Energy Smart Pack. Small steps to big savings

Transcription

1 Energy Smart Pack Small steps to big savings

2 Introduction This section sets out some valuable energy-saving measures. This section sets out some valuable energy-saving measures. To survive and succeed in a fiercely competitive market, you need to run your business as efficiently as possible, maximising your productivity and performance and trimming costs across the board. One of the easiest ways to achieve significant savings is to cut down the amount of energy you use. The increasing impact of global warming has emphasised the importance of using energy more effectively. Legislation aimed at improving energy efficiency and encouraging renewable forms of energy is driving the pace of change, forcing companies to become even more environmentally aware. ScottishPower is committed to helping your business succeed in these challenging times: bringing you electricity and gas at competitive rates; offering a range of business services that focus exclusively on your business; working to achieve higher standards in energy efficiency for your ultimate benefit; providing clean, sustainable energy through our hydro electric generating stations, our investment in generation technology and an expanding wind farm portfolio.

3 04 Get Energy Smart Small Steps to Big Savings 05 Contents Get energy smart About the Energy Smart Pack This section sets out some valuable energy-saving measures. This new, revised edition includes: Get Energy Smart 05 how to save money by using your lighting, heating, buildings and electrical equipment more efficiently. Case Studies 18 companies profiting from energy efficiency and conservation. The Climate Change Levy 21 and Renewables Obligation their impact on your business. Grants and Incentives 26 the latest information on what s available to companies and business organisations. Useful Contacts and Links 31 where to go for more assistance and online information. For more detailed information on lighting, heating, buildings and equipment please refer to ScottishPower s Energy Efficiency Advice for Non-Domestic Customers Code of Practice. The code also covers energy efficiency measures related to hot water, gas appliances, boiler plants, air conditioning, compressed air, refrigeration plants, process plants and CHP plants. Energy Smart Lighting The cost of lighting your place of business can often be substantial, but it is one of the areas where sensible management can pay dividends. When considering lighting installations you should pay close attention to the types of lamps or luminaires and the control facilities needed. Lamps The table below illustrates how much light (lumens) different types of lamps give off for each watt of electricity used. Performance can vary dramatically. Tungsten (standard light bulb) Traditional Fluorescent Modern High Frequency Fluorescent Compact Fluorescent or CFL Luminaires 12 lumens per watt 67 lumens per watt 100 lumens per watt 70 lumens per watt Think about purchasing light fittings or luminaires with high quality reflectors. These ensure the maximum amount of light where you need it most.

4 06 Get Energy Smart Small Steps to Big Savings 07 Control Facilities Make sure that lights are switched off when they are not required. Arrange the wiring of lighting systems and switches so that you can easily control the lights to match the activity and natural lighting levels in a room. Consider installing devices to give you automatic control over some of your lighting. These include passive infrared detectors, photocells and time switches. Situation All the office lights are on because it is dark at the row of desks furthest from the windows. Lights are often left on in areas which are not used all the time (e.g. toilets, corridors, store rooms and canteens). Outside lighting is on 24hrs a day. No staff are on site from 10pm to 7am but car park lighting is on all night. Lighting is fully on 24hrs per day because staff do not know which lights can be switched off and when and who should do it. Tip Rearrange or install additional light switches to allow banks of lights to be switched on and consider installing automatic controls. Fit passive infra-red presence detectors to switch on lights when rooms or desks are occupied. Fit photocells to switch on lights when it gets dark. Use a time clock in conjunction with a photocell so lights are on from dusk until 10.30pm and 6.30am to dawn. Consider marking light switches which need to be on all the time e.g. Security lights leave on at all times. Intermediate lights needed for cleaning or replenishing shelves. Full lighting for office or shop trading hours. Make somebody responsible!

5 Small Steps to Big Savings 09 Energy Smart Heating Heating is often the major energy use for many small businesses. The amount of energy used depends on the efficiency of the heating system and the ability or otherwise of the building to retain heat. You need to select an appropriate heating system for the space to be heated, with controls that ensure the correct temperature and which can match operation to occupancy hours. Heating systems Standard commercial properties Gas-fired low temperature hot water (LTWP) is the most appropriate system for the majority of commercial premises. This is the gas boiler and radiator type system, installed in most homes. The system has good operating efficiency and is easy to control. However, it may not be appropriate for single offices remote from the main office area, or those that have abnormal occupancy patterns. Industrial buildings The most appropriate form of heating is dependent on the type of activity. Buildings with a large number of occupants performing sedentary work (say electronic assembly) may require warm air heating, whereas those used as stores or engineering workshops, or those which are poorly insulated may be better suited to radiant heating.

