By reducing their dependence on energy, businesses can cut costs, improve reputation, and stay one step ahead of environmental compliance.

Managementtoday asked Hugh Jones, director of solutions at the UK’s Carbon Trust, for his top 10 tips:

1. Build a business case

Any size of business can quickly and easily establish the ‘size of the prize’ to be had from energy efficiency, by using our Cut Carbon, Cut Costs tutorial online. A calculator evaluates the energy savings you can make and develops an action plan to help you achieve them. You could shave 20-30% off your annual bill.

2. Appoint an energy team

Simple improvements, such as cutting energy use ‘out-of-hours’, are often overlooked if someone isn’t in charge of implementing them. Firms should ensure there is responsibility within the organisation for driving improvements and cutting costs. An open-door policy will enable staff on the ground to make suggestions, and buy into your energy efficiency goals.

3. Seek advice

For businesses spending over £50k a year on energy, get an in-depth on-site survey, conducted by an accredited expert. The surveyor assesses every aspect of energy consumption – from heating, lighting and IT, to core plant machinery – and identifies ways to cut energy use. The Carbon Trust will then provide ongoing support to help make those savings a reality.

4. Spend to save

Many businesses continue using old equipment, rather than pay the up-front cost of replacing it. This is false economy, as old equipment uses considerably more energy than newer models, and in the case of plant machinery can impact on productivity by 20% to 30%.

The first step is to identify old equipment that’s become a cost burden. If you’re not sure how efficient your equipment is, seek guidance from the Carbon Trust. In many cases the likely payback period on energy bills is short enough to justify making a replacement.

5. Find out if you’re eligible for an interest-free loan

Last year, our interest-free loan scheme helped nearly 1,900 businesses replace £60m of equipment. By installing new, state-of-the art kit, these businesses now save £20m a year. And these savings pay the loans back over one to four years – after which the savings go straight to the bottom line.

6. Look out for the ECA

Even if you’re not eligible for an interest-free loan, all businesses can benefit from 100% tax relief on equipment replacements through the Enhanced Capital Allowances (ECA) scheme.

The scheme provides a qualified list of energy-saving products, and offers a financial incentive: 100% tax relief on qualifying capital expenditure on plant or machinery. This means businesses can write off the whole cost of qualifying equipment against the taxable profits of the year of purchase. This can provide a cash flow boost of up to 28% of the purchase cost.

7. Stay one step ahead of the CRC

The CRC Energy Efficiency Scheme is a UK Government carbon trading initiative, designed to change the way large public- and private-sector organisations consume energy.

It requires organisations to prepare a comprehensive record of carbon emissions – and ultimately to reduce consumption over time. Companies will need to invest in carbon allowances, sold at a fixed price of £12 per tonne of CO2 for the first three years of the scheme. The revenue from the sale of allowances will be recycled back to participants after six months, with a bonus/penalty element based on emissions performance and their relative position in the scheme’s performance league table.

8. Take early action on the CRC

The CRC has significant financial and reputational implications for businesses, so it is vital that larger businesses understand fully how it will impact them. And it rewards businesses that take early action to reduce emissions in advance of March 31 2011.

To reduce the cost of participation in the scheme and secure a higher ranking in the CRC league table, companies can voluntarily install advanced metering, and achieve the Carbon Trust Standard certification or equivalents.

To date, more than 250 organisations have already achieved the Carbon Trust Standard. These organisations have collectively realised savings of over £62 million – which is a compelling case for businesses to take action now.

9. Certify your efforts

The Carbon Trust Standard is a respected certification, which helps counter stakeholder scepticism. So as well as helping firms to secure a high ranking in the CRC, reducing energy costs and improving operational efficiency, it’s also a valuable marketing tool. Organisations such as First Direct and Marks & Spencer are already using the Carbon Trust Standard in their external communications.

10. Act now!

A common response from businesses which have implemented our energy efficiency advice is ‘we only wish we’d tried this earlier’.

By dedicating resources to energy efficiency, businesses can shave significant amounts off the bottom line in a low-risk manner – improving reputation, and placing themselves at the forefront of the low-carbon economy.

John Osborne at BSI (British Standards Institute) Training encourages organisations to think of energy management as business critical for cost reasons, but equally important as a means to embed sustainability and change across a workforce…

Improving energy efficiency within a business can provide a number of real benefits. Not only will it help to reduce impact on the environment, but it will also save money. Why then, do so many companies fail to put sufficient energy management policies in place to improve their effectiveness? A BSI study revealed that 80 per cent of respondents rated energy management as “very important”, with the key driver being to reduce or control cost, yet 60 per cent didn’t have an energy management policy in place.

Organisations are clearly talking the talk when it comes to energy consumption, but simply making the right noises isn’t enough. If businesses are to truly cut costs and offset this against less attractive cost cutting exercises then they need to put a clear system in place to manage this. Without a transparent policy to guide businesses forward, how can they even begin to answer those all important questions?

• How much energy does the business use currently?

• Who is responsible for managing energy efficiency within the company?

• What are the current issues with your energy consumption?

• What activities lead to consumption of energy?

• How can you improve your energy efficiency?

