Energy Efficiency: Can organisations reduce their utility consumption without a spend to save process?

Prepared by Paul Webb, MEI Chartered Energy Manager www.b2benergy.co.uk

Over the years I have worked with many organisations to really impact on their utility consumption for gas, electricity and water. This for me has been the most rewarding part of my career working, with business owners and focusing on their ‘3rd Largest Expense’. The biggest pain point has always been ‘Cost’ but as the years have gone by, their pain points have multiplied and we are now seeing other issues coming into play.

We still have increasing costs, but now we have the added pain points of complexity, legislation, non-commodity charges, the dreaded taxes and of course climate change. There are becoming more and more reasons why businesses need to make an impact on their consumption. Incidentally these pain points are being felt across the world. Organisations are having to pay towards contribution of weak infrastructure with distribution and transmission. Only last night I was hearing on ‘Clubhouse’ that some countries are forcing organisations to reduce their consumptions ‘curtailment’ during hot spots throughout the day.

Organisations can get on top of this, but often don’t have the time or the experience to deliver such an approach. What’s more is that they are being subjected to abrasive legislation that will just add costs with no further benefit. Governments around the world are implementing these pressure points to drive consumption down. This in the governments eyes is the right thing to do, however organisations are just forced to increase their sales to compensate for this.

For example in the UK the price of a loaf of bread - 

I know that electricity or gas does not contribute to this 100% but there is a comparison regarding the rise in energy. We will see these trends just keep growing as there is nothing being addressed. The Global Energy Economy is growing 4% year on year and we need to slow this down. The only person who suffers here is the ‘consumer’. The energy in our homes will keep climbing and our business energy costs will grow daily.

The only way we can slow this down is to ‘Stop’ the cycle and reduce consumption as this is the only way to slow it down or even stop it. Businesses need to start to follow a very easy process:

• Review
• Realign
• Reduce
• Report

This solution does not need to cost money and in fact this can be done for no cost. A good financially minded business owner could implement such a plan to make an impact of this today and start a ‘Review’ process focusing on the bills and meter readings. By reviewing your last 12 months utility consumption you may start to see problems. I would also review your billing for the Rates, Estimation and Contract (My REC approach). You are bound to find issues here, in fact 50% of the billing I review will normally have an issue. This review normally kick starts the program.

I started this article by saying “Can organisations reduce their utility consumption without a spend to save process?” My answer to this question is yes and also from a “corner shop to an office block and everything in between” we can really make a difference.

Last week we saved a small organisation ￡700.00 pounds on their bills and last month we saved ￡50,000 on another property. Just in the ‘Review’ process.

Once the review has been implemented, focus can be applied as to the area best way to target and look to ‘Realign’ this process. This is predominately done with existing systems and behaviour patterns. This realignment will probably not cost any money, as it is as simple as adjusting a time-clock or manually switching the lighting or plant off by your team. How many times has someone left for home and forgot to turn the lights off or forgotten to turn the AC system off?.

It doesn’t take much to put a process in place to have this turned off or even have it controlled automatically.

Once you have addressed the ‘Review’ and ‘Realign’ you will then be in a position to realise the savings that have been made already. For example, the company that saved ￡700.00 could very easily look at implementing maybe a lighting program and installing some LEDs which will then release more savings. If you do this year on year, the saving will continue to grow and grow. They do say that money comes to money and by focusing on this process we can then start to see ‘Reduce’. Your consumption will be reducing month on month and by collecting the billing monthly and ‘Reporting’ this, you will be able to understand cost reduction.

These principles can be applied to all carbon footprint elements of your organisation and not only will the Energy Efficiency impact on consumption, it will reflect in your billing. The pay off will be significant and you will be able to provide a more competitive commodity price and maybe the consumer will see the cost of bread be reduced.

Where do you start?

Review the last 2 months of bills and ask questions about them and explore the following questions;

1.

R – Is the ‘Rate’ we are paying competitive – Contact the supplier

E – Are the bills ‘Estimated’ – Take a meter reading and submit actuals

C – Is the utility in contract – Call the supplier and confirm position

2.

Review your operation

Not all organisations are doing this and I believe they are missing a trick. It does take time and it does need to be approached regarding a discipline, but the rewards are significant not only for reducing costs but reducing our carbon emissions. Can you imagine what could happen if every company in the world implemented this? The climate change of our planet could be reversed.

If you enjoyed reading this article or want to provide feedback, please contact Paul Webb at www.b2benergy.co.uk or send him a direct message here on LinkedIn. He will respond within 24 Hours

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