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blog http://www.savebusinessenergy.co.uk/blog/ Why "green" is part of the problem http://www.savebusinessenergy.co.uk/blog/why-green-is-part-of-the-problem/ I was a conference recently taking part in a seminar and realised that one of the biggest obstacles facing the mass take-up of energy efficiency technologies is perception.
The conference was well organised, and there were a number of interesting and topical seminars put-on. However, the seminar I took part in, the “green” seminar, was placed towards the end of the last day and labelled “green”. Unsurprisingly the turnout wasn’t as high as anyone would of liked. However, the sub-heading/strapline of the seminar made clear that what was really being discussed was cost management.
Cost management is a mainstream topic. Had the word green not been present in the strapline, I am convinced that the appeal, and therefore the attendance would have been better. Being green, it seems, does not necessarily yet equate in everyone’s mind to sound business practice.
Logically though, most people would probably accept if you put it to them that good management of your building’s environment and proactive management of energy consumption will result in significant cost savings. Yet this message is being lost as a significant part of the audience can’t get past the use of the word “green”. It’s perceived as being “worthy” and not worth the time of a serious businessman- but the reality is nothing could be further from the truth.
“Green” anything, once a useful shorthand for environmentally friendly, has become part of the problem- something which distracts from the core message. So at Pathfinder, going forward, I’m going to ban its use.
 You don’t need to buy into the climate change agenda to see that leaving the lights on, or the boiler or air conditioning running when they don’t need to is costing you money you don’t need to spend. Which in a nutshell is what energy management is all about…. Wed, 31 Oct 2012 14:19:34 +0000 http://www.savebusinessenergy.co.uk/blog/why-green-is-part-of-the-problem/ Why switching energy supplier doesn't always result in energy cost savings http://www.savebusinessenergy.co.uk/blog/why-changing-energy-supplier-isn-t-always-the-answer/ I've lost track of the number of energy supplier switching services there are now. Like their distant cousins, the energy brokers, they sell a beguilingly simple idea, namely that by switching energy suppliers you can save a fortune on your gas or energy costs.
However, as many companies (and individuals) have found, the results are often disappointing. But why is this? In theory, price comparison sites and brokerages should drive down costs to the consumer, as they provide a means for mass comparison of tariffs and terms and conditions.
The complexity of many contracts makes meaningful comparison actually quite difficult. Attractive headline rates often hide hidden costs in the small print.
Understanding how the energy brokerage market works is also illuminating. See if you recognise this scenario.
Company A's chief financial officer is contacted by an energy broker offering to help them finder a cheaper tariff on their next energy supply contract. As reducing business costs is a top priority, the company's CFO agrees to engage with the broker. The results come in, and the tariff rate on the offered rate is marginally cheaper than the rate they're on at present. Assuming that the rate being offered is the best available in the market, the CFO signs up to the deal and is locked in for the contracted period.
However, unless the broker in question operates a whole of market approach (the majority don't), this assumption could well be wrong. Quite often, the brokers have aggressively negotiated commission terms with a small number of suppliers (sometimes as low as just one). It is not in their interests to provide too wide a choice of suppliers, as the commission terms on offer to them will vary wildly from one supplier to another. Additionally, the higher the tariff price (and by definition the smaller the gap between your existing tariff rate and the new quoted rate), the higher their commission from the supplier. Once any fees have been included (some brokers make commission and charge fees to the customer), it's actually possible to find that the company is worse off than they were on their old contract.
Some companies operating in this unregulated sector also operate questionable practices in relation to contracts with "evergreen" clauses which roll the terms of the contract, unless formal notice to terminate the contract is received by the supplier with a limited termination window. If the business is not careful it can end up being locked in for far longer than it intended.
The fundamentals pushing energy prices higher affect the supply companies too. Higher costs for them are passed onto their customers which means that switching supplier can only ever provide temporary relief. In the end, if one supplier has to put up prices, they all do. It's just a question of when they have to do this- which is determined by the expiration dates on their major forward buying contracts.