6 10 Get Energy Smart Small Steps to Big Savings 11 Controls Thermostats are used to control the room temperature achieved by heating systems. In buildings with a number of rooms, the thermostat is normally located in the coldest room on the system, with thermostatic radiator valves installed in the warmer rooms to prevent them being overheated. Modern programmable thermostats can also match the operation of the heating system to the occupancy patterns of the building. They combine temperature and time control functions, letting you set up individual programmes for each day of the week. You can also programme set-back temperatures (say for frost protection) in addition to the main heating temperature. Situation Heating costs rise by about 8% for each 1 C of overheating. Unauthorised portable electric heaters are expensive to run and may cause localised overheating. Electric heaters installed for frost protection in remote rooms like toilets often operate all the time. Convection heaters are often left on all night to ensure a warm room in the morning. Un-insulated pipework radiates significant amounts of heat, leading to losses or local overheating. Tip Check thermostat settings on a regular basis. The maximum recommended heating level for shops, restaurants and offices is 19ºC. Ensure heating system is capable of heating all areas adequately, so that these heaters are not needed. Install frost thermostats and ensure they are set correctly. Ideally, these should be tamperproof. Install a 7-day time switch to match heating to occupancy, setting it to allow a pre-heat period in the morning. Pipe insulation is cheap and easy to fit. Ensure all pipes are adequately insulated. (This will offer frost protection too!)

7 12 Get Energy Smart Small Steps to Big Savings 13 Energy Smart Buildings Insulation You can often make your biggest energy savings by reducing causes of heat loss in your building. If it is like a thermal sieve, the most efficient of heating systems will be unable to prevent costly warm air from escaping through open doors, badly fitting doors and windows or poorly insulated ceilings. It is essential that you tackle these issues first when considering replacing or upgrading your heating system. You may find that your current system may be adequate or that a smaller system is needed for a well-insulated building. Insulation is probably the most effective way to improve energy efficiency. It is extremely cost-effective, can be fitted by people without specialist skills and, once fitted, will perform satisfactorily for many years. Insulation can reduce the heat loss through an un-insulated ceiling by up to 90%. The insulation of floors and walls is just as important. While not strictly insulation, fitting double glazed windows in place of single glazing can halve the rate of heat loss. Ceiling Loss W/m2/ C no insulation mm insulation mm insulation 0.19 Double brick cavity wall no insulation 1.5 insulation in cavity 0.46 Single glazed windows 5.3 Double glazed windows 3.0 It is not important that you know these numbers but know how the heat loss changes; by having an un-insulated ceiling you may lose 12 times more energy than with 200mm insulation.

8 14 Get Energy Smart Small Steps to Big Savings 15 Draughts The loss of warm air through open doors and badly fitted doors and windows can be considerable. You need to carry out routine checks of doors and windows and make sure that appropriate maintenance is carried out. Modern double glazed windows not only reduce heat loss through glass, they also eliminate draughts through the design of mouldings and the use of seals. Many businesses need a loading bay to facilitate the delivery of materials and dispatch of finished goods. You need to pay particular attention to the design of your loading bay, preventing heat loss by installing rapid action doors, plastic strip curtains or similar equipment. Situation Warm air will naturally migrate from heated to unheated areas. External doors left open result in significant heat loss. Rooms with high ceilings have a large volume to heat and the warm air will rise upwards. The roofs of older industrial buildings, if constructed with a single skin of corrugated asbestos or iron, can have losses up to 15 times greater than a modern well insulated roof. Tip Consider fitting plastic strip curtains, swing doors or other suitable partitions between warm and cold areas. Fit spring-loaded door closers. Consider installing a suspended ceiling, which will reduce volume and can improve insulation levels. Where such roofs exist, give a higher priority to roof replacement than would otherwise be the case.

