It is said that if you can’t measure, it you can’t manage it. This may not be a universal truth but it certainly applies to those companies planning to reduce their variable costs as part of a business improvement strategy.
For many businesses energy costs are addressed only quarterly – when the bill arrives from their supplier. The financial impact of energy consumption is seen simply as an unavoidable cost – which is, to an extent, true. However, it is possible to take a number of actions that can alleviate this problem to a greater or lesser extent.
Typically, the more a business spends on energy consumption, the bigger is the opportunity for making savings. But regardless of scale or scope, it is always possible for an organisation to take some kind of action that will boost energy efficiency in such a way as to improve financial performance.
Poor practice at an enterprise can significantly limit any improvement push undertaken. Examples of bad habits include:
- Accounting for energy purely as pounds and pence rather than by consumption
- Not checking your utility bills
- Accepting estimated readings
- Not analysing energy use on an annual basis for trends
- Accounting for energy use as KWHrs but not relating the results to production activities or weather conditions.
As is always the case in life, doing something differently or better requires effort and time. A more managed approach to energy consumption will have to be driven from a senior level in a business to ensure it is sustainable and achieves the cost reductions desired. And only when the benefits of such an approach are fully understood at this level can energy management work its way up the business agenda.
And once an organisation begins to think in an ‘energy strategic’ way, what are the next steps? Well, careful analysis of data already held or available to a business is a good place to start.
This will involve:
- Checking utility invoices for accuracy, the right tariff and Climate Change Levy (CCL)reductions
- Providing actual meter readings to the supplier
- Providing automatic readings where possible, perhaps by using
- Using sub-metering
- Making consumption data available to high users within the
- Accounting for weather or production cycles
- Making energy consumption auditable
How Envantage can help
Envantage helps organisations to manage their carbon reduction more efficiently and effectively through a comprehensive portfolio of services. We operate across all sectors throughout the UK, Ireland and Europe, and are a totally independent organisation with a client base of industrial and commercial organisations.
Envantage was incorporated in April 2004 by experienced professionals within the energy supply industry with a vast knowledge of energy procurement, energy efficiency and energy legislation.
We have developed over the years building an impressive suit of carbon reduction services. This has been achieved through successful recruitment of additional highly capable individuals, each an expert in their related field. All of our energy consultants have been selected for their knowledge, skills and experience within the energy and carbon market. All our energy consultants are accredited by the Carbon Trust.
We enable our engineers and consultants to engage in continued professional development to ensure that they are ahead of the game in the fast moving carbon market. We believe that knowledge is critical and so we support our employees by providing regular training in new market developments and advancing technologies. This is also part of our ISO9001 requirement.
We firmly believe that Envantage is differentiated in the market by the quality and experience of the people we employ. To work with Envantage, contact us either online, or by phone, email, fax or at our office in Didsbury, Manchester.