Ultimately, the only real way to mitigate against rising energy prices is use less of it.
 
 Wed, 05 Sep 2012 14:12:00 +0100 http://www.savebusinessenergy.co.uk/blog/why-changing-energy-supplier-isn-t-always-the-answer/ Making sense of energy jargon http://www.savebusinessenergy.co.uk/blog/making-sense-of-energy-jargon/ The energy sector is crammed full of jargon. Acronyms abound.... and it can be very confusing if you're new to the area. Here's our guide to some of the most common terms and what they actually mean
<table style="width: 644px;" border="0" cellspacing="0" cellpadding="0"><tbody><tr height="20"><td width="136" height="20">Phrase or acronym</td>
<td width="179">Full title</td>
<td width="329">What is it?</td>
</tr><tr height="100"><td height="100">CCA</td>
<td>Climate Change Agreement</td>
<td width="329">Agreement negotiated by some trade bodies and the government to partially offset the impact of the Climate Change Levy (see CCL). Sectors with CCAs in place include aluminium, chemicals and food.</td>
</tr><tr height="240"><td height="240">CCL</td>
<td>Climate Change Levy</td>
<td width="329">Usage based business tax, applied to all businesses by suppliers on behalf of HMRC. The rate changes each year. It is designed to encourage lower usage of fossil fuels and will increase over time. There are provisions within the legislation for companies in some sectors to obtain discounts of up to 65%, if they opt to join a Climate Change Agreement (see CCA) agreement to meet energy-efficiency or carbon-saving targets negotiated by your trade body and the government. To qualify, you must meet binding targets - reviewed every two years - for reducing energy use.</td>
</tr><tr height="240"><td height="240">CRC</td>
<td width="179">Carbon Reduction Commitment</td>
<td width="329">The CRC is a mandatory scheme aimed at improving energy efficiency and cutting emissions in large public and private sector organisations.These organisations are responsible for around 10% of the UK’s emissions.The scheme features a range of reputational, behavioural and financial drivers, which aim to encourage organisations to develop energy management strategies that promote a better understanding of energy usage. Companies fall under the CRC if their annual consumption exceeds 6000 mw/h (mega Watt hours).</td>
</tr><tr height="140"><td height="140">DEC</td>
<td>Display Energy Certificates</td>
<td width="329">Assesses the actual energy performance of public buildings over 1000 sq. metres, used by large numbers of the general public. Similar in look and feel to an EPC but is based on actual consumption and must be displayed in a prominent location. Hotels are not required to display these as they are exempted.</td>
</tr><tr height="100"><td height="100">DECC</td>
<td width="179">Department of Energy and Climate Change</td>
<td width="329">The government department responsible for energy and climate change issues. It is the department responsible (although not exclusively) for environmental initiatives, such as the Green Deal and FiTs.</td>
</tr><tr height="200"><td width="136" height="200">Energy Management</td>
<td>Energy Management</td>
<td width="329">The practice of proactively managing the amount of energy used. This means monitoring and understanding current enery usage patterns, before identifying suitable techniques and methods of reducing overall demand. Reduced demand can be the result of many things. Some of the most common techniques are linked to eliminating wastage and reducing baseline demand (the overhead associated with doing whatever your business does). </td>
</tr><tr height="140"><td height="140">EPC</td>
<td width="179">Energy Performance Certificate</td>
<td width="329">Building based energy assessment required whenever a building or business is bought or leased. An EPC assesses how energy efficient a building is. Properties are graded A-G, with G being particularly inefficient. Provides simple recommendations of ways to improve the energy efficiency of buildings.</td>
</tr><tr height="240"><td height="240">FiTs</td>
<td>Feed in Tariffs</td>
<td width="329">The Feed in Tariff is the amount of money paid as a subsidy, by the government, to encourage the growth in small scale renewable energy projects, such as roof mounted solar photo voltaic installations. The rate paid is periodically reduced, as the industry (in theory) becomes self-sustaining. The current rate is 21p per kW/h, althought his is due to drop to 16p kW/h on 1st August 2012, for new installations on properties with an EPC rating of D and above. Once accepted onto the FiTs scheme, you will receive the rate agreed for the lifetime of the scheme.</td>
