Tag Archives: energy management

Npower Reports Over Half Of UK’s SMEs Failing To Realise Energy Cost Savings

Npower has revealed new research that shows over half of small to medium sized businesses (SMEs) have no measures in place to monitor energy efficiency, despite many of them seeking ways to manage the bottom line in tough economic conditions.

The findings from the latest npower Business Energy Index (nBEI) show that 53% of the 4.8 million* SMEs in the UK have no methods in place to manage business energy efficiency, and nearly one in five (18%) didn’t know if they had reduced their energy consumption over the past 12 months.

This is despite figures from the report showing that where energy efficiency is being measured, 50% of SMEs reported savings of up to 10%, showing there is huge scope to make significant business savings, while also reducing carbon emissions.

Statistics from the Carbon Trust also highlight the potential for SMEs to reduce emissions further. The Trust found that SMEs have a potential energy saving opportunity of up to 20%, compared to 8% for large businesses.

Patrick Harvey, head of customer loyalty at npower, said: “This year’s npower Business Energy Index found that for SMEs, the greatest driver for increasing energy efficiency is cost, rather than the environment. This is why it is surprising that so many are still not measuring the positive impact that implementing energy efficiency measures can have on their business.

“The results of the research show the huge untapped potential for SMEs to both reduce emissions and increase savings.”

However, encouragingly, overall the nBEI found that the importance SMEs place on energy management and efficiency is at its highest level since 2005. When asked to rate the significance of energy management to their business out of 10, SMEs gave an average score of 6.7, which is up from just over 5 when the Index began.

Coupled with this, many reported to be proactively measuring their energy usage and recognising the payback of low-cost, quick-win measures such as turning equipment off, which was ranked as the most popular action over the past six months. This was followed by regularly monitoring consumption and reducing heat loss.

Patrick Harvey continued: “It is really encouraging that energy efficiency is working its way up the business agenda but there’s still a long way to go.

“More businesses need to realise that through simple to implement and low or no cost measures, they can lower their bills by around 10%. In today’s tough operating environment this is a saving that SMEs can’t afford to over overlook. This is why we’ve developed SmartStart – a toolkit and advice service which helps SMEs get energy saving measures up and running and gets them saving on their bills quickly. Smaller businesses don’t have to rely on their landlords or have a big team in place to identify and implement energy saving measures.”

For more information on how npower can support SMEs reduce emissions and cut costs please visit www.npower.com/Business/SmartStart.

Via EPR Network
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npower Reveals Nearly Half Of Businesses Want The Carbon Reduction Commitment Scrapped

Npower has conducted new research revealing that, on the first anniversary of its implementation, UK businesses want the Carbon Reduction Commitment Energy Efficiency Scheme (CRC) scrapped.

The research reveals that companies not only want to see an end to the scheme, but over a quarter (29%) also said they do not think the Carbon Reduction Commitment 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 its Comprehensive Spending Review and as such, financial incentives which were originally included in the scheme were removed. Nearly half of businesses (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 businesses to reduce their carbon emissions – another important reason why the scheme was introduced in the first place.

Dave Lewis, head of business energy services at npower, said: “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 businesses putting less priority on reducing emissions, which was one of its key aims. We feel it is important that organisations focus on the best practice behaviour the CRC sets out to encourage, as energy efficiency and effective energy management make sound commercial sense, with or without the scheme.”

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

Dave Lewis continues: “It is also worth noting that nearly half of businesses (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, this was an important element of its financial and reputational incentives, so these results seem to suggest that organisations are viewing the scheme differently, and many of our customers have told us they see it purely as another tax.

“The next milestone in the CRC calendar is submission of the first footprint report, which details an organisation’s carbon emissions from April 2010. This is due by 29 July and our research reveals that not only are over one in ten businesses concerned their company will miss the deadline but that 10% of them are not confident the data their company will submit is correct. This is a real concern as accurate data is the first point of any effective energy management strategy and only by truly knowing how and where energy is being consumed can efficiency measures be put in place.”

Via EPR Network
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npower Urges Businesses To Make CRC A Board Level Priority

npower has launched a plea for businesses to make the Carbon Reduction Commitment Energy Efficiency Scheme (CRC) a board level concern and develop a strategy to manage participation to avoid financial loss and reputational damage.

npower Urges Businesses To Make CRC A Board Level Priority

This is the message of a new film – Understanding the CRC from energy firm npower, designed to help businesses prepare for the scheme and avoid potential pitfalls. npower’s film provides guidance on qualification for the CRC, the importance of managing energy and carbon emissions to succeed under the scheme, and the reputational implications of the CRC league table that will name and shame those participants failing to reduce emissions.

