We have written before about energy