SAVING ENERGY, saving money

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1 SAVING ENERGY, saving money A BETTER SERVICE FOR YOUR BUSINESS

2 CONTENTS INTRODUCTION 04 TEN QUICK TIPS FOR SAVING ENERGY 05 KNOW YOUR ENERGY 08 HEATING 09 LIGHTING 12 HOT WATER 14 INSULATION 16 AIR CONDITIONING AND VENTILATION 18 CATERING 19 APPLIANCES AND ELECTRICAL EQUIPMENT 21 INDUSTRIAL PROCESSES 23 02

3 MOTORS 25 AGRICULTURE AND HORTICULTURE 27 MORE WAYS TO SAVE ENERGY AND MONEY 28 ENERGY WALK CHECKLIST 31 CLIMATE CHANGE LEVY (CCL) 34 FUNDING ENERGY EFFICIENCY 37 OTHER SOURCES OF INFORMATION AND ADVICE 40 HOW TO CONTACT US 44 03

4 INTRODUCTION Our aim is to provide you with the products and services which will help you run your business more easily and cost effectively. Whatever business you're in, you have the potential to save money on running costs, through careful energy management. And we re in the business of helping you. Many of the energy saving measures we can advise you on cost relatively little or nothing at all to put into practice, yet could significantly reduce your energy consumption. Large firms are also increasingly demanding their suppliers demonstrate green credentials. This guide highlights some easy, practical and largely inexpensive steps to take, to help you and your staff cut energy consumption and costs. 04 Here are just some of the advantages of being energy efficient: Reduced operating costs Profit potential could be increased Reduced rate of carbon dioxide emissions and global warming Increased productivity Contact our Energy Efficiency Advice team now on * for help and advice (more contact details on page 44).

5 TEN QUICK TIPS FOR SAVING ENERGY One of the first steps when looking to reduce the energy requirement of your business is to consider energy management techniques. If you want to put energy saving and money saving measures into action within your organisation as soon as possible, here are the quickest, easiest ways to go about it: 1. Measure how much energy your business is currently using by taking regular meter readings every week. It makes it easier to see when improvements are working, and how much you are saving. 2. Make someone the Energy Champion of your organisation so they can allocate staff certain responsibilities, e.g. making sure lights are switched off when staff go home. 3. Involve your staff. Let them help you to work out an action plan for making the company more energy efficient and therefore more competitive. 4. Monitor your progress and keep your energy management system under constant review. 5. Use low energy light bulbs. Replace standard fluorescent tubes with slimline tubes. 05

6 6. Install movement detectors to control lighting in areas not in constant or frequent use, such as toilets and meeting rooms. 7. Use time switches to stop unnecessary use of heating and lighting, and use thermostats to control temperatures. 8. Install draught-proofing around windows and doors to reduce heating costs. An insulated building can help reduce heat loss by up to 40%. 9. Don t leave electrical equipment, such as computers and photocopiers, switched on or on standby mode for long periods when not in use. 10. Order our range of FREE energy efficiency posters to make staff aware of these simple energy saving measures. Call us free on * (8am 6pm, Monday to Friday). 06