9 16 Get Energy Smart Small Steps to Big Savings 17 Energy Smart Electrical Equipment Situation Tip The running cost for electrical equipment often greatly exceeds the initial purchase cost. When purchasing new equipment, you need to compare the whole life cost of a basic model with an energy-efficient model. In common with heating and lighting, you can install simple devices which control the operating hours of equipment such as photocopiers and printers. Office Equipment A computer and monitor uses about 120 watts of electricity. While this may not seem a lot, ten machines in a small business left switched on all the time will use 10,500kWhs and cost approximately 945 per year. This cost can be cut to 236, simply by switching the computers off at the end of each working day and at the weekends. You can make further reductions by buying equipment, such as printers, photocopiers, scanners and faxes, that display the Energy Star mark. This indicates the presence of a sleep function, reducing energy consumption to 30 watts after 30 minutes inactivity. Recovery from sleep mode is virtually instantaneous. Motors An energy-efficient motor makes sound business sense. High efficiency motors are labelled EFF 1. To meet this standard an 11kW motor must be at least 91% efficient compared to 88% for a standard motor. Annual consumption and running cost based on 9p/kWh for a motor operating at full load eight hours per day, five days a week will be: High efficiency motor 25,143kWh 2263 Standard motor 26,000kWh 2340 This represents a saving of 770 over a ten-year life cycle. Ventilation systems for business premises often run 24hrs/day while occupancy is 8hrs/day. Vending machines for cold drinks and photocopiers often run 24hrs per day 365 days per year. Some cold drink vending machines are not often used. Ventilation systems for both commercial and industrial applications are often regulated by restricting the airflow using dampers. This wastes energy. Install 7-day time controls as part of your control circuits. These align operation to occupancy in the same way as heating controls. Often EFF 1 motors are no more expensive than standard motors. Just take time to ensure you get the lower running cost version. For systems used for temperature control consider using a thermostat in conjunction with the time clock. See above. For energy efficiency information on Gas appliances please refer to ScottishPower s Energy Efficiency Advice for Non-Domestic Customers Code of Practice. Check sales through vending machines. If this does not justify the energy spend, consider removing the machine. Consider regulating the flow using variable speed drives, which match production with demand by reducing the motor speed. This eliminates waste by reducing the energy consumed.

10 18 Case Studies Small Steps to Big Savings 19 Case studies Davidson Advertising and Printing Glasgow-based Davidson Advertising and Printing is a small business employing around 15 staff members. It has recently implemented many of the energy efficiency measures identified in this pack. The company is looking forward to seeing real returns through its energy savings over the coming months. Energy efficiency does not mean lower standards of heating or lighting, says Peter Davidson, Managing Director. It means obtaining the same or improved results using less energy at lower cost. It really is a win-win situation, Peter adds. Taking energy-efficient measures will not only bring reduced costs but also increased levels of staff comfort and improved environmental performance. Allied Distillers, Dumbarton The results of a year-long project to reduce energy consumption at Allied Distillers sites and those of the company s key suppliers has resulted in estimated savings of 2.6 million. In November 2000, Allied Distillers were awarded upward of 50,000 by the Department of Trade and Industry (DTI) Partnership Fund to develop Environmental Best Practice through Partnership. Together with the Scottish Executive, Scottish Enterprise, SEPA and seven of their key suppliers, they sought to improve their business and environmental performance. The measures employed to make the savings include improved energy management, water savings and reduced effluent. This partnership in energy efficiency and minimising waste can deliver tangible results to companies and have a major impact on their profitability. Allied Distillers have adopted a process that seeks to drive efficiencies right down the supply chain, engaging their suppliers in the energy efficiency process. The dramatic savings made show that real savings can be made right across the economy.

11 Small Steps to Big Savings 21 Climate change The Climate Change Levy and Renewables Obligation About the Climate Change Levy The Climate Change Levy (CCL) is a tax on the use of energy by business and the public sector. It was introduced on 1st April 2001 and is intended to encourage energy efficiency in business, reduce pollution and stimulate investment in new low carbon technology. The CCL is the direct result of the legally binding commitment made by the UK Government at the 1997 Kyoto Conference to reduce greenhouse gas emissions by 5.2% below 1990 levels by the period 2008/2012. The CCL affects most UK businesses. There are some exceptions, but, in the main, CCL will be charged on all energy that is subject to the standard rate of VAT. This covers supplies of energy to all non-domestic (business) customers. Some energy intensive users will be eligible for discounts of 80% on the levy, provided they achieve energy saving targets agreed between the Government and their relevant trade organisation. The CCL is applied at different rates, depending on the energy source. For example: Electricity p/kwh* Gas, coal, lignite and coke 0.159p/kWh* Liquid petroleum gas (LPG) p per kilo* Electricity is the most highly taxed because a high proportion of the energy content of the fossil fuels used to generate the electricity is lost in combustion, transmission and distribution. On average it takes around 2.6kWh of primary energy to produce 1kWh of electricity. *These prices were correct at the time of going to print, to check current prices please visit HM Revenue & Customs website.

