Stop Look Listen. Energy efficiency what businesses really think

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1 Stop Look Listen Energy efficiency what businesses really think The UK wastes 12 billion worth of energy every year 1 What s the impact on your business's bottom line? And what can you do about it?

2 A hot topic You can t pick up a paper or watch the news without encountering warnings about global warming, carbon emissions and prospective energy shortages. There s even been an Oscar-winning film on the subject. But what gets lost in all the talk about climate change, conservation and the moral imperative to save the planet is the solid business case for using less energy. The harsh reality is that high costs of energy are here to stay. It s vital for the business community to acknowledge and embrace this fact by carefully managing energy consumption. The impact on business As enterprises grow, their energy costs also tend to rise as a proportion of total costs, unless energy consumption is carefully managed. Being energy conscious is business efficient But that message isn t always getting through to Britain s smaller businesses. How do we know? We asked them In December 2006, British Gas Business commissioned Ipsos MORI, a highly respected independent research body, to conduct a survey on our behalf. Ipsos MORI s brief was to find out about the energy-related attitudes and actions of people responsible for buying energy for their businesses. The aim of the survey was to give us a better understanding of our customers existing and potential. After all, small to medium size enterprises known as SMEs are an important part of the UK economy. They employ around 12 million people and account for half of the UK s Gross Domestic Product of 303 billion. 2 Inside: What SMEs really think about energy efficiency How energy efficiency could save your business money Seven ways your business can save money What we re doing to help Get more advice from our free energy efficiency advice booklet By adopting simple, low-cost and often no-cost measures to reduce your energy consumption, you can save your business money. And you can do your bit for the environment at work as well as at home. Adrian Harvey Director Commercial Customers Key findings: As private individuals, most of us do make an effort to save energy Of those questioned, three in five admitted to being less conscious about saving energy at work than at home Most SMEs spend about 10% of their costs on energy a proportion that they expect to increase So, with high energy costs and the drive to minimise waste, it makes business sense to use energy efficiently and effectively the rewards can be significant Achieving certain simple energy efficient targets could see your Climate Change Levy 3 payments cut by as much as 80% 4 1 2

3 Stop What do SMEs really think about energy efficiency? During December 2006, Ipsos MORI polled 300 people responsible for buying energy for their companies. The survey covered a wide variety of sectors including: Services Retailing Manufacturing Financial Construction Mining / agriculture Transportation / distribution Leisure / entertainment Technology / media / telecoms All businesses ranged in size from nine or fewer employees to those that employ 100 people or more a good cross-sample of the SMEs that are representative of the backbone of the UK economy. Professional interviewers questioned the energy buyers during the course of detailed telephone sessions. 80% of SMEs fail to do energy audits On average, respondents estimated that they spend 8.3% of their turnover on energy. Though two thirds (66%) claimed to have reduced their energy use, only one in five (20%) had conducted an energy audit to find out what impact those efforts might have had or to determine how they could make additional. Nearly three in four (71%) said there was little they could do to cut their business energy costs further and over half said it would be difficult or fairly difficult for their business to improve energy efficiency. Some SMEs don t think they can save A more alarming result was that nearly one in five people (18%) did not agree that being more energy efficient would save their business money. The challenge for SMEs 71% 56% 59% 50%+ said there was little they could do to cut their business energy costs further recognised that they needed help to make their operations more energy efficient are less conscientious about saving energy at work compared to at home said it would be difficult or fairly difficult for their business to improve energy efficiency Go green and get lean SMEs recognise the difference between being green for its own sake and bottom-line energy efficiency at work. Green is ultimately a business preference but energy efficiency is good business practice. And, SMEs are increasingly recognising energy efficiency as a future priority. British Gas Business aims to build on this increasing awareness, and accelerate it, helping SMEs maximise bottom line benefits of improving energy efficiency. The two case studies shown overleaf in this booklet illustrate how energy efficiency can benefit the bottom line of your business. How can we help 79% of SMEs have so far sought help on energy efficiency, with 47% saying that they would turn to their energy supplier for information and suggestions. At British Gas Business, we have a range of services and advice to help you become more energy efficient. To get your free energy efficiency advice booklet, simply call or visit 3 4