7 EDF Energy is a trading name used by EDF Energy Customers plc, Reg. No whose registered office is at 40 Grosvenor Place, London SW1X 7EN, incorporated in England and Wales. EDF Energy Customers plc is a wholly owned subsidiary of EDF Energy plc. The responsibility for performance of the supply obligations for all EDF Energy supply contracts rests with EDF Energy Customers plc. EDF Energy is a trading name used by EDF Energy Customers plc, Reg. No whose registered office is at 40 Grosvenor Place, London SW1X 7EN, incorporated in England and Wales. EDF Energy Customers plc is a wholly owned subsidiary of EDF Energy plc. The responsibility for performance of the supply obligations for all EDF Energy supply contracts rests with EDF Energy Customers plc. * Based on PC with an average demand of 117w per hour left on overnight for 14 hours, 6pm - 8am, 5 days a week, combined with a laser printer with an average load of 850w printing 6 pages per minute. * Based on 100w bulb left on for 8760 hours using 6.6p/kwh. EDF Energy is a trading name used by EDF Energy Customers plc, Reg. No whose registered office is at 40 Grosvenor Place, London SW1X 7EN, incorporated in England and Wales. EDF Energy Customers plc is a wholly owned subsidiary of EDF Energy plc. The responsibility for performance of the supply obligations for all EDF Energy supply contracts rests with EDF Energy Customers plc. EDF Energy is a trading name used by EDF Energy Customers plc, Reg. No whose registered office is at 40 Grosvenor Place, London SW1X 7EN, incorporated in England and Wales. EDF Energy Customers plc is a wholly owned subsidiary of EDF Energy plc. The responsibility for performance of the supply obligations for all EDF Energy supply contracts rests with EDF Energy Customers plc. * Source - Action Energy. TAKE THE NIGHT OFF Switching off your monitor in the evening can save enough energy to print over 3,000 A4 pages* BEHIND CLOSED DOORS Air conditioning or heating will work more efficiently if windows and doors are closed SWITCH OFF TO HELP SAVE ENERGY, MONEY AND THE ENVIRONMENT SWITCH OFF TO HELP SAVE ENERGY, MONEY AND THE ENVIRONMENT BRIGHT SPARKS A 100w light bulb left on for a year costs 50. Switch off lights that are not in use,* or switch to low energy light bulbs as they use 80% less energy WATT A SAVE! Offices in the UK could save over 2 million per year by taking some simple energy efficiency measures* SWITCH OFF TO HELP SAVE ENERGY, MONEY AND THE ENVIRONMENT SWITCH OFF TO HELP SAVE ENERGY, MONEY AND THE ENVIRONMENT 07

8 KNOW YOUR ENERGY In addition to our quick tips you will find some more extensive energy efficiency advice contained in this booklet. You can contact our Energy Efficiency Team on * The more you know about the energy your business uses, how it is used, and the way it is supplied and charged for, the easier it can be for you to save energy and cut costs. Electricity The electricity you use in your business is measured in units known as kilowatt hours (kwh). Each unit used represents 1,000 watts of electricity used for one hour. 08

9 HEATING Heating an office consumes large amounts of energy and overheating can have a dramatic effect on energy costs. Combination heaters Consider using combination heaters (storage and convector) for offices and areas which are used regularly, and convector heaters with appropriate controls in offices and areas used only for short periods. Portable heaters If there are portable heaters in use it could mean that heating sensors and thermostats are not set at the right level for staff or customer comfort. If they are needed in certain areas or at certain times, introduce a system for booking in and out to control their use. Frost protection If your heating system has a frost protection thermostat to reduce the risk of pipes freezing, make sure the sensors are not set too high. This is best done by a specialist, or the person who maintains your heating system. 09

10 Radiator valves Fit Thermostatic Radiator Valves (TRVs) to individual radiators, so that each room or area can be heated as required. Reducing the temperature by just 1 C can reduce overall heating costs. TRVs cost approximately 8 each (excluding installation). Pre-heating rooms When pre-heating large areas, remember to switch off any mechanical ventilation first, to avoid unnecessary loss of heat. High-ceiling areas Rooms with high ceilings will have warmer temperatures at ceiling level than at floor level. Use a fan to push the heat down, or consider using radiant type heaters, such as quartz linear heaters. Replace mechanical thermostats If there is a problem maintaining a constant temperature in certain areas, this could be due to an old, mechanical thermostat. Electronic models are quicker and more accurate at responding, and therefore help to reduce overheating problems. Heating and air conditioning sensors Check to see if these are in the best location. A poorly positioned sensor could actually increase energy costs. For example, if a sensor is over a heat source then air conditioning will operate longer and use more energy than necessary. 10

11 Heat recovery options Heat wasted through ventilation, catering, cleaning or industrial processes can sometimes be re-used to lower energy consumption. There is a wide variety of methods available to recover waste heat. For professional advice see Other sources of information on page 42. Infrequently used areas Use a combined thermostat/timer/occupancy sensor to control heating in areas such as meeting or conference rooms. These controls cost around 30 (excluding installation) and can be used with both radiator systems and electric heating systems. Gas systems Use condensing gas-fired boilers in new installations and when replacing existing boilers as they are much more energy efficient than conventional boilers. Also, use modular gas boilers with a step controller in larger installations and ducted gas warm air systems in large areas with high ceilings. 11

