· With energy prices set to nearly double by 2021, creating an £8.4bn additional cost for the UK economy, Power Efficiency’s 10-point guide will help UK boardrooms minimise the pain ahead.
· Companies that do not manage energy strategically from the
boardroom will “… see energy inflation eat into profits very sharply
over the next decade.”
Power Efficiency has today released ‘The
Energy Dilemma’, a ten-point guide, which will help board directors of
UK companies understand why they need to take the energy issue ‘out of
the plant room and into the boardroom’.
Power Efficiency, a Balfour Beatty company, is an energy procurement and
carbon reduction consultancy, which acts for a number of blue-chip
companies and many of the UK’s leading commercial property managing
The paper was developed following research published earlier this year,
commissioned through the independent consultancy Waters Wye Associates,
which projected that energy costs are set to rise by 81% by 2021. The
Government’s own Inter-departmental Analysts Group (IAG) predicts that
gas and electricity will rise by 116% and 167% respectively over the
Bobby Collinson, managing director at Power Efficiency, said: “The touch
points for energy management throughout an organisation are far
reaching: procurement, IT, facilities, manufacturing and HR are just a
few. The energy contract is only one part of the puzzle. Energy is a
strategic issue for the future of all organisations that impacts the
bottom line. Those that fail to treat it as a boardroom issue will see
energy inflation eat into profits very sharply over the next decade.”
‘The Energy Dilemma’ can be downloaded at http://www.powerefficiency.co.uk/white-papers.
It covers several aspects of energy management, giving board members,
especially MDs and FDs, clear advice on where they should focus in order
to improve efficiencies and lower costs going forward.
Below is a brief summary of the agenda items in the white paper that
Power Efficiency recommends are discussed at board level to ensure
energy management is effective within an organisation:
· STRATEGY - Does the business have an energy management strategy,
which addresses the issue of how we will manage rising energy costs?
· COMPLIANCE - Do we look at compliance as a ‘tick box’ obligation
or is it something we can turn to our business advantage?
· PROCUREMENT – How do we procure energy? What is the basis of our
supply contracts (fixed price or flexible) and if the latter, how
robust is our risk management strategy?
· INVESTMENT - What level of capital investment do we need to
reduce energy costs and become compliant? What ROI can we realistically
expect from this investment?
· OPERATIONS AND MAINTENANCE - Do we risk a costly reactive
maintenance programme or should we go for an alternative like Planned
Preventative Maintenance (PPM) or Condition Based Maintenance (CBM) and
what criteria will we use to make this decision?
· COST MITIGATION - Where can we look for help with our investment
and running costs? What does the Green Deal mean for our business?
· MONITORING AND MEASUREMENT - If we don’t measure it properly, we
won’t be able to manage it properly. What do we need to put in place to
give the business a better understanding of its energy management
· CREATIVE IDEAS - How can we challenge our thinking to create
opportunities to improve energy performance? We need to ask questions
like: Do we work the correct hours? Are we in the correct building?
· CONTINGENCY - We have taken energy supply for granted. What will
the business do if supply is interrupted and can we take advantage of
the National Grid’s STOR and Frequency Control Demand Management
· NEW SOLUTIONS – Is energy management something we can outsource
or risk transfer? We’ve been hearing about new models for this market,
which provide such a solution, for example, what is the ESCO model and
is it right for our business?