Inform Carbon Reduction HUGE AGENCY SAVINGS


The Environment Agency is spending more than £30,000 a year less after installing voltage management tech- nology at its premises. Following trials of electric- ity ‘supply’ management solutions the government agency has begun to roll out powerPerfector’s Voltage Power Optimisation (VPO) across 35 sites.


VPO optimises a site’s supply voltage, making elec- trical equipment run more efficiently and consume less energy. The savings are based on the first six instal- lations. Once the rollout is completed the Agency could reduce its annual energy spend by around £75,000. “Installations on a build-


ing’s incoming power sup- ply hold far more risk than demand side installations,” said Angus Robertson, CEO of powerPerfector.


MPs raise concerns over oil spill disaster systems


MPs have said that deep sea drill- ing in the UK should not be sus- pended, but have raised serious doubts about the UK’s ability to deal with oil spill disasters. The


Deep sea drilling to continue


Energy and Climate Change Committee has released a report into the implications for the UK following the US Deepwater Horizon disaster. It concluded that a moratorium would endanger the UK’s energy security and would cause drilling rigs and expertise to migrate to other parts of the globe.


While it found that the UK has high offshore regulatory stand- ards, the committee said it had serious doubts about the systems in place for dealing with oil spills, particularly in very deep wells. It rejected calls for increased regulatory oversight by the EU, but recommended that the


The Energy and Climate Change Committee rejected calls for more regulation


Government works with the EU on clarification of clear-up costs. It recommended that a new directive be drawn up to ensure that oil companies are responsi- ble for the costs and remediation of any environmental damage so that the cost does not fall to the taxpayer.


It also recommended


that the Government ensures that any capping, containment and clean-up systems are designed to


take full account of the harsh and environment West of Shetland. While Energy minister Charles Hendry said he welcomed the report and would consider its recommendations in detail, Greenpeace, condemned it. Greenpeace executive director


John Sauven said: “This report lists all the reasons why a ban on deep sea drilling makes sense and then ignores its own findings.”


Analysis reveals amended CRC costs


Good practice businesses to be £560,000 worse off


Analysis of the cost to businesses of the Government’s amended Carbon Reduction Commitment (CRC) Energy Efficiency Scheme have been revealed.


The study, by the consultancy hurleypalmerflatt of its clients from the past two years, shows that while all participating organi- sations will face costs, those that take a good practice approach to meeting CRC requirements and invest


in carbon management


stand to lose less money than those aiming for basic compliance. The cost of the CRC for a typical organisation with a £1M a year energy spend stands at an estimated £430,000 for those that adopt good practice to complying


with the CRC. While those doing the minimum possible will see a £640,000 cost to their organisa- tion over the same period, a dif- ference of £210,000.


However, organisations apply- ing good practice are set to lose out more than basic compliance businesses when comparing costs with the original CRC (see box). Last March, before the Comprehensive Spending Review, hurleypalmerflatt calculated that the CRC would cost basic com- pliance businesses £280,000, but good practice organisations could receive revenue of £130,000. Now that revenue recycling has been abolished and all receipts will go to the Treasury, good practice businesses will be £560,000 worse off under the CRC now than pre- dicted in March – whereas basic


COSTLY BUSINESS Iteration of CRC


Before CSR After CSR


Loss as a result of CSR


Basic compliance Cost of £280,000 Cost of £640,000 £360,000


compliance businesses will be £360,000 worse off.


Organisations covered by the CRC must buy carbon credits annually to cover their expected carbon emissions and will be list- ed in a league table showing the best and worst performers. Companies that invest in car- bon management and reduce their emissions will need to buy fewer credits, will perform better in the league table and will have to pay the Government less than others. “Many now see the CRC as a


Good practice


Revenue of £130,000 Cost of £430,000 £560,000


green tax. Our analysis shows even though there will be costs to all, it will still pay businesses to invest in good carbon reduction practice,” said Stuart Bowman, hurleypalmerflatt’s energy and sustainability director.


“We are in an era where sound environmental practice makes commercial, as well as ethical, sense – it is frustrating that those organisations approaching carbon reduction in a


comprehensive


way will not reap the rewards that they would have before.”


BRIEFS SEVERE WINTER WEATHER AND THE ASH CLOUD CONTRIBUTED TO A 4.3% DECREASE IN THE NUMBER OF AIRCRAFT IN UK AIRSPACE LAST YEAR 6 | Sustainable Business | February 2011


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