DATE; 14th March 2011

An energy expert has warned Tees Valley business leaders that corporate giants are putting pressure on companies in their supply chains to become greener.

Paul Reid, a director of 3e (Consultancy), highlighted the issue as part of an executive briefing, supported by Henderson Insurance Brokers and Latimer Hinks Solicitors, on the subject of energy costs for businesses.

Mr Reid also talked about emerging practices, current trends and the use of Government-backed programmes to help companies cut their carbon emissions and their energy bills.

Mr Reid, speaking at the event held in Stockton, said: “Tesco has already notified its vast army of suppliers of the need to ‘green’ the supply chain.”

He added that other large corporations were following suit and now insisting that suppliers make firm commitments to reduce their carbon footprint.

Mr Reid stressed: “High energy bills are an issue that is not going to go away and are a subject that needs to be on companies’ corporate agendas. Businesses have got to target their energy consumption and look at long-term, sustainable cost-effective solutions.”

Installing hi-tech heat pumps in the roof to circulate excess heat around a building, intelligent lighting that dims automatically when the sun shines and that turns on and off depending if there are people in a particular area, as well as improving insulation, can all significantly help reduce energy usage.

Mr Reid used the example of a furniture retailer that is now achieving annual energy savings of £50,000 with its investment in energy saving systems at its superstore being recouped in less than five years.

Jonathan Willett, a director at Henderson insurance Brokers Teesside, said: “Henderson Insurance Brokers, which acts for a wide range of sectors, is committed to supporting the local business community by being involved in initiatives that inform and expand business leaders’ knowledge.

“The cost of heating and lighting has risen substantially during the last decade and this trend shows no signs of abating. The data and advice from this executive briefing will prove invaluable to those who attended as they formulate plans to cut down on their energy consumption.”

Neil Stevenson, a Partner at Latimer Hinks Solicitors, said: “Current high energy costs can significantly eat into a company’s profits and, therefore, it makes economic sense for companies to consider methods to reduce energy consumption.

“It has been very beneficial for Tees Valley business leaders to learn about emerging energy saving practices, government-backed programmes and physical changes and site and premises management that can help reduce energy costs.

Chris Huhne the governments Secretary for energy and climate change has announced a “comprehensive review” of the the Feed in Tariff Scheme which is intended to promote self generated electricity. Changes will apply only to new applications following the review in April 2012.

“Large-scale solar installations weren’t anticipated under the Feed In Tariff scheme we inherited and I’m concerned this could mean that money meant for people who want to produce their own green electricity has the potential to be directed towards large scale commercial solar projects” Chris Huhne (The Financial Times)

The Feed in Tariff has created a lucrative opportunity for private investors and businesses to benefit from the Governments payments for self generation. This has lead to an increasing number of large scale arrays being installed yielding between 8-12% returns on investment. The governments view is that the payments should have been targeted towards self generation on a domestic scale. The indications are that the spending review will weigh the FITs in favour of domestic installations effectively ending the opportunities which are available for investors.

“If the government is going to meet the carbon reduction targets which have been set they should actively incentivise businesses to invest in large scale arrays, as there are fewer domestic residences with the roof space or finance required to purchase solar PV systems.
This announcement should focus the intentions of any business interested in investing in solar PV as this statement suggests there is only a 14 month window in which to really benefit from the scheme. The fact is that without FITs solar PV is not an efficient way for a business to tackle rising energy costs and smarter ways of lighting and heating your premises should be the priority”
Nathan Lamey 3e (Consultancy) Ltd

Mr Huhne said he would reassess all aspects of the feed in tariffs, including the eligibility of technologies. He pledged to complete the review by the end of this year and leave the tariffs unchanged until April 2012. The Government has set aside £400m for the scheme; however this will be cut by 10% by 2014-15.

Energy efficiency expert Paul Reid has called on Minister Grant Shapps to place more emphasis on the retro-fitting of existing business premises if the UK is serious about meeting its long-term CO2 emission targets.

Housing Minister Mr Shapps has confirmed that the target date for all non-domestic new builds in the UK to reach zero carbon standards is 2019.

To help achieve the standard the Government will introduce the Renewable Heat Incentive in April that will reward those that generate their own heat from renewable sources such as ground source heat pumps, biomass and solar thermal. This follows the introduction of the Feed-In Tariff last April which similarly rewards business for generating their own electricity via solar panels or wind turbines.

However, according to Mr Reid, a director of 3e (Consultancy) based in Staffordshire, a big issue that needs to be addressed is making the UK’s existing buildings more sustainable and eco-friendly.

Mr Reid said: “While the 2019 target and initiatives such as the Renewable Heat Incentive scheme are to be commended, more needs to be done if the UK is to meet long-term C02 emission goals.

“Buildings that already exist make up the majority of the country’s commercial property stock and ways of encouraging owners to environmentally upgrade these properties are vital if we are serious about cutting the country’s carbon footprint.

“Mr Shapps and his colleagues need to focus on existing buildings if the UK is to make sufficient progress in meeting its carbon reduction ambitions.”

Under the 2008 Climate Change Act, a target has been set to reduce the country’s greenhouse gas emissions by 80% by 2050 compared to 1990.

Buildings where people work account for nearly a fifth of the UK’s total carbon emissions.*

Mr Reid said: “Building regulation specifications mean that new construction projects are planned with energy efficiency at the heart of their design.

