£1Million Energy Spend = Energy Manager

When working for Satchwell (now Schneider), we developed energy services and our rule of thumb was that if you had a combined energy spend of £1M you needed to employ an energy manager or deploy an energy expert. This was back in 2003 and today I don’t think this is happening, in fact I know it’s not happening. There is no real dedicated position in place for many organisations. Over recent years, I have been shocked that there have not been any energy managers in place. What I have been seeing though is that the ‘Energy Managers’ role is being delivered by the Health and Safety Officer, the Facilities Manager and in some cases the Maintenance Manager. This is ok though as each of these roles are absorbing significantly and the management of energy is becoming considerably more resourceful.

Todays energy manager role has to include the following:

There is no crossover into different positions and I believe this is a stand alone position.

The implication of not employing or deploying an energy manager would mean that there is no focus on an organisations’ third largest expense and as a business manager this is something that you would not want to slip.

There is no real solution to replace an Energy Management position within an organisation, I wouldn’t even recommend breaking down the tasks.

What I would consider is reviewing how much of an energy and cost reduction could be secured just by implementing an energy manager or deploying a consultant. This value could be used as part of a goal setting exercise or target focus. You could even consider a process of shared savings in year one with a view of transitioning this to fee based in year two, which is a good way of managing the risk.

The pay off could be a possible 25 – 30% savings achieved in year one with ongoing savings which is reward alone.

If you’re an organisation, look how you are managing your third largest expense and ask the question – are you are covering all the aforementioned tasks? If you answer ‘No’, calculate your total combined utilities and see how much 20% savings would be and ask that question – can we afford to employ or deploy an energy expert in-house?

I would believe you could.

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