Power Efficiency urges Government action to improve energy efficiency in the private sector.

Posted: March 16, 2011

Carbon Connect Inquiry co-Chair calls for greater collaboration between Government and UK businesses to implement practical measures.

Power Efficiency, the energy procurement and carbon strategy consultancy, is today urging Government and industry to work together to develop energy efficiency policy that will save UK business over £6 billion every year.

Julius Brinkworth, Director of Energy Projects at Power Efficiency, and co-Chair of the recent Carbon Connect Inquiry into energy efficiency in the private sector, said: “UK business cannot afford to ignore the financial benefits of being energy efficient in such economically difficult times. By being smarter about how and when we use energy, the private sector can start making sizeable savings quickly – many within just one year.”

The Carbon Connect Inquiry produced a report with 15 recommendations for improving energy efficiency in businesses across the UK. Amongst these is the suggestion that Government should pilot a new-build energy performance contract to demonstrate the energy savings achievable.

“Although there are various PFI contracts with carbon targets,” said Brinkworth, “an example contract and project would provide a basis for industry to develop new contracts and performance criteria for buildings. Input from the Government to develop an example that accurately specifies how much extra energy could be reduced by implementing efficient designs, commissioning and operation of buildings, would be invaluable, creating a robust business model for change.

Focusing on specific sectors, the report also recommends that Government should work with the insurance industry to develop suitable low cost insurance policies for energy efficiency projects.

Commenting on this, Brinkworth said: “Experience on large energy projects shows that failure is often not due to lack of funding, but to the complications of insuring the whole project. The project management on energy projects is often disjointed, involving a range of specialist contractors and equipment and creating ‘dead zones’ where there is a lack of connection and responsibility. To ensure the project is kept on track, the insurance industry could create a series of products designed to manage the risk between investors, building owners and contractors.” 

Brinkworth also calls on the Department for Communities and Local Government to get involved in discussions about offering local tax rebates to businesses that improve their energy efficiency. This would be linked to the energy performance of a building, as assessed through Display Energy Certificates, with business rates to create an incentive to both building design and operation. Additionally, he would like to see landlords and tenants being able to pass tax incentives like the enhanced capital allowance on energy efficiency equipment between them, which will encourage long-term tenants to invest in energy efficiency.

“Some of these recommendations are very simple to implement, but they require commitment from both Government and from business,” he said. “If we can achieve this, it will not only save UK companies a great deal of money, but it will also have a huge impact on our carbon emissions, which as a nation, we are legally bound to reduce drastically by 2020.”

The Carbon Connect report “Energy Efficiency: The Untapped Business Opportunity” can be accessed at http://www.policyconnect.org.uk/cc/research

About Power Efficiency

Power Efficiency is a Balfour Beatty company. It was founded in 1999 with the prime objective of bringing a fully-rounded, strategic approach to the business of energy management. Power Efficiency is one of the UK’s leading consultancies in helping businesses define and achieve successful energy procurement and carbon strategies. The management team has long standing experience in energy markets in both the UK and overseas, covering core areas such as energy procurement, energy reduction, auditing and the introduction of new technology, Power Efficiency constitutes a known and respected voice with every key supplier in the utilities markets, and also with legislative bodies, including the UK and EU governments.

About Carbon Connect

Carbon Connect is a high-level coalition of businesses and environmental organisations committed to exploring the key challenges and opportunities relating to UK energy and climate change policy. We were launched in June 2009, by Ed Milliband MP, then Secretary of State for Energy and Climate Change.

Through events and policy research we bring together Parliamentarians, business leaders and key figures in the world of energy and climate change. By actively examining and responding to forthcoming policy we aim to enable progressive decision-making and the exchange of ideas between government and industry.

Our members are committed advocates of low-carbon enterprise and ensuring the UK is at the forefront of the transition to a low carbon and resource efficient world. To find out more, visit here.

For further information please contact:
Hollie Smith
Power Efficiency 
Tel: 0208 269 6100
Email: hollie.smith@powerefficiency.co.uk