12 LIGHTING For many businesses, lighting can account for a large proportion of the money spent on electricity. Partial lighting Check that full lighting is not being used unnecessarily outside normal business hours. For example, cleaning staff may only need partial lighting when working. Light switches could be colour coded for different activities. Display lighting Lighting is energy intensive and is often over used. Ensure it is switched off when not needed, or install a timer. Low energy light bulbs Where possible, change standard light bulbs for low energy light bulbs. They provide the same amount of light, but use only 20%** of the electricity and last up to 15 times longer. Costs vary, but you can expect to pay 5-9 per bulb. However, over its lifetime, each energy-saving bulb can save you up to 50 in running costs. In addition, maintenance costs can be reduced due to their long life. **For example a 20W low energy light bulb will provide the equivalent light output of a standard 100W light bulb. 12

13 Fluorescent lighting Switch to slim 25mm (1 inch) fluorescent tubes which use 8% less energy than 38mm (1.5 inch) tubes. Each tube costs between 2.00 and 3.50 and can save you approximately 1.50 per lamp per year (only suitable for fittings with a starter). Lighting levels In rooms which receive a great deal of natural light, think about using light-sensitive sensors to cut down on artificial lighting. These cost around each (excluding installation). External and security lighting If you use outside lighting, consider how it is controlled. For example, if lighting needs to be left on constantly, sodium lighting is the most cost-effective option. High frequency lights During refurbishment, consider replacing conventional fluorescent lighting with high frequency units. Although expensive when compared with traditional fluorescent lighting, they use less energy and provide flicker-free lighting, which can be dimmed if required. 13

14 HOT WATER Taps Simply by changing from standard bib taps to spray taps, you can reduce hot water demand by as much as two-thirds, and save on your energy bills too. Optimum temperature Limit the temperature of stored hot water for hygiene and catering purposes to 60 C (but no lower, for safety reasons). At higher temperatures more heat is lost through the insulation on the storage tank. It s not always a straightforward job to alter the settings, so you may need to call in a heating engineer. Storage In older water systems it s not uncommon to find there are excessive amounts of hot water left at the end of each day. This unnecessarily increases running costs. Check to see if the amount of hot water stored can be reduced. If there are a number of storage vessels, can any be valved off? Seek advice from a heating engineer if you are at all unsure. For energy efficiency and economy, it is best to heat water at the point of use, with small under-sink storage or over-sink instant water heaters. If volume requirements are higher, use insulated hot water storage cylinders, with two immersion heaters one operating on Economy 7 overnight, and one for daytime top-up. 14

15 Insulation Hot water pipes and storage tanks should be adequately insulated. Simple lagging jackets and pipe insulation are readily available for smaller systems. A lagging jacket should cost around 8-10, whilst pipe lagging starts at 30p a metre (the larger the pipe diameter, the higher the price). Carry out a survey of the system and make a note of any areas with no insulation or where insulation needs to be replaced. Reduce demand for hot water Combining spray taps with timed flow units reduces water usage. A less expensive option would be to fit restrictors to standard bib taps to reduce flow rate. If you are not sure what type of taps you have, consult a trained plumber. Gas systems In buildings where the hot water requirements are high, it is economical to use a gas-fired system with hot water storage cylinders. It is also far more energy efficient to use a dedicated boiler for providing hot water which can be used in the summer months, rather than using a large boiler capable of meeting both the space and water heating needs of the building throughout the year. 15

16 INSULATION Insulation is a highly effective method of reducing heat loss from buildings. Draught-proofing This can be a simple DIY job to keep costs down. A metre of self-adhesive window draught-proofing strip should cost approximately 15-25p, depending on size. If you buy in bulk from a trade supplier costs will of course be much lower. Loft insulation should also be checked, to see if it meets the minimum recommended thickness of 250mm (10 inches). 100mm-thick insulation can be bought for around 50p a metre. Automatic door closures Doors which open to the outside for example, the main entrance, reception, car parks, delivery areas let in a great deal of cold air. Fitting automatic door closures will help reduce heating and air conditioning costs by reducing air movement between different areas. Door closures vary from simple springs to hydraulic units. A spring-type closure should cost around 10. Plastic door curtains in the external doorways of loading bays and workshops are also effective. 16

