The Benefits

Economic

Minimising energy waste means saving money through lower energy bills and lowering Climate Change Levy payments. This results in improved profits, which enable your organisation to price its products and services more competitively. Controlling energy costs through energy efficiency help mitigate the impact of energy price increases in the future. Organisations that have not looked seriously at energy efficiency can typically save 20% on their energy consumption through no-cost and relatively low-cost measures, yielding significant reductions in their energy bills.

Many industrial companies are now party to Climate Change Agreements with the government. These companies receive an 80% discount on the Climate Change Levy for agreeing to energy efficiency targets. If targets are not met, then the benefit of the discount can be lost. Only particular industrial processes are eligible for inclusion in an agreement [link to CCL Exemptions].

Environmental

Wasting energy not only wastes money, it results in unnecessary pollution, particularly through emissions of the main greenhouse gas, carbon dioxide. Global warming, with the consequent changes to sea levels, weather patterns and spreading of disease, is widely considered to be the single most important environmental issue facing us all.

The UK government's response to the problem is set out in its Climate Change Programme, published in November 2000. This details how the UK plans to deliver its international obligation, as a result of the Kyoto protocol, to cut its greenhouse gas emissions by 12.5%. It further outlines the plan to move towards its domestic goal to cut carbon dioxide emissions by 20% below its 1990 levels by the year 2010. By using fuel and electricity more efficiently, your organisation will reduce its impact on the environment, help the UK meet its international commitments, and save the planet.

Regulatory

Increasingly, regulation at both the UK and European level is being applied to drive improvements in energy efficiency. Energy efficiency is not just a matter of operating efficiently; it can also be a factor in operating legally.

The European Directive on Integrated Pollution, Prevention and Control, implemented through associated regulations in the UK, requires that sites operating specified processes use energy efficiently. The new Part L2 of the Building Regulations requires more stringent control and monitoring of energy consumption in buildings. New measures now govern the performance of lighting, heating and hot water installations and the air tightness of the building fabric. Most of these measures apply to new buildings, but also apply to the substantial refurbishment of much industrial scale lighting, heating and building fabric projects.

 Many organisations, particularly those in the public sector are facing increasingly tough targets for the efficient use of fuel, with new mandatory directives issued for NHS estates, MOD establishments and many local authority premises. These targets are expected to widen to include many other organisations.

Quality

Energy efficiency is an important factor for accreditation requirements of environmental management systems such as ISO14001 and EMAS. Many organisations now require their suppliers to operate under these systems. Good energy management helps supply chain obligations to be met. In addition, good performance can be publicised, thereby establishing green credentials for the organisation. An image of responsibility for the organisation is increasingly important to customers and shareholders alike.

Many energy efficiency measures can also bring substantial benefits in terms of employee comfort through improved heating, insulation and the avoidance of cold spots. This can reduce staff turnover and improve productivity. Attention to energy efficiency often highlights deficiencies in other areas such as maintenance, process yield and quality, and so can bring significant additional productivity benefits.