</tr><tr height="340"><td height="340">Green Deal</td>
<td>Green Deal</td>
<td width="329">New government sponsored property based loan scheme which is designed to provide competitively priced medium term finance for energy efficiency projects in both the residential and commercial sectors. You only pay the loan while you are the payer of the electricity bill. When you move, the loan stays attached to the property. The most suitable and effective energy efficiency measures are identified following an assessment carried by a qualified Green Deal Advisor (GDA). The measures specified come from a prescribed list of proven solutions and can only be installed by Green Deal accredited installers. There is a golden rule in the scheme which states the savings generated must exceed the costs, over the lifetime of the loan. The scheme is due to launch in October.</td>
</tr><tr height="100"><td height="100">kW/h</td>
<td>Kilowatts per hour</td>
<td width="329">Unit of measurement used to measure energy usage. Energy bills reflect the number of kilowatt hours you have used. Energy is also priced in kw/h in the UK, so your tariff rate is the price for a kw/h of electricity of gas.</td>
</tr></tbody></table> Thu, 16 Aug 2012 15:01:17 +0100 http://www.savebusinessenergy.co.uk/blog/making-sense-of-energy-jargon/ Are your guests getting hot under the collar? http://www.savebusinessenergy.co.uk/blog/are-your-guests-getting-hot-under-the-collar/ One of the hidden benefits of energy management is that it can positively impact on customer comfort levels and as a result customer satisfaction. If you’re not exerting sufficient control over the ambient temperatures in your building, then your customers will be experiencing discomfort and this could colour how they view their guest experience. People are generally very sensitive to temperatures. Most people are comfortable between 18-21 degrees C, however once temperatures move either side of this optimum, they’ll start to feel uncomfortable. Customers experience will be impacted by temperature. The food can be great and the service exceptional, but it’s just as important to ensure your customers are enjoying the environment. A great review on a website can be sorely impacted by negative comments about temperature and the overall enjoyment of a stay.
In order to understand more about your customers experience, you should be asking some simple questions to identify opportunities for improvement for both the business profitability and the customer experience.
<ul><li>Did you find the temperature in your room comfortable? Y/N</li>
<li>If no, were you too hot or too cold?</li>
<li>Were you able to identify what was causing the discomfort? (Eg radiator/air conditioning)</li>
<li>Did you find the ambient temperatures in communal areas (eg reception, the restaurant) to your satisfaction?</li>
<li>If no, were you too hot or too cold?</li>
<li>Were you able to identify what was causing the discomfort? (Eg radiator/air conditioning)</li>
</ul>It should be possible to determine patterns of overheating or overcooling fairly quickly, with the responses received. This will allow you to pinpoint areas of improvement and respond accordingly, by making appropriate changes. Overcooling in particular, is a major cause of energy wastage. Eliminating this type of needless waste will result in a better managed environment, lower energy costs, fewer complaints and happier hotel guests. Tue, 14 Aug 2012 16:12:53 +0100 http://www.savebusinessenergy.co.uk/blog/are-your-guests-getting-hot-under-the-collar/ Energy prices are rising- are you on top of the game? http://www.savebusinessenergy.co.uk/blog/energy-prices-are-rising-are-you-on-top-of-the-game/ Drought, storms, rising seas and floods: it’s a dark picture of life on Planet Earth come century’s end if greenhouse gas emissions from burning coal, oil and gas continue to prevent the sun’s heat from escaping the atmosphere.
Tougher emissions reduction targets are needed if the European emissions trading system is to fulfil its aim of encouraging investment in low-carbon energy sources. Energy costs are rising and expensive foreign gas imports will soon become a necessity as natural gas production winds down in the UK as a result of diminishing reserves.