17 During refurbishment This is the ideal time to examine ways of saving energy. For example, much heat is lost through large windows and glass walls, so consider reducing the glazing area with infill panels. Double-glazing doors and windows with a glass which limits heat loss (lowemissivity glass) will reduce the amount of heat escaping from your premises. A draught lobby prevents entranceways and reception areas opening directly to the outside elements. Cavity wall and loft insulation, or external roof insulation for flat roofs, are all effective energy saving measures. 17

18 AIR CONDITIONING AND VENTILATION Air conditioning and ventilation are essential for optimum working conditions. However, the potential for conflict with heating systems means their use should be carefully considered and monitored. Heat generating equipment If possible, position heat-generating equipment such as photocopiers, vending machines, factory machinery and display lighting away from air conditioned spaces. Where this is not practical, try isolating them using a curtain or by fixing an extractor. Air-flow rates Fans can consume a great deal of energy, so you need to look for ways to reduce air-flow rates. For example, if all or part of your business premises has recently changed from smoking to non-smoking, the system could be adjusted to reduce the air-flow accordingly. The off switch Mechanical ventilation and extraction can add significantly to your electricity bill not only in running costs but in air conditioning and heating costs too. Ensure it is switched off when not required. 18

19 CATERING Simply ensuring the right size saucepans are used on burners or electric plates, so that the pan covers the hob completely, could reduce cooking costs for no capital outlay. And there s much more that can be done, for even more savings. Pre-heating Staff should avoid warming up cooking equipment too early. Label equipment with recommended or required warm-up times to minimise the amount of time they are left running idle. Choosing appliances When replacing fridges, freezers and dishwashers, choose energy efficient models. Consider the variable demands placed on the kitchen using one or two smaller appliances, such as deep fat fryers, may be more energy efficient than using one large one. Your purchasing consultant or supplier should be able to offer you advice. 19

20 Refrigeration Make sure there is adequate ventilation at the top and back of small refrigeration equipment, and that the coil is cleaned regularly to remove dust and fluff. Energy consumption will increase if the heat cannot be dispersed. The minimum clearance will usually be specified in the instruction manual. If not, contact the manufacturer for guidance. Hot water boiler vs kettles If staff use kettles frequently to make hot drinks, much of the boiling water is never used. You could avoid this by installing a permanently plumbed-in, well insulated, hot water boiler instead. 20

21 APPLIANCES AND ELECTRICAL EQUIPMENT The simplest step you can take to reduce energy costs from electrical appliances and equipment is to encourage your staff to turn them off when they re not needed. We have a range of FREE energy efficiency posters available to encourage staff to carry out these simple energy efficiency measures. To order you can contact our Energy Efficiency Team on * (8am 6pm, Monday to Friday). Energy efficient office equipment Check if there are any energy saving modes which can be enabled on your IT equipment. You can read the manual or ask your office equipment supplier to find out. For example, most new PC monitors will power down while the computer is not being used, but the computer s settings may need to be adjusted for this to work. When buying or leasing equipment, always ask about energy efficient models. Many photocopiers and printers have power saving features. 21

22 Specialist equipment Make sure that any specialised electrical equipment you use is set up to run as efficiently as possible. Check the manuals or consult the manufacturers or maintenance engineers. Uninterruptible Power Supplies (UPS) UPS are designed to maintain the power to equipment if the electricity fails. They are often used to supply computers where vital information could otherwise be lost. It is important the UPS are sized accurately, as excessive capacity will increase running costs. 22

23 INDUSTRIAL PROCESSES Many different electrical processes are used in modern industry, including heating by: Direct and indirect resistance Short, medium and long-wave infrared radiation Induction processes Dielectric, microwave and ultraviolet This wide variety of processes means that it is better to get expert efficiency advice about them. You can make major savings by choosing the best production method in the first place. You can also recover the cost of upgrading or installing new equipment to achieve energy efficiency in industrial processes, in a number of ways. 23