• Have you identified what areas need to be improved or completely changed?

• How much energy could you save in the long term?

• What impact would saving energy have on your business from a financial perspective?

Those businesses that are unable to answer all of these questions have really only scratched the surface of effective energy management (if at all). The likelihood for those that have a clear policy in place is they will have already addressed these questions, and will have made the first foot hold into producing a robust framework for making significant and continued improvements in energy consumption. A policy and tight framework will also allow identification of an organisations’ past, present and future energy consumption as well as the development of an energy monitoring process.

The BSI report showed that two thirds of respondents did not conduct regular energy usage audits, nor did they maintain a current energy management policy, both of which compromise the delivery of continual improvement in energy management.

In an effort to make the right noises, some businesses may make minor adjustments to save money, such as ensuring PC monitors are switched off at night, and perhaps replacing light bulbs with energy saving varieties; but is this really enough?

Energy management has evolved into a rather complex arena, covering a multitude of business activities all of which need to be taken into consideration when bringing about change and improvement. Companies may find that additional training and a standardised management system (such as BS EN 16001, the new European standard for Energy Management Systems) is needed to help them build a framework that will enable them to implement change. But there are a few simple steps you can take in the first instance to get the ball rolling:

• Take regular meter readings: this will help you to understand how much energy your organisation is currently consuming

• Organise thorough inspections of the work premises: this will help you to identify the areas where further savings can be made.

• Assess energy consumption levels on current activities

• Talk to employees and get their input on energy waste

• Take into account all energy related activities under the control of your organisation, for example the energy used to operate machinery and heat buildings. In taking these initial steps, most organisations will begin to realise the level of energy emissions being needlessly emitted every day.

Wasting unnecessary energy is largely due to poor organisation and education; in most cases employees simply don’t understand how to make the change themselves. But ultimately, wasted energy will affect the efficiency and productivity of a business, certainly in the long term.

Making change happen:

• Build a policy that incorporates the processes and practices you need to improve energy efficiency across the business. This will create a mechanism to turn energy efficiency into a key performance indicator

• Get buy in from senior management – do they really understand the benefits of making this change?

• Communicate with staff – involve them from the outset, get their feedback and suggestions for improving energy efficiency. The most successful change happens when everyone in the company is onboard.

• Establish clear minimum reduction targets so you have something the measure against

• Establish reliable ways of measuring consumption / assess on regular bases – energy consumption can fluctuate seasonally depending on weather and productivity.

• Establish objectives, implement, monitor and measure and continually improve

Once a policy has been created, organisations must implement the behavioural change needed to embed energy efficiency considerations into everyday decision-making and this is by no means an easy feat. This won’t happen overnight, it requires clear planning, perseverance and ongoing support.

Actions speak louder than words in today’s challenging climate, it’s clear that businesses can no longer continue to bury their heads in the sand when it comes to energy efficiency. The benefits are now clear to all, but if businesses are to truly reap those benefits changes need to be made, policies must be put in place and improvements must carried out and maintained. Those 80% of companies that cited energy management as a key driver for reducing costs, should really make their actions speak louder than their words if they are really serious about controlling spend and increasing the overall efficiency of their business – it could also significantly reduce the need to make cuts elsewhere in the business, which in most cases would only damage an organisation’s performance.

BSI Group

In an Energy Efficiency Assesment report issued on Tuesday (click here to see report) New York State provided very interesting recommendations that could move the Empire State to the lead position in the US as far as a clean energy economy is concerned and it makes financial sense as well.

The plan recommends energy efficiency as a major focus for commerce and industry and a new state building code that would also require stricter energy efficiency. Not only will this bring environmental benefits but the costing is a no-brainer, as the return on investment in energy efficiency is substantial – to quote the report:

“The 2008 Optimal Report concluded that opportunities for electricity end-use efficiency in New York are extensive and inexpensive compared with available supply options. Results of the study estimate the State’s achievable potential through 2015 to be about 26,000 GWh, representing a reduction of approximately 14 percent from the forecast of electricity demand in 2015…….Programs that would capture this achievable potential would cost $7.2 billion in 2008 dollars over seven years, or an approximate average annual program portfolio budget of $1.0 billion. Net benefits to the New York economy would total $12.8 billion, including $20.8 billion in total statewide benefits and $8.0 billion in societal costs. The benefit-cost ratio of the electric efficiency measures is estimated to be 2.60, which means that the New York economy would capture approximately $2.60 in benefits for every dollar invested in efficiency.”

The report also highlights how the commercial sector has the greatest potential for energy saving and emphasised the main areas that can be affected, again to quote the report:

“Similarly, the end-users with the greatest efficiency potential for the commercial sector are indoor lighting, cooling, ventilation, and refrigeration. Within the commercial sector, the study concludes that the building type with the greatest energy savings potential is office space, which accounts for 33 percent of the efficiency savings opportunities. Finally, for the industrial sector, the greatest efficiency savings opportunities are in industrial process end-uses and indoor lighting.”

From my point of view it is interesting to see where they stress the efficiencies can be made, all areas where I know the company I am associated with, Enigin PLC, have products to intelligently control energy use.