4 Look at how energy efficiency could save your business money Case study 1 Efficiency saves shop 1,920 a year Like most village shops, Londis in Coltishall, Norfolk, provides an essential service to local customers. At the same time, it has to operate on thin margins, so spending 800 a month on energy inevitably cut into profits of the Coltishall shop. Owner, Andrew Hadley, was delighted therefore when British Gas Business introduced him to Energys, the energy management organisation specialising in making businesses more energy efficient. Bottom line: 20% Case study 2 Savings all round for pub A pub s popularity can have a downside in terms of energy consumption. That s why Barbara Smith, landlady of the Swiss Cottage in Shoreham-on-Sea, was eager for British Gas Business to introduce her to Energys, the energy management organisation, for some practical energy-saving advice. Kitchen Our consultant found that the pub kitchen was a powerhouse producing lots of good food but also wasting energy. He suggested investing in a dedicated kitchen boiler and buying induction hobs that concentrate heat on the pans. Cellars There was also room for improvement in the cellars, where beer barrels were kept alongside the fridges. Since fridges generate heat, the barrel coolers were forced to work harder. Creating a partition between the two areas solved that problem. Lighting As for lighting, the tungsten filament incandescent bulbs used at the Swiss Cottage dissipated 90% of the energy they used. Energy efficient compact fluorescent bulbs were the ideal replacement. Lighting: 30% Lighting was first on the agenda. The Londis store kept 50 strip lights blazing all day. But illumination on that scale burned profits too. The solution: by clipping energy efficient high frequency ballasts to the end of each unit, energy use was cut by 30% and the lighting bill reduced by 400 a year. Refrigeration: 30% Refrigeration is another major energy consideration for any corner shop. The Coltishall Londis had already made a good start, with automatic shutters that came down at night. This was saving Andrew Hadley 30% per unit. Fitting permanent plastic curtains to each unit knocked another 30% off running costs. By following these recommendations, together with other tips on lighting and refrigeration, Andrew Hadley has trimmed his total energy use by 20%. That s not only good for the environment, it s also good for his business, saving him 1,920 a year. Bottom line: 20% All told, the measures recommended by Energys should cut the Swiss Cottage s fuel bills by 20%. Dining area Achieving 21st century levels of energy efficiency in old British pubs can be a challenge. At the Swiss Cottage, the lofty dining area posed a problem easily remedied with a ceiling fan that pushes warmer air down in winter and circulates cool air in the summer. 5 6

5 Listen to seven ways your business can save money 1. Lighting Sunlight is free. Make the most of it by keeping windows and skylights clean and clear and turning off artificial lights whenever possible particularly in empty rooms and corridors, and especially at the end of the day. This can cut up to 15% off your lighting bill. 5 You can also fit daylight sensors to areas that receive natural light, to automatically turn off lighting and maximise the use of daylight. 2. Standby Never leave equipment on standby. A monitor left on overnight wastes enough energy to laser-print 800 pages. 6 A photocopier left on overnight wastes enough energy to make 35 cups of tea! 7 If you re not on standby over the weekend, why should your equipment be? 3. Heating Office workers function comfortably at around 19 C. Your energy costs rise by 8% for every 1 C temperature increase. Don t heat unused space, and lower the thermostat in storerooms, corridors and areas where any work is more physical. Reduce heating during holidays and weekends. 15% s heating 5. Doors and windows Seal doors and windows with inexpensive self-adhesive draught excluders to cut down on air infiltration and reduce heat loss by as much as 10%. 6. Air conditioning Confine the use of air conditioners to days when the temperature is 25 C and over; otherwise rely on natural ventilation and fit solar film onto windows to reduce heat from direct sunlight. Avoiding the use of air conditioning can cut energy spend by 50%. 7. Paper Companies use about 10,000 sheets of paper per person every year. That stacks up to about four feet per employee. 8 Cut that back through double-sided copying, using recycled paper and using and voic wherever possible. And don t print s unless absolutely essential. Recycle what you use and make it easier for everyone by placing recycling bins in high traffic areas such as conference rooms and kitchens. 10% 50% paper cuts 4. Boilers Ensure you have your boiler serviced every 12 months by a CORGI-registered engineer. Check boilers are well insulated. If you're fitting additional insulation, you should ensure this does not interfere with the burner or air supply. 7 8

