Locality Energy Action Group

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1 2012 Locality Energy Action Group Reduce Energy Costs and Lower Energy Consumption whilst cutting Carbon Emissions. Locality Energy Action Group Overview Geoff Berry Touchstone Energy Management Services February 2012

2 Contents Locality Energy Action Group... 2 The Problem... 2 Prices... 2 Demand... 2 Fuel Prices... 2 The Answer... 2 An Energy Buying Group How will it work?... 3 What is required?... 3 Green Deal!... 3 Energy Buying Groups Have a Proven Track Record... 3 Innovative Approach Smart Meters... 3 Too much trouble to move?... 4 The Process... 4 Energy Review... 5 Energy Management - Smart Metering... 6 Consumption and Energy Saving Equipment... 7 Heating and hot water... 7 Lighting... 7 Kitchens... 7 Refrigeration... 7 Voltage Optimisation... 7 Gas Burner Management Controls... 7 Burner optimisation... 7 Summary P a g e

3 Overview Locality Energy Action Group Mention the words energy costs today and you'll be met with a variety of responses, almost unanimously negative. There is a widespread perception amongst community organisations and indeed, the general population that energy costs are unreasonably high, if not downright excessive. However few people have a remedy even though it is the government s stated objective to lower energy consumption costs and thereby carbon emissions. THE PROBLEM Prices In truth the problem falls into two distinct categories, the first being the sheer level of charges. This seems to be an intractable problem and, whatever the government does or whatever initiative Ofgem undertakes, the results are always the same. No change. Furthermore, the seemingly inexorable rise in energy prices often runs counter to the overall international market movements. Demand The second problem is the actual level of consumption. Our experience in the community sector shows us that if community organisations are given the tools and assistance to lower their gas, electricity and water consumption then they are quick to act. There are two main areas where this is applicable: one is human behaviour and the other is the adoption of modern technologies and tools to reduce demand. Energy Prices 2011 brought exceptionally high price increases in both regulated electricity and natural gas. This has led to sharp increases with all but one of the big six suppliers so far raising their energy prices between 10% and 20%. THE ANSWER An Energy Buying Group. Most UK community organisations could benefit from cheaper gas and electric prices. Unfortunately, very few are in a position to access the potential of group buying, which is normally the preserve of large corporations or business groups. When pricing single businesses suppliers will price according to consumption. This makes it virtually impossible to obtain the best market rates for a single user. By joining forces with like-minded community organisations within Locality, it is possible to engage in the prime open market and achieve prices that only large organisations can obtain. The Locality Energy Buying Group initiative will place members energy consumption within a single portfolio 2 P a g e

4 How will it work? The scheme is predicated on obtaining sufficient consumption to enable access to the market. Most members will currently be in contract and these will be added to the group as and when their contracts end. The objective is to have all the members contracts start and finish on the same date. This entails placing the members on contracts until their start dates are harmonized. This can take up to 2 years, although improved pricing will be available from day 1. As facilitators of the scheme, Locality with its partners Touchstone Services will administer the group and handle the paperwork. Locality members need to provide us with their gas and electricity supply details so that the combined gross consumption can be calculated and a member profile generated. What is required? Initially, we require copies of recent gas and electric bills as well as letters of authority that enable us to contact the suppliers in order to get reliable consumption figures and contract end dates. We will then inform each member of the contract renewal dates. Once this has been done, the anticipated consumption figures are presented to the selected energy companies. Note: It is vital that the members submit their Termination Letters in due time as under the terms of the standard contracts in force in the UK, they will be rolled over without the opportunity to leave their existing supplier. Some 70% of UK businesses are currently rolled over and the rates are always higher than prevailing open market rates. Green Deal! First and foremost the main reason for joining an Energy Buying Group is for the cost savings. We are focused on the needs of our members; through strategic partnerships with electricity generators, the Locality Energy Buying Group will be able to secure low-cost electricity, and wherever possible will purchase from renewable or cleaner power sources. Energy Buying Groups Have a Proven Track Record At the moment, a single Buying Group in the UK is already successfully supplying 60,000 businesses with electricity. As well as supplying a reliable electricity supply we are committed to: Providing a fast and efficient hassle free transfer once you sign an electricity contract with the Locality Energy Buying Group we do everything for you. Delivering accurate energy usage information every month. Innovative Approach Smart Meters The Locality Energy Buying Group is facilitating the use of Smart Metering technology to enable our members to monitor and reduce their electricity expenditure an average member can reduce its consumption by 12.3%** As an organisation committed to reducing CO2 emissions, we recognize the significant benefits that Smart Meter technology can offer and we are therefore committed to making this available either gratis or at a subsidized rate to our members. 3 P a g e

