11 Oct 21
My question around this would be… Will this engage more organisations to embrace in energy management rather than focusing on ‘Climate Change’.
Good organisations constantly focus their business goals on their profits and believe that if they increase their sales, their profits will increase. Great organisations focus on their costs to increase their profits. I feel however, that a greater impact could be made if an organisation were to put their focus on the kWh consumption and the cost, therefore showing the real impact that could be made.
I believe that by focusing an organisation on their costs, but more specifically their ‘3rd largest expense” it will make for a better impact on bottom line profits through making savings on their gas, electricity and water.
If we don’t focus on the 3rd largest expense, it then becomes the traditional focus of the increasing of sales in order to see profit.
Where do I start?
Take your gas, electricity and water bills for the last 12 months and create a table for each utility, for both cost and consumption giving you a point to start to focus on. The exercise may take some time but keep the momentum going every month. Once you understand your ratios for unit rates you can apply the % savings.
Whilst reviewing these bills, understand the other areas on the bills for rates, estimation and contracts (REC Process) .
Energy Management for me is not just about saving the planet but about making organisations become resilient and sustainable within their industry. I have produced a very quick spread sheet to support you with this and of course I will be happy to share this.
An interesting conclusion from this would be that the organisation can now equate energy savings to sales, which in itself will put an interesting dynamic on energy management.
Energy Savings kWh = Sales