It also points out the potential financial benefits of the scheme. DECC calculates that the CRC will stimulate £1bn of cost savings for participants through better energy efficiency.

A further message coming through loud and clear from the film is the importance of having a board member responsible for the CRC. Annual ‘evidence packs’ detailing participants’ energy consumption must have board level sign off. The CRC will also require enterprise-wide investment and behaviour change to improve energy efficiency, which typically can only be sanctioned at the highest level.

Dave Lewis, head of business energy services at npower said: “A lot of businesses are turning to us for advice on the CRC and it’s clear that many are still unclear on the obligations it places on them, and the opportunities and challenges it presents. Our film answers these questions and will hopefully go some way in addressing the concerns that some organisations have. Those affected by the scheme only have until the end of September to register, so it’s important they understand what they need to do and how they can make the CRC benefit their business. This must be driven from the very top if businesses are to realise all the advantages the CRC offers.”

npower helps companies monitor and manage energy consumption to bring commercial and environmental benefits. To help achieve this, npower has developed a monitoring and targeting (M&T) tool – encompass. A web-based system, encompass gives businesses accurate and timely information on their energy consumption, providing them with the data they need to implement cost and CO2 reduction policies. The system automatically collects data from half-hourly and smart meters, providing a detailed report on a business’ energy consumption behaviour, and the related cost and environmental impacts of this. With this data, benchmarks can be set and consumption tracked, alongside mapping of carbon use and cost.

Via EPR Network
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CO2 Reduction Not A Business Priority In Current Economic Climate Reports Npower

Npower has released data that shows more than eight out of ten businesses feel that Government targets to reduce CO2 emissions are unrealistic, with many not seeing the benefit of a small carbon footprint and relegating carbon reduction measures to concentrate on managing costs.

These are among the findings of the npower Business Energy Index, an annual report tracking business opinion on energy use and carbon emissions.

In this latest index, the majority of businesses (83%) said the target to reduce CO2 emissions by 80% by 2050 was unrealistic. Attitudes on the potential commercial opportunities of a small carbon footprint are equally downbeat; only 31% think new business will occur as a result of reducing emissions, compared to 47% in npower’s 2008 index.

The findings also reveal that the economic downturn is leading businesses to prioritise finances over CO2 reduction; 97% said they are currently more concerned with reducing costs than emissions.

68% of businesses believe it is still important for the UK to take a leading role in reducing global emissions. This is a drop f r o m the 2008 index in which 88% of businesses backed the Government’s emission reduction plans.

Despite these opinions the Business Energy Index reveals a renewed focus on energy efficiency measures, with the importance attached to energy efficiency at its highest level since 2005. Furthermore 80% of businesses say they are likely to increase energy efficiency initiatives and, while this was primarily for cost benefit, the same measures would also lead to emission reduction.

Energy efficiency was also rated as the most popular action for businesses to take to reduce emissions, with 43% giving this answer ahead of changing processes (22%) or switching to a green tariff (18%). However, the Index suggests that more needs to be done to support businesses, with 51% of those questioned saying they thought the Government did not offer enough useful advice on the issues of carbon reduction and energy efficiency.

Julia Lynch-Williams, director of energy services at npower, said: “The Index shows that most businesses do not see the commercial benefits f r o m having a small carbon footprint, but we can’t escape the fact that climate change legislation and the strength of public feeling means that CO2 reduction remains important. The Government has set the UK on a path toward a low carbon economy and must now continue to stress to businesses the opportunities that will come f r o m low carbon operations.

“Energy efficiency is an excellent way to save money and it’s encouraging that many businesses are looking at this to reduce costs. While it’s understandable that businesses are more focused on the bottom-line in the current economic crisis, we would encourage them to see energy management as an effective means of reducing emissions as well as costs.

“Our advice to businesses is to make energy efficiency a priority now and in the long term.”

In-depth telephone interviews were conducted in January 2009 with a representative sample of 300 UK businesses, comprising 200 small-to-medium-sized enterprises (SMEs) with significant energy usage and 100 major energy users (MEUs).

The npower Business Energy Index (nBEI) is sponsored by npower, in association with the Major Energy Users Council (MEUC) and Federation of Small Businesses (FSB). The nBEI is designed and executed by Moffatt Associates, an independent research consultancy.

About npower:
npower is one of the top energy suppliers to the UK business market, serving over 230,000 small to medium sized enterprise sites and around 15,000 industrial and commercial customers, with over 100,000 sites.

npower is dedicated to helping UK businesses use energy more efficiently and therefore spend less money on their bills. 

Via EPR Network
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