“However, by 2050 older buildings will still far outweigh the number of new developments. It is likely that 60 to 70 per cent of all commercial buildings that there will be in 2050 are already in existence today and this will certainly impact on climate change targets.

“To keep the 2050 target on track, the spotlight needs to be turned on existing business premises to ensure they are updated with equipment to reduce their carbon footprint.”

Commercial advantages following a green overhaul of existing commercial premises, from warehouses to factories to retail units, include helping attract tenants and a substantial cut in energy costs for the buildings’ occupiers.

A green retro-fit can include the installation of energy saving features such as hi-tech heat pumps in the roof to circulate excess heat around the building and lighting that dims automatically when the sun shines and that turns on and off depending if there are people in a particular area.

Mr Reid said: “Operational costs are under intense scrutiny by businesses due to the current economic climate with the cost of any project having to be weighed up against the potential savings.

“In my experience, the return on the investment of fitting buildings with energy saving features makes good economic sense.

“Companies, for example, that install building management systems can expect to save a third on both heating and lighting bills.”

Energy efficiency projects deliver an average return on investment (Internal Rate of Return) of 48% – some four times the minimum level demanded by most senior finance officers.*
3e (Consultancy), which is owned by Mr Reid and fellow director Nathan Lamey, is based in Hill Ridware, near Rugeley in Staffordshire
ENDS
CONTACT: Helen Logan on 01325 363436
Notes to editors:
*According to the Carbon Trust.
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3e (Consultancy) Ltd helps businesses and organisations reduce their energy consumption and reliance on fossil fuels, helping the client become more energy efficient, reducing their costs and carbon footprints.

3e is a Carbon Trust accredited consultancy and assists its clients to secure interest free loans offered by the Trust for energy efficiency projects.

3e provides:
• Energy efficiency consultancy/auditing
• Project funding
• Project Management
• Project Delivery

For more information log onto
www.3eco2reduce.com

Environmental experts at 3e (Consultancy) have drawn up a New Year’s Resolution energy-saving checklist to help businesses with ambitions to cut expenditure and become greener in 2011.

While there are payments that a business has little control over, one that companies can influence is their energy consumption by looking at systems that reduce their use of power, according to Paul Reid, a director of 3e (Consultancy).

Bills for heating and lighting have soared during the last decade and this trend looks set to continue as power companies pass on the cost of massive infrastructure investments.

Mr Reid said: “Ten years ago a typical small business would be paying about 6p / kWh for electricity, today that will be about 10p with some paying considerably more. For example a £30,000 annual bill is now £50,000, an increase of 66%.”

3e’s New Year’s Resolution energy-saving checklist comprises:

• 20% of all UK electricity is consumed in lighting. Upgrading to intelligent lighting systems can more than halve electricity bills. Energy efficient lighting uses up to 75% less energy for the same light levels and lasts ten to 15 times longer dramatically reducing maintenance costs

• 30% of the energy consumed in the UK is wasted, costing businesses millions of pounds in lost revenue every year. A 20% cut in energy costs equates to a bottom line 5% increase in income

• Ageing heating and lighting systems become inefficient further adding to operating costs, Carbon Trust interest free loans enable upgrading with substantial savings from increased efficiencies and rapid payback on investment

• Installing a combination of thermal efficient ceiling tiles and energy efficient lighting can save an average of £50,000 a year, depending on the type of business

• Companies that install building management systems can expect to save a third on both heating and lighting bills

• Simply ensuring premises have adequate loft insulation can eliminate 30% of a building’s heat loss

Mr Reid, whose business is based in Hill Ridware, near Rugeley in Staffordshire,  added: “The end of one year and beginning of another is a time when people make New Year’s Resolutions.

“It makes good economic sense for businesses to resolve to look at ways of saving money as 2011 approaches including looking at becoming smarter about how they use energy.

“There are a range of cost-effective measures that companies can embrace to become more energy efficient, which in turn contributes substantially to their bottom line by trimming costs.

“These measures can also improve a company’s reputation with their peer group and customers by boosting their corporate social responsibility credentials as they reduce their carbon footprint.

ENDS

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http://www.recognitionpr.co.uk/journalistarea-story.asp?id=9420

CONTACT: Helen Logan on 01325 363436

Notes to editors: 3e (Consultancy) Ltd helps businesses and organisations reduce their energy consumption and reliance on fossil fuels, helping the client become more energy efficient, reducing their costs and carbon footprints.

3e is a Carbon Trust accredited consultancy and assists its clients to secure interest free loans offered by the Trust for energy efficiency projects.

3e provides:

• Energy efficiency consultancy/auditing
• Project funding
• Project Management
• Project Delivery

For more information log onto

www.co2reduce.co.uk

We have helped one of the country’s leading haulage companies enhance its green credentials andl cut overheads by £140,000.

http://www.recognitionpr.co.uk/journalistarea-story.asp?id=9147

See what Cookes Furniture has to say about our work.

http://www.broadbandtvchannel.co.uk/clip.asp?clipid=596

Here’s some research we released to coincide with Energy Saving Week (October 25 to 31).

http://www.recognitionpr.co.uk/journalistarea-story.asp?id=9066

We have completed a special project to devise innovative tailor-made energy saving solutions that will see a family-run furniture retailer save more than £50,000 a year.

http://www.recognitionpr.co.uk/journalistarea-story.asp?id=8952