11 Oct 21
I first wrote this plan in 2005 when I set-up B2B Energy Limited and I worked with various companies’ delivering such plan, but it was not until we had a recession in 2008 that this really become a workable process.
To provide ‘Energy Management’ within an organisation you really do need to deliver a ‘Spend’ to ‘Save’ process, or do you? I have worked with many organisations delivering energy management and for me the best process is to take a step back and plan the journey. In this case it is a successful journey. I believe if you maintain visibility then there is no reason why this process does not work.
To begin this strategy we have to be aware that both the purchasing of energy and the management of energy has to be come ‘One’ you cannot manage the purchasing of energy to just let it not be controlled and at the same time you cannot control the energy without it not being purchased correctly and strategically.
To start this process off precisely there needs to be discussions with the board and in this case I would actually suggest this is led by the Finance Director as they would be the person responsible for purchasing and also responsible for providing the budgets for energy management.
I call this process or ‘plan’, the ‘7-point plan’ as these 7 points provide a sequential process for SELF FINANACING. This plan delivers the following structure of the energy management from the top down:
- Energy procurement
- Energy technologies
- Expertise in energy efficiency
- Energy savings.
- Measurement and verification
The plan will incorporate all utilities and ensure that all utilities are monitored and controlled from beginning to end.
This is a self-financing plan that works with the organisations team which will help to secure energy savings, carbon reduction and financial benefit by delivering this seven-point plan:
1. Collect all data for all organisation’s utility bills, gas, electricity, water, and re-appraise all tariffs and renegotiate contracts (you could include Transport) – Cost £0.00 with a possible 2% Saving
2. Set up and review data collection of all utilities. Carry out a desk top study on all properties – Cost £0.00 with a possible 5% Saving
3. Carry out an in-depth study on the properties that are poorly performing via a desk top report. Using benchmarking, monthly reporting and possibly interval data. Cost £0.00 with a possible 5% Saving
4. Attend the property and carry out an assessment and prepare recommendation made to enhance property performance (No and Low-Cost Projects) Cost for this is funded from the savings made by points 1 to 3 with a possible 8% Additional Saving
5. Implement recommendations from point 4 (Capital Cost Projects) Cost is funded from the savings made by points 4 with a possible 8% Saving
6. Provide monitoring on gas, electricity, and water daily and reporting on any exceptions – Cost is funded from the savings made by points 4 and 5 with a possible further 2% Saving
7. This is where an Energy Bank Statement is produced to help the organisation monitor the costs and savings going forward. Cost £0.00 and savings maintained
To make this 7-point plan work there are certain factors that need to be followed:
- Board commitment and top down management
- Monthly review meeting with expert
- Monthly Energy Bank Statement presented and agree
There is no reason why this will not work but the organisation must have the appetite to deliver this. During these unprecedented times with Covid-19 and the newly announced ‘Recession’ organisations need to be focusing on costs. Energy is the third largest cost and it always gets overlooked. Organisations always focus on their buildings and people. Another fact to consider is possibly the 80 – 20 rule and energy being 20% of your costs so if we focused on 20% of the costs this may deliver 80% of the savings.
Organisations that I have worked with over the many years of working in this industry I have seen them make some significant savings and in all cases they have saved on average 7% of there energy year on year and by reviewing steps 1 to 3 you are already half way there to making a big difference to your costs.