Managers Commentary: Energy - is it on your agenda?
This briefing was prepared exclusively by Malcolm Pittwood, the Energy Manager at FHP ESS, and is his commentary on energy.
"The recent city-wide electrical power 'black-outs' reminded me that three decades ago the first fuel crisis struck and Britain went on to 'three day week' working to conserve energy from the power stations and petrol coupons were printed to limit peoples transport fuel use. In the unsophisticated days that were the early seventies, there were few computers in small and medium sized businesses and none on desktops.
Today our commercial business world relies upon the computer and an array of communication systems. Our commercial buildings now have to be heated, cooled, air conditioned, serviced with electrical power and lit to requirements (some would claim these are demanded standards set by tenants) that within the span of a generation have resulted in a massive 65% overall energy use increase in this sector. Indeed it is stated that the electricity use increase in this period went up 100%. Even now the increase in building energy use continues to rise by just under 4% each year, leaving the transport sector where we see more cars on the roads in its wake.
Energy consumption (particularly that of electricity) is now equated to carbon emissions into the atmosphere that causes climate change. In the UK commercial and public buildings contribute the same carbon emissions quantity as the Integrated Pollution, Prevention and Control (IPPC) regulated industrial processes of our country.
For most commercial businesses, energy or energy use hardly ever features in the everyday discussions by the water cooler or the coffee machine and when it does get raised it revolves around the Chancellors latest increase in tax on transport fuels. Rarely does energy use feature on the regular formal agenda of meetings that are concerned with the operation and maintenance of a particular building."
"The United Kingdom, with its European partners, embraced the outcome of the Kyoto Climate Change Summit by setting environmental goals that would stabilise emissions of greenhouse gases arising from the burning of carbon based fuels at 12.5% below the 1990 levels. The target of 0.872 of the 1990 levels was to be reached between 2008 and 2012. However, the UK Government then demanded even stricter standards to be achieved in the Climate Change Programmes, with a 20% reduction in the 1990 carbon dioxide (CO2) emissions to be achieved by 2010.
An initial route in becoming environmentally friendly was for energy users to join the 'dash for gas'. The lower percentage carbon content of natural gas meant that conversions away from oil and coal easily achieved CO2 emission targets that were set (as well as reduced emissions of oxides of sulphur). This of course had nothing to do with reducing energy consumption in the building concerned by improving efficiency of use. Energy appeared on the agendas of businesses for a brief moment until conversion had been achieved and then went away.
As the dash for gas proceeded there was liberalisation of the energy supply markets in the UK as monopoly suppliers faced competition. Fuel buyers were able to achieve some substantial cost savings by 'shopping around' the new sellers entering the energy marketplace. Tariff brokers made the task easier without imposing any cost on the buyer and so unit costs of energy fell. Users were making annual cost savings but these too did not have anything to do with reducing the actual energy consumption of the building concerned. Fuel purchase may have appeared once a year on the business agenda but for the most part it was absent.
Having observed these purchasing decisions had made no impact on overall energy consumption, the UK government decided that users might be influenced by a cost increase through the imposition of a Climate Change Levy (CCL), better known in the media as the 'Carbon Tax'. The energy suppliers became the collectors of the Levy for the Government and with a few exceptions everyone had to pay as it appeared as a sum attributed to each unit of gas, coal or electricity consumed. (Whilst this article is not about the CCL, it was intended to be overall a fiscal neutral tax, as employer NI contributions were reduced - they have risen since of course!) It is unlikely that the carbon tax brought energy and energy consumption reduction onto the agenda of businesses. For the majority of businesses the easiest way to deal with a 10% rise in fuel bills was to pass the cost onto our customers in increased sales price or charges. The state of the UK economy allowed businesses to act in this way - buyers of goods or services did not notice the amount involved.
Britain and Europe then turned their attention to the energy use of buildings, both domestic housing and commercial properties. As I described earlier, a sector where the increase of energy use year on year is leaving all other sectors behind is commercial buildings. Where the carbon emissions for the combined sector is 40% of the UK contribution of such climate changing gases - about 57 million tonnes of carbon each year.
The Building Regulations Part L2 were brought into force and through their subtitle - "Conservation of Fuel and Power" they should bring about new standards in construction techniques and materials to prevent energy wastage. They should also give rise to improved efficiency of installed services and their operation to reduce energy consumption. Whilst applied through the planning process to new buildings, where it cannot be avoided, L2 is a regulation that applies to existing buildings when alterations occur. My experience to date suggests that even Part L2 has not brought energy onto the business agenda of building owners and operators, even though at some future date there is every reason to believe they will do works on their building that require compliance."
"The EU Energy Performance of Buildings Directive builds on the work of Member States, such as the UK's Building Regulations Part L2, because the Commission recognised that they have limited scope to influence energy supply. However, the residential and tertiary sectors is the largest end user of energy and therefore offers a large potential for energy savings that will allow Kyoto Protocol commitments to be met.
The legislation on Building Performance will be enforced no later than January 2006 and this legislation should put energy use onto the agenda of every building owner or operator. This is because the building 'certification process' will fuel demands from occupants and tenants to see proof of how energy user services - heating, cooling, mechanical ventilation and air conditioning, and lighting - are being maintained and controlled. This could force energy to the fore and onto business agendas.
In the quest to bring about reduction in carbon emissions those responsible for energy purchase, energy use, and energy control should be reviewing and reporting on it regularly. Waiting and continuing to do nothing positive until the end of 2005 might be an option but not one that the country can afford.
Whose agendas should energy feature on?
- The Building Services Maintenance Contractor meetings with the managing agent
- The liaison meeting between managing agent and tenants
- The landlord meeting with tenants
- The managing agents meetings with the building owner.
What information should be brought to these meetings on the subject of energy use?
- Determine where energy is being used - the major user items or services
- Measured energy use since the last meeting - identifying in time any abnormal use
- How the previous periods energy monitoring has confirmed whether annual targets will be achieved. Targets should be set to reduce energy use year on year
- Where adjustments or alterations to systems have reduced energy use
- Report how much has been saved and at what investment cost.
The new energy mantra for the 21st century should perhaps be:
"Measure, Monitor, Adjust, Reduce, Report".
Although this is slightly longer than the "Save It" campaign slogan, each of these five words indicates an action that those concerned with commercial buildings should carry out on a regular basis and have on the agenda of meetings."
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