6 What are we doing to help? What next? British Gas Business is part of Centrica, one of the UK s foremost energy suppliers. Whatever your business or the size of your energy bill, you can bridge the energy efficiency gap between home and work if you: Stop Green Light: and put energy efficiency on your agenda all businesses should have an environmental policy. It s business efficient This carries responsibilities, not least of which is to be as energy efficient (and therefore environmentally conscious) in our own operations as we urge our business customers to be in theirs. That s why over the next few years Centrica is investing 750 million to develop our own renewable generation assets, instead of only buying-in and selling-on renewable electricity from other sources. At British Gas Business we re committed to working with our customers to help them save energy, reduce their carbon footprint and save money. Among the initiatives we re currently undertaking are two exciting environmental projects Green Light and Earthship. An energy-saving campaign focused in the first instance on London s retail sector. British Gas Business is asking shops in London to reduce their lighting consumption in a bid to help combat climate change. To find out more visit green light Earthship: We re sponsors of the UK s leading-edge selfsustaining environmental project, established to raise awareness of the links between buildings, working and living patterns, and global warming. To find out more visit Look at your energy consumption and take control of your costs. It s business efficient Listen to good advice and take reasonable steps to reduce your energy consumption. It s business efficient Our research has shown that many SME energy buyers don t know where to turn for advice on energy efficiency. But they d like to know they can approach a responsible and reliable energy supplier for specific and practical measures that will reduce their energy use and cut their bills that s where we come in. So whether you re a British Gas Business customer or not, call or click today for advice on getting started. To get your free energy efficiency advice booklet, simply call or visit If you have succeeded in improving the energy efficiency of your business, we d like to know about it. Send an to ee@britishgasbusiness.co.uk and tell us how energy efficiency has worked for you and your business s bottom line. 9 10

7 1 Defra, Office of National Statistics, UK GDP Q4, Climate Change Levy (CCL) is a tax levied in the UK on the industrial and commercial use of energy All figures and percentages (%) quoted have been taken from the latest set of figures provided by OFGEM in July Envirowise. 7 Carbon Trust. This fact is based on a mid-volume copier. In "sleep" mode this uses 51W and is on all day. Assume that the office is empty from 6pm to 8am = 14 hours. Then (51W x 14 hours) / 1000 = 0.714kWh. Assume 1 cup of tea requires raising the temperature of 0.25 litres (i.e. 0.25kg) through 70 C (from 20 C to 90 C approx). Specific heat capacity = 4200J/kg/ C. Energy requirement = 4200 x 0.25 x 70 = 73,500J. Conversion to kwh = 73,500 / 3,600,000 =.02kWh. Therefore overnight wastage is equivalent to 35.7 cups of tea (35 complete cups). 8 WWF-UK. The WWF-UK benchmarking study provided the base stat then, assuming a ream is equivalent to just over 2 inches and 10,000 sheets is 20 reams = c. 4 feet. Calls to British Gas Business may be recorded and monitored for quality assurance and compliance. BT customers will be charged a maximum of 4p per minute for this call. A call set-up fee of 3p per call applies to calls from residential lines. Non-BT customers should check the cost of the call with their provider. British Gas Business is a trading name of British Gas Trading Ltd. Address: Millstream, Maidenhead Road, Windsor, Berkshire SL4 5GD