PUBLIC SECTOR SUSTAINABILITY A


s the public sector faces the reality of hard-hitting cuts requiring it to reduce budgets by 25 per cent year-on-year for the next four years,


keeping control of costs is key. Also, changes to the Carbon Reduction Commitment Energy Efficiency Scheme (CRC) at the end of 2010 mean many organisations may well be confused about what is required from them. In a survey to mark one year of the CRC, npower found that many organisations had strong opinions about the scheme and its future. Max Langford, head of corporate sales at npower, explains how adopting an integrated and effective energy management strategy can play an important role in helping the public sector to achieve budget reduction targets whilst overcoming 2011’s challenging economic and legislative climate.


Organisations in the public sector face numerous challenges, not least in relation to energy legislation and compliance. However, while it can be tempting to concentrate on the minutiae involved, focus should be on the bigger picture of making energy efficiency a key priority so that both emissions and costs are reduced. Implementing an integrated energy strategy – from procurement through to management – is key to achieving this.


THE CRC Following the Government’s Comprehensive Spending Review in October 2010 and subsequent amendments to the scheme, the CRC has caused much confusion and concern for major energy users, many of which are in the public sector. In response to this, the Department of Energy and Climate Change (DECC) has undertaken two consultations, seeking views from participants on how to simplify the scheme. Despite the inevitable uncertainty that lies ahead and regardless of the shape the scheme takes in the future; energy managers need to focus on the best practice behaviour the CRC was established to encourage. They should focus on reducing energy consumption and emissions, rather than the specific details of elements of the scheme. However, the changes to the scheme have meant feelings among organisations have become rather negative. npower conducted research among 70 professionals responsible for energy management in their organisations in March 2011 to mark the first anniversary of the CRC on 1 April. The research found that nearly half of organisations in the UK (45%) already want the scheme scrapped.


26


As well as wanting to see an end to the scheme, over a quarter (29%) of organisations said they do not think the CRC will help the UK meet its carbon reduction targets – one of its key aims. The Government proposed several changes to the scheme as part of October’s Comprehensive Spending Review. As a result, financial incentives which were originally included in the scheme were removed. Nearly half of organisations (43%) said they want financial incentives reintroduced and 40% of organisations said that now the CRC is effectively a tax. There is no incentive for them to reduce their carbon emissions – another important reason why the scheme was introduced in the first place. The results of our latest research reflect much of the feedback we receive on a daily basis from our customers. It is concerning that the changes to the CRC have resulted in organisations putting less priority on reducing emissions. This was one of the scheme’s key aims and is also crucial to help the UK achieve its emissions reduction targets.


Over half of organisations (54%) feel the CRC places unnecessary financial burden on them and 41% feel the CRC should be postponed until the UK economy’s financial recovery is more secure.


It is also worth noting that nearly half of organisations (48%) said they felt the scheme’s first league table, due to be published in October 2011, will not carry any real meaning. When the scheme was first launched, the league table was an important element designed to showcase the best and worst performers and provide financial and reputational incentives for participants. These results support other feedback which suggests that


organisations are now viewing the scheme purely as another tax.


Regardless of how they feel about the scheme and its recent changes, organisations need to understand that compliance with the scheme is mandatory for full participants. It is crucial that they keep it on the board agenda. They should not only focus on compliance, but also strive to implement the energy saving behaviour that the scheme encourages. It is important that organisations focus on this best practice behaviour, as energy efficiency and effective management make sound commercial sense, with or without the scheme.


WHAT CAN ENERGY MANAGERS DO? From compliance with legislation to developing and implementing an integrated energy management plan,


PUBLIC SECTOR SUSTAINABILITY • VOLUME 1 ISSUE 3


CUTTING C THE PUBL


Max Langford


energy managers are key to the success of a strategy. Whether it’s ensuring energy is being procured in the best way possible, or keeping energy usage across an organisation to a minimum – such as monitoring heating levels and lighting use – there’s huge scope to make a real difference.


There is a direct link between emissions and every organisation’s bottom line, so energy efficiency should always be embedded into its culture. Energy managers can be instrumental in ensuring their organisation focuses on long-term energy reductions, despite the ever- changing legislative climate.


Energy managers need to work across the organisation and not approach changes to energy legislation, such as the CRC, in isolation. All work towards compliance with energy legislation needs to be part of an integrated energy management plan. This ensures it is adhered to in the best possible way and ultimately energy consumption and costs can be reduced. For any energy management strategy to be successful, energy managers need to work collaboratively with the management board and all staff to ensure that everyone is active in its implementation. By raising energy management to director level, organisations can ensure they have the time and resources devoted to it to achieve both cost and carbon savings.


MEETING THE CHALLENGE The next milestone in the CRC calendar is submission of the first footprint report by 29 July 2011. This details an organisation’s carbon emissions from April 2010. Our research reveals that not only are one in ten organisations concerned they will miss the deadline but that the same amount are not confident the data they will submit is correct. This is a real


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