta. The EI launched this new grade of registration earlier in the year to support and recognise professional practitioners who are responsible for managing energy to reduce use, increase efficiency and reduce carbon emissions on a daily basis. Owen Everall CEng MEI, says, “Energy is an important part of my job. As an engineer, I have a real passion for reducing energy consumption across the site and improving efficiency. Energy Management offers a really interesting element to my role and I


42| SUSTAINABLE FM | DECEMBER 2010/JANUARY 2011


am continually motivated to solve energy related problems. The EI’s new grade of Chartered Energy Manager completely sums up what I do in the Energy Management arena. It’s about managing energy on-site and more closely reflects and recognises the work undertaken to deliver sustainable energy savings. This new grade perfectly encapsulates the skills sets and the contribution made by such professionals. Its value should be recognised as an expert function within the engineering community and I hope that the professionalism associated with the award will make more practitioners aspire to be recognised in this way.” Applications for the Chartered Energy Manager title are assessed by


means of a professional development review and interview. Maintenance of the title is by means of reporting on continuous professional development. The Chartered Energy Manager title is uniquely available through the Energy Institute and was approved in 2010 by the Privy Council. It was created with two main aims in mind – to raise the standards and qualifications available to Energy Managers through a common set of job role competences; and to raise the profile of the valuable work carried out by Energy Managers and the critical role they have in reducing emissions and combating climate change. Further information is available at www.energyinst.org


companies, particularly as it was unexpected and buried deep in the Comprehensive Spending Review. “We have calculated that the likely minimum tax charge for qualifying businesses will be £42,000. When you add this cost to rising energy prices, there is a huge incentive for CFO’s to seek reductions in their companies’ energy usage. They could see their total bill for electricity, gas and carbon tax almost double over the next five years, if their consumption increases by a relatively modest 5% pa. Every 1 Tonne of carbon saved by taking energy saving actions reduces their total energy and carbon bill by around £178.


“CRC payments do not come into effect until April 2012 so there is still ample time for these businesses to introduce a carbon reduction strategy to cut their costs and become more competitive in the process.” www.carbonmasters.co.uk


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