24 These include: Increased productivity Better quality products Fewer rejected end products Lower energy costs Look carefully at the overall cost-effectiveness of each scheme before you install new equipment. You can also make further savings, often at a low cost, with the equipment you already have, by fitting devices such as time-switches, thermostats, and photo-electric cells. These save electricity by making sure it is only used when it is needed, or by controlling temperatures accurately. 24

25 MOTORS Saving energy using motive power needs careful consideration, to ensure that the actions taken will result in real energy savings. This is especially important when changing an electric motor. As well as making sure the motor is the correct rating and duty for the task, it s worth considering the following before changing a motor: Ventilation Make sure the motor is kept clean and has an air-flow free of rubbish or stored material. Filters Clean any filters on the motor or driven equipment regularly, especially in food production or spray shop establishments. Type of drive It may be possible to change the drive method to reduce energy consumption. Altering gear ratios and the type of lubrication may also be beneficial. 25

26 Regular maintenance It is important that belts, chain tensions and the motor itself are checked regularly. Phase balancing Motor efficiency can be impaired if one phase of the supply suffers a voltage drop due to a badly balanced load. Reducing motor loads Reducing the distance between the motor and the application can reduce load. Increasing duct sizes or pipe diameters will also affect motor loads, reducing motor speed and power consumption. 26

27 AGRICULTURE AND HORTICULTURE A large number of our business customers are involved in agriculture or horticulture. Both of these activities have processes which use energy in unique ways, from using artificial lighting for plant propagation, to ventilation of stock-rearing buildings. It is important to ensure that energy used for these purposes is properly controlled. Ensure all controls are correctly labelled and that staff are educated in their use. 27

28 MORE WAYS TO SAVE ENERGY AND MONEY Choose the most economical rate Our tariffs are designed to give you choice and flexibility, so that you can use energy in the most cost-effective way for your business. You may be able to save money simply by making sure the tariff you are on reflects the hours and nature of your business. You can contact our dedicated business team on * (8am 6pm, Monday to Friday. 9am 12pm, Saturday). Take an energy walk A walk around your premises at least once a month will help you to identify problems or check that energy saving measures you put in place are being implemented. To help you, we have included a basic checklist on page 33 of this guide, but you may want to add your own items. Check for possible improvements On your first energy walk you should assess where improvements can be made. For example, are the windows draught-proofed? Does the heating system need to be replaced with a newer, more efficient one? 28 Take a checklist with you and look out for such things as equipment left on unnecessarily, air conditioning being set too high and windows left open while the heating is on.

29 Check that action has been taken On subsequent walks you can check that the potential improvements you spotted have been carried out. Monitor comments If you receive a number of complaints about the heating,air conditioning or hot water being uncomfortably hot, make a thorough investigation of the relevant system. There may be a fault or it may even need to be serviced or replaced. Involve your staff Use staff meetings and training to make staff aware of any energy efficiency measures you decide to implement. Listen to their suggestions or comments, as they may raise issues you had not considered. Set energy targets for staff and, using meter reading information (see overleaf), post progress charts in staff rooms. Tell them how much these savings mean in financial terms. You might even think about offering them an incentive for helping to improve efficiency. 29

30 Ask for an Energy Audit An Energy Audit or Survey is a cost-effective way to get expert advice on where you can make energy efficiency improvements throughout your business. For more information on Energy Audits, contact Action Energy. Their details can be found on page 42. Read meters regularly Take regular meter readings and keep records in graphical form, so you can easily see any anomalies in energy usage. You can use these records for the progress charts to show staff how their efforts are making a difference. If there is a sudden increase in consumption, for no apparent reason, you should investigate immediately. It may be something as simple as a timer having been overridden, but if your only source of data is your bill, which may be estimated, energy wastage could go undetected for months. 30

31 ENERGY WALK CHECKLIST When you take your monthly energy walk around your premises, take a checklist with you and tick off each item. The contents of your checklist will depend on your business s individual circumstances, but you can use this checklist as a basis for your own. Alternatively, you may want to divide it up into a number of separate checklists for heating, lighting, equipment, etc and assign each one to a different key member of staff to check off each month. 31