The report also focuses on the importance of advance meters, such as the Eniscope, to supply end-users with real-time energy consumption feed-back, the report states:

“By enabling customers to receive information regarding system costs in real time and to take actions to respond to higher electricity peak prices, AMI (Advance Metering Infrastructure) has the potential to reduce peak demands. In addition, the ability to monitor customer usage would improve a utility’s ability to measure the actual effects of energy efficiency measures.”

This is an important efficiency and money saver for many organisations. In Daytona, Florida, Bethune-Cookman University made savings of 43% after monitoring just one cooling station using an Eniscope advance meter, which identified areas where they were spiking their energy use and hence being penalised financially. The Eniscope enabled them to intelligently change usage patterns and make financial and energy savings, plus seeing reductions in maintenance costs.

I hope New York State will be able to put their recommendations into practice and provide not just a national lead but an international one as well.

It is time to get the facts and the myths about compact fluorescent bulbs — CFLs — to address the concerns, questions and rumors that seem to be everywhere these days.

And because I often hear from readers complaining that the CFLs they buy never last very long, I tried to find out the best ways to use the bulbs so they reach the promised lifetimes their manufacturers claim. Consider the following:

• Mercury: CFLs do contain about 5 milligrams of mercury. The bulbs do not emit mercury when they are being used. When putting them into lamps, hold the bulbs by their base and don’t force them into the socket.

• Breaking: The only way for the mercury vapor to escape the tube is if the bulb breaks. If that happens, ventilating the room for about 15 minutes will allow the gas to escape. You can then carefully scoop up the broken pieces, double-bag them and throw them out with your trash.

• Sources: The largest man-made sources of mercury are coal-fired power plants If you’re really concerned about the amount of mercury in our air, then, you’re actually better off buying CFLs than incandescents. Since CFLs use less electricity than incandescents, they actually reduce the amount of mercury getting into our environment.

• Disposal: To dispose of unbroken bulbs, it is recommended that you take them to a recycling center in your community. Contact your local municipal solid waste agency to find the locations of recycling centers near you.

• Hazards: There have been reports about CFLs causing fires, smoking and causing other hazards. While there has been little proof that bulbs caused these problems, you should make sure that the CFLs you buy carry the Underwriters Laboratories UL mark that show they have been tested for safety hazards.

• Lifetimes: Frequently turning CFLs on and off will shorten their lifetimes. For uses of about 15 minutes or less (such as in closets or stairways), use incandescent bulbs. For recessed fixtures, three-way fixtures, dimmers, outdoor use or other specialized situations, make sure the package says the bulb is appropriate for this use.

• Cost: Cheap bulbs probably won’t last as long or work as well as those with the Energy Star seal that ensures it meets strict federal standards. Low-quality bulbs often flicker and have short lifetimes.

• Savings: You will save money by using CFLs. It’s estimated that between 10 and 20 percent of the average home’s electric bill is for lighting. CFLs will last seven to 10 times longer than incandescents and use one-fourth of the energy to produce the same amount of light.

By Ken Sheinkopf, who is a communications specialist with the American Solar Energy Society.

British utility prices could rise by as much as 60% during the next 10-15 years according to the “Energy Market Scenarios” report produced by the Office of gas and electricity markets (Ofgem) a UK government regulator.

This story could be from any nation as every region has the same problems an we all need to be more energy efficient.

The report highlights the problem of being able to supply the needed power, and many countries face that problem currently. The challenges we face can be reduced by energy efficiency.

Ofgem report that, just in the UK, investment of over £200bn is needed in power-plants plus other energy infrastructures during the next 10-15 years to be able to avoid energy shortages and meet climate change targets. Consistencies of supply and energy security form two major concerns.

Many countries have to import energy, gas and electricity, meaning energy and gas supply is dependent on other government’s readiness and stability to keep the current flowing. This means that supply disruption across the world affects energy costs.

Ofgem’s report also highlighted that energy suppliers face a twofold challenge of renewing or replacing old power-stations, while also deal with increasing volatility in worldwide gas markets, hence they would likely be forced to raise bills to meet future supply demands and carbon goals.

We can have an impact on this right away by becoming more energy efficient. Energy efficiency reduces demand, easing the urgency for new power production plants, allowing more consistent supply while reducing green house gas emissions.

Energy efficient products and tools are also far cheaper than constructing more power-plants, also allowing retrofit of energy inefficient older buildings.

It is important that we start to use smart meters with visual displays to help us to see what we are doing, why we are doing it and what we are achieving.

In commerce and industry something more is needed, an advance meter like Enigin’s Eniscope which takes report energy data a step up from regular smart metering. The Eniscope allows very precise decision making, knowledge is power in this case. Decisions can be made by business owners based on what real-time and historical data. What to do and where energy efficiency steps can be made to reduce escalating energy bills.

If you can see what is going on then you can measure it and make accurate changes for the good. Commerce and industry can make solid financial decisions to help to increase or protect the bottom line and reach environmental targets.

It seems whatever we do energy prices will go up, but we can do something by becoming energy efficient and, although energy prices will rise, we will be able to lessen our energy costs, leading to a secure future energy-wise and a environmentally.