A significant portion of the UK’s energy generation capacity is gas generated, so while coal generation has been increased to meet demand in the short term, this will have to change again in 2013 as we edge closer to the 2015 deadline for the closure of coal plants that do not meet stringent EU rules for carbon and sulphur emissions.
A minimum of £100 billion of private investment is required to fund the next generation of energy infrastructure within the National Grid to enable it to cope with increasing levels of renewable and demand-side generation and potentially new gas and nuclear plants too. As the old plant comes offline we’re heading towards a capacity crunch which can only push prices up, as energy suppliers price according to demand. It’s worrying news for commercial and domestic customers.
Energy efficiency has therefore never been so relevant. Energy is a complex and expensive commodity. We need it to run our businesses but it’s becoming one of our largest costs. According to the Department of Energy and Climate Change (DECC), prices are expected to rise a further 50% in real terms by 2020, as UK targets dictate that 30% of electricity must be obtained from renewable sources. You can’t manage what you can’t see though, which is why it’s so critical that we gain visibility over our energy consumption.
In the hotel industry, for example, every one degree in temperature above 21 degrees represents 5% wastage. With an energy saving strategy in place, you could eliminate this overheating to counter unnecessary expenditure and ensure on-going savings are made. Similarly, clogged air conditioning filters can reduce energy efficiency by up to 45%, so it’s critical to stay on top of air conditioning maintenance.
An energy saving strategy isn’t just a nice-to-have, it’s something that will drive significant cost savings in your business and should be considered an essential part of good financial management. Thu, 26 Jul 2012 15:42:33 +0100 http://www.savebusinessenergy.co.uk/blog/energy-prices-are-rising-are-you-on-top-of-the-game/ CRC Version 2 (or is it 3?) http://www.savebusinessenergy.co.uk/blog/blog/ Hi and welcome to Pathfinder's first ever blog!
The Department of Energy and Climate Change (DECC) launched a consultation on 27 March setting out further reform proposals for the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme. The new look CRC has been designed to cut costs for businesses by reducing the complexity of the scheme. All of which is very laudable.
This isn't the first attempt to reform the scheme. Business has felt for some time that the CRC was overly bureaucratic and needed a radical overhaul if it was to deliver the desired reductions in carbon emissions. For the uninitiated, the CRC enforced carbon emission reporting among businesses in energy hungry sectors, which consumed more than 6000 mw/h in the qualification year. Each year, carbon emission reduction performance was to be measured and a league table published which in effect would "name and shame" poor performers.
However, the complexity of the scheme meant that only a few of the very largest companies were aware of their obligations under the scheme. Many others which should have complied, were either unaware of the scheme's requirements or did not have the resources to get to grips with it- hence the review.
The reform consultation document contains no fewer than 46 changes!! Now if you need to make 46 changes to something, the chances are that by the time you've finished you will have succeeded in doing two things:
1) Creating a new very complex scheme
2) Confusing the hell out of anyone who did actually understand the existing version of the scheme
The CRC had some great aspects to it. Of all the government's initiatives, this was probably the one which could have achieved lasting changes in approach to carbon emissions. Companies which do nothing to make their buildings more energy efficient will effectively face financial penalties, while they will be rewarded if they invest in energy efficient technology (as they will not be subject to an emissions levy).
Yet you sense that the government's heart is not really in this consultation.
There are already rumours that the Chancellor, George Osborne, may look to replace the CRC entirely in the autumn if the revamped scheme does not deliver the anticipated savings. The anti-green lobby shouldn't start celebrating yet though. If this happens, the Chancellor is almost certainly going to replace the CRC with a straightforward tax on carbon emissions.
All of which means that businesses should still look to invest in technologies which allow them to use less energy, as one way or another, they will shortly be paying more than they ever have before, just to maintain the status quo. Using less is the only way to mitigate against rising energy costs.
 Tue, 17 Apr 2012 11:08:18 +0100 http://www.savebusinessenergy.co.uk/blog/blog/