32 CHECKLIST Lighting 1. Check that lighting is turned off in rooms or areas not in use, or reduced in rooms not fully used. Yes No 2. Check that good use is being made of daylight. For example, can blinds or other window coverings be pulled clear of the windows to allow in maximum daylight. Yes No Heating/Air conditioning 1. Check if any windows are left open while heating or air conditioning is on. Yes No 2. Check for use of portable heating equipment. This may indicate there is a problem with the existing heating system. For example, it may require servicing or the thermostat may need to be re-set to a higher level. Yes No 3. Check heating controls are set correctly. Yes No 32

33 4. Check the temperature in different parts of the building at different times of the day to ensure it is as expected. Yes No 5. Check all timers to see they are set correctly and have not been overridden. Yes No 6. Check that heating equipment, vents and grilles are clear and unobstructed at all times. Yes No Miscellaneous 1. Check water taps for drips. Yes No 2. Check equipment for obvious energy wastage: for example, equipment left on unnecessarily. Yes No 3. Check draught-proofing around doors and windows. Is there any fitted? Is it adequate? Does it need to be replaced? Yes No 4. Check any mechanical ventilation and extraction is switched off when not required. Yes No 33

34 CLIMATE CHANGE LEVY (CCL) Apply for Climate Change Levy exemptions Since 1 April 2001, the Government s Climate Change Levy has increased fuel bills for some businesses by an estimated 8-15%. The Levy is intended to encourage businesses to be more energy efficient, resulting in reduced greenhouse gas emissions, lower energy costs and a reduction of employers National Insurance Contributions. The UK has a target of a 20% reduction on 1990 emission levels by The increase on energy bills is not meant to adversely affect British business and will be offset by several measures. These measures include: A 0.3% reduction in employers National Insurance Contributions A number of standard exemptions for specified cases and a series of negotiated reductions for intensive energy users both of which need to be applied for. Remember that if your business consumes on average more than 33 units per day of electricity and more than 145 kwh per day of gas, it is likely that it will be charged the Climate Change Levy. If you do nothing to lower your energy consumption this will mean higher energy costs. 34

35 The Government has given the following cases full exemption, but you need to tell us if your business qualifies. Combined Heat & Power schemes Energy used as fuel and electricity exported from good quality CHP schemes is exempt from the Levy. For more information visit: Transport Energy used to propel trains with either passengers or goods is exempt from the levy. Energy used to transport passengers in non-railway vehicles is also exempt. However, exemption does not apply to energy used in transportation of passengers within a place of recreational, cultural, scientific or historical interest. Negotiated reductions to the Levy As part of the programme to introduce the Levy, the Government has negotiated agreements with numerous trade bodies and other representative organisations. These agreements provide for reductions to the Levy in exchange for qualifying businesses meeting specified energy saving targets, generally where there is an intensive use of energy. These have been decided on a case-by-case basis. 35

36 There are two basic rules governing whether a business is eligible for a discount. Firstly, it will need to be covered by a Climate Change Agreement negotiated with the Government. Secondly, it will need to commit to achieving the energy reductions specified in the agreement. The reductions negotiated on the Levy are at a standard rate of 80% for the qualifying energy but may vary according to the targets agreed with each trade association. An entitlement of up to a maximum of 80% relief has been negotiated for the majority of Energy Intensive Users, but some sectors may only be eligible for a lesser percentage relief. The 50 major areas currently covered by Climate Change Agreements are listed on the Department for Environment, Food and Rural Affairs (DEFRA) website We suggest you contact your trade association for full details. 36

37 FUNDING ENERGY EFFICIENCY For many energy efficiency improvements it should be possible to obtain internal funding given the significant benefits available, often at no or low cost. However, energy efficiency will always be competing with other potential investments; this section summarises some of the opportunities available to improve the financial case for an energy efficiency investment. Grants and Low-cost Loans Grants, generally from public funds, are sometimes available to assist with the capital costs of an energy efficiency investment. Low-cost or interest free loans for energy efficiency investments are also sometimes available, particularly for SMEs. 37

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