12 22 Climate Change Small Steps to Big Savings 23 How is my business charged? As your energy supplier, ScottishPower is responsible for collecting the CCL from your company and passing it directly on to HM Customs and Excise. It is shown as a separate sub-total on your bill so that you can see exactly how much you are being charged. How will the CCL be used? The levy is intended to be fiscally neutral with all the revenues collected recycled to businesses in two ways: Through a reduction of 0.3% in Employers National Insurance contributions paid on employees earnings in excess of 84 per week; What is the net impact on my business? This will depend on your level of energy consumption and the number of employees. Businesses with a relatively high number of employees but low energy consumption are likely to be better off than businesses with high energy consumption and low staff levels. Are there any exceptions or exclusions? The Levy does not apply to: Energy generated from new renewable sources; Energy supplies below certain minimum levels those who use on average less than 33 units (kwh) per day of electricity and less than 145 units per day of gas; Non-business use by registered charities; Fuels used by the transport sector; Oils which are already subject to excise duty; Fuels used for the production of other forms of energy (such as electricity generation) or for non-energy purposes; Fuels used by good quality Combined Heat and Power schemes ( Good Quality CHP certified via the CHP Quality Assurance Programme CHPQA); Energy products that serve a dual purpose as a fuel and as a feedstock within the same process (such as coke in steel-making); Electricity used in some electrolytic processes (for example, chlor-alkali production and primary aluminium smelting). By making 150 million available to provide additional support for energy efficiency initiatives.

13 24 Climate Change Small Steps to Big Savings 25 Are there any other reliefs or exemptions? Discounts of 80% are available to energy intensive industries who have signed up to energy saving targets agreed between the Government and relevant trade organisations. Any site operating a process listed under Part A1 or A2 headings in Part 1 of Schedule I to the Pollution Prevention and Control (PPC) Bill is eligible to receive the discount. For more information on the climate change agreement process and on companies eligible to join an agreement, visit the Department of the Environment, Food and Rural Affairs (DEFRA) website: climatechange/uk/business/index.htm About the Renewables Obligation The Renewables Obligation Order came into force in April Its aim is to bring about a major increase in the proportion of renewable electricity generation, giving renewable generators a foothold in the market. The target for the new obligation is for all electricity suppliers in the UK to generate 4.3% of energy from renewable sources from 2003 and 10.4% from How will Renewables Obligation affect my business? The renewables obligation is a cost incurred by Electricity suppliers that they need to take account of when setting prices and include in these prices. As it is not a tax like the CCL, it will not be shown separately on your bill. The Government has estimated that the Renewables Obligation will increase the cost of electricity to UK consumers by around 0.5% each year until 2010, which adds up to a total increase of around 5%. This, they feel, represents a cost-effective way of reducing the UK s CO2 emissions and helping to avert climate change. How to lighten the impact of the Climate Change Levy and Renewables Obligation: Implement energy efficiency procedures to reduce the amount of energy you use in your business. Switch to renewable energy from ScottishPower. This is totally CCL-exempt. Don t Forget: Every 1 of energy you save = 1 of additional profit for your business. The horticulture sector is eligible for a 50% discount in the rate of levy for up to five years.

14 26 Grants and Incentives Small Steps to Big Savings 27 Grants and incentives This section lists some of the grants and incentives available to help your business improve its use of energy. Scheme Administered by Description Envirowise UK Government Envirowise is a Government programme offering free independent advice on practical ways to minimise waste and convert turnover into profit. UK meet their environmental legislation commitments and improve profits by minimising waste. Since 1994, it has saved British business more than 1billion. Every year, the Envirowise Programme helps thousands of businesses across the Carbon Trust Carbon Trust The Carbon Trust is funded by the UK Government and helps businesses save money and remain competitive by providing advice on energy efficiency and waste management issues. The Carbon Trust provides the following services for small and medium-sized companies, including not-for-profit and public bodies: A freephone helpline , offering free information and practical energy saving advice Online information at A free review of your business s energy use (which may include a site visit) Interest-free Energy Loans loans between 5,000 and 100,000 are available for small and medium-sized companies in England, Scotland and Wales where energy makes up a significant part of operating costs Free publications on energy saving measures across a wide spectrum of industries Free local events and seminars about energy saving opportunities.

