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Utilities & Environmental

Examining the Void Between Energy Management Review and Implementation

By 22nd April 2014April 4th, 2019No Comments

Paul Millican

Posted by: Paul Millican

This week has already kicked off to a great start, with our successfully saving a client £116,000 per year, not only by simply changing their gas supplier but fundamentally changing the way they procure energy to ensure better value and budgetary security. It’s a relatively small change that makes a massive difference to the ever-important bottom line. This then got me thinking about energy consumption as a whole…

In little over 18 months all businesses with 250+ employees or a turnover of over €50m will be required to conduct a ‘mandatory energy audit’, carried out by an accredited auditor. This review will be made up of an inspection, a survey and an analysis of energy flows for energy conservation in a building, process or system. The purpose of the review is to reduce the amount of energy input into the system without negatively affecting the output(s).

It’s important to point out that this isn’t an audit that is limited to 250+ organisations and nor should it be. There are a number of reasons for a business, no matter how big or small, to review its energy usage – often (and most importantly), to reduce their business financial outgoings and impact on the environment.

One should consider, however, what happens after the review has been carried out. It may be surprising to learn that businesses often – unintentionally – neglect to address observations made during their audit. This oversight usually occurs as a result of lack of in-house expertise or capacity, funding, knowledge of suppliers, lack of understanding of appropriate technologies or directional detail within the report itself. Therein lies the benefit of securing the services of a cost management specialist.

Using such a specialist enables businesses to implement positive change, identify relevant solutions and quotes from credible suppliers, as well as implementing new services, procedures and systems – all without incurring a significant drain on internal resources.

The pain of making any changes is removed; often such professionals will bring with them their established business contacts, securing better rates of services than would be obtained independently. Whilst I can’t speak for other specialists, at Auditel we work on a contingency basis. Therefore you only pay a fee based on the total monies saved, meaning that you don’t accrue any additional upfront costs either.

Consider taking action before the energy audits become mandatory – wouldn’t it be much better to start realising the significant benefits now, with the added benefit of being ready for the ‘mandatory energy audit’ in 18 months.

In summary, leaving a gap between review and transformation can be costly – to your business and to the environment. With new mandatory requirements looming, it’s evidently time for businesses to review their energy management systems. But why wait until then?