5 Too much trouble to move? All too often people stay with their current supplier because it's the easiest option. We understand that there are more important things to do than talk to energy suppliers but by joining the group buying scheme you will enjoy the benefits without having to invest the time. The Process It is essential that we understand your current consumption and supply profile. This enables us to verify that you are currently on the correct meter profile and enjoying the best possible tariff. For example, if you use a substantial amount of electricity in the evenings and weekends, or during the night (from midnight to 7am), we will need to ensure that your meter profile is set up correctly to receive electricity at a much lower rate during these periods of reduced demand. Furthermore, we need to confirm whether you are a micro-business or a non-micro-business. This alone can impact the way you are dealt with by suppliers and needs to be established. There are a variety of criteria for this. Finally, we will need to establish the overall group profile. The better the group is structured, the better the rates that are offered by the suppliers. The good news is that with a little help from you, the member, we will carry out this work on your behalf. All we need are copies of your gas and electricity bills and a Letter of Authority. 4 P a g e

6 Energy Review By focusing on your basic operating expenses such as Gas and Electricity we make a direct impact on your bottom line. We accomplish this by minimising both your supply side pricing and your demand consumption. Our Energy Review procedure is based on a holistic approach to business energy usage and processes. It evaluates all aspects of each individual site and offers a one stop solution to achieve value for money. We do this by formulating an understanding of how much energy you use, where you use it and why. We concentrate on value for money, usage patterns and your tariffs. A typical review firstly focuses on the main areas of energy usage within your organisation. Gathering relevant data on your gas and electricity consumption allows us to firstly ensure you have accurate, real time billing and also confirm you are on the correct rates and meter types for your type of business. We will then examine the possibility of lowering your rates and make sure you are in the right contract for your business. In summary, we will: Look at current processes in use on site Analyse current meter set up Analyse: heating, air-conditioning, lighting and energy intensive processes Analyse current tariffs Install energy monitoring systems for up to date usage information 5 P a g e

7 ENERGY MANAGEMENT - SMART METERING Measure, Monitor and Manage your energy usage, online every day! According to the Carbon Trust, introducing smart energy meters can save you money. In 2010 they undertook smart energy metering trials and the results showed that smart energy meters, when combined with consumption data and energy-saving advice, gave potential average savings of over 12% a year. Here are some of the advantages of Smart Metering No more estimated energy bills Know exactly where, when and how you consume energy Up-to-date usage analysis Receive 100% accurate bills from your energy supplier Potential to move to improved tariff Get access to your own real-time energy consumption data Reduce your carbon footprint Claim financial incentives for cutting carbon Slash your costs Get in control and make Energy Count Meet environmental targets and ambitions and avoid future government penalties With the most comprehensive smart metering service available in the market today we offer: The provision, installation and servicing of approved smart metering technology for electricity and gas. A top-performing meter reading and data collection service A market-leading online reporting service for all your energy and carbon data ELECTRICITY SMART METERS GAS SMART METERS WATER SMART METERS ONLINE REPORTING 6 P a g e

8 CONSUMPTION AND ENERGY SAVING EQUIPMENT 30% of the energy consumed in the UK is wasted. This amounts to thousands of pounds that could be better spent in your organisation. By controlling the amount of energy you use and how you use it, you will save you a significant amount of money and help prevent climate change. Take action and start saving energy today! Heating and hot water Heating and hot water is a considerable cost which could account for up to 50% of your energy bill. (All businesses use energy differently) Lighting Having the right lighting is important, but don t let the costs run away from you. Lighting costs typically account for 20% of energy use but, because electricity is expensive, it could make up 30% of your total energy cost. There are several easy solutions to this problem. Kitchens Kitchens use a huge amount of energy, so there s the potential for considerable savings. Refrigeration Inefficient refrigeration costs businesses 1000 s every year. These appliances are working away in the background 24/7 and if they are not optimized for best performance they will be leaking electricity and electricity is nearly 3 times more expensive than gas! There is also a wide variety of energy saving equipment and technology available today. Voltage Optimisation With energy bills continuing to rise, the impetus for reducing energy costs has never been greater. Voltage optimisation has traditionally been utilised in industrial and commercial applications to reduce energy consumption and extend the lifespan of electrical appliances. There are a number of VO manufacturers offering solutions. However, care must be taken when selecting the most suitable product. By reducing the incoming voltage from the national average of 242V to an optimum level of around 220V, typical savings of around 9% can be achieved - certain types of businesses can obtain up to 17%. Gas Burner Management Controls - How do they save energy? Our system s objective is: to fire the least number of boilers, at the lowest possible temperature, for the shortest possible time, without compromising specified space temperature set points, or mechanical integrity. Specifically the boiler management system reduces energy consumption by: Burner Optimisation Utilising data supplied from internal and external temperature sensors (RF or hard wired), the unit will calculate the optimum plant start time. The same software process is also used in calculating the optimum off times (plant end time). Night set back can be incorporated as part of the overall optimisation function. The program manages night set back via optimised temperature reductions within variable time periods, as opposed to fixed day and night switching periods. Additionally, the software will lower the amount of dry cycling of the boilers which can offer significant savings. 7 P a g e

9 General Site Optimisation Lighting Optimisation Air Conditioning & Refrigeration Low Energy Halogen Lamps Energy Technology List Refrigeration Soft Start Motors SUMMARY Working with our partner, Touchstone Energy Management Services, the Locality Energy Action Group can help you to achieve the two magic aims which have proven so elusive, namely: reduce energy consumption and reduce energy costs Join the Locality Energy Action Group now! For further information please contact Natalie Hanley by at:- 8 P a g e

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