15 28 Grants and Incentives Small Steps to Big Savings 29 Scheme Administered by Description Transportation Energy Saving Trust This programme offers advice and possible grant funding helping to establish a sustainable market for alternative, Clean Fuel Vehicles (CFVs) in the UK. These include vehicles running on natural gas (CNG and LNG), liquefied petroleum gas (LPG) and electricity (including hybrids). Fleet Advice: Solar Energy support Energy Saving Trust This scheme is aimed at stimulating the installation of solar (photovoltaic) panels on roofs and walls of houses, flats and public buildings. Substantial grants are available to SMEs and large organisations. Funding for the programme has been made available through the DTIs. Loan Action Scotland Energy Saving Trust Loan Action Scotland is funded by the Scottish Executive through the Scottish Energy Efficiency Office (as well as receiving funding through the European Regional Development Fund). The scheme provides interest-free loans of 5,000 to 100,000, so that companies can take action to reduce their energy bills. The loans can have a repayment period of up to five years, and are available to companies based in Scotland with up to 250 employees. For more information call: Enhanced Capital Allowance (ECA) Scheme Carbon Trust The scheme gives 100% first year capital allowances on plant and machinery that meet energy efficiency criteria. Currently eight categories are covered by the scheme. These are: boilers, pipe insulation, motors, variable speed drives, lighting, refrigeration, thermal screens and Combined Heat and Power (CHP) systems. New technologies will be added to the list as they are proven and technologies will be withdrawn from the list once they become standard practice.

16 Small Steps to Big Savings 31 Useful contacts and links ScottishPower You can find more information about all ScottishPower s SME business services on our website at: To obtain energy efficiency advice for business customers you can us at: energysmart@scottishpower.com or phone our free business energy efficiency information line on: UK Government s Environment and Energy Helpline (Envirowise) The Helpline is part of the service to provide free advice to companies throughout the whole of the UK on any business related environmental, energy or transport issue. It can help you to: Increase profits by reducing waste; Control transport costs; Improve environmental performance; Reduce energy costs; Cut water and effluent bills. It also provides information on environment-related legislation and how it affects your business. If you have a question about energy efficiency, waste reduction or any of the other issues listed above, or wish copies of publications, please contact the Helpline on Further information:

17 32 Useful Contacts Small Steps to Big Savings 33 The Energy Saving Scotland Advice Network Welsh Assembly Invest Northern Ireland The Energy Saving Scotland Advice Network is run by the Scottish Executive and is the main provider of energy efficiency advice to business and the public sector in Scotland. It can help companies show significant reductions in their operating costs and achieve improved profitability and competitiveness. It also helps to protect against the adverse impact of climate change. Simple energy saving measures can save as much as 20% of your total energy bill. The Energy Saving Scotland Advice Network has a lot on offer at no extra cost to you, including: Energy and environmental advice Free site visits by one of their consultants Interest free loan scheme (for SMEs) for energy efficient investment Comprehensive programme of seminars and workshops Energy efficiency advice for businesses in Wales is available from Flexible Support for Businesses. The contact details are: or phone: If you are based in Northern Ireland and require energy efficiency information or advice you can contact Invest Northern Ireland: Further information: You can them at: info@investni.com or energy@investni.com or phone: Impartial advice and guidance Presentations Signposting to other sources of help. For further information visit their website at Telephone:

18 34 Useful Contacts Small Steps to Big Savings 35 Carbon Trust The Carbon Trust was established by the Government to accelerate the take-up of low carbon technologies and practices by providing a range of programmes and initiatives to help public and private sector businesses exploit the commercial opportunities available. The overall aim of the Trust is to work with business, the public sector, Government and the research community to help the UK move towards a sustainable, lowercarbon economy. Further information: You can them at: info@carbontrust.co.uk or phone: The Carbon Trust manages a number of programmes: Action Plan a programme to accelerate the take up of existing energy efficiency and other low carbon technologies. It builds on the successful Energy Efficiency Best Practice Programme (EEBPP) by helping companies recognise the financial savings that can be made through energy savings. Further information: The Low Carbon Innovation Programme (LCIP) LCIP will be the principal vehicle for developing new low carbon technologies over the short, medium and long term. The programme is currently being developed with a launch planned at the end of 2002, subject to European Commission State Aids approval. The Enhanced Capital Allowance Scheme allows a business to claim 100% first year allowances on its investments in designated energy saving plant and machinery. This means that a business can deduct the whole of its expenditure on energy-saving plant and machinery from the taxable profits of the accounts for the period during which the expenditure took place. This scheme differs from the more traditional Capital Allowances which allow for only 25% to be offset each year. It is worth around 200 million in its first two years. Further information: Envirowise a programme that offers free independent advice to businesses on how to reduce their waste and increase profits, helping them meet their environmental commitments. Further information: For additional contacts and links please refer to ScottishPower s Energy Efficiency Advice for Non-Domestic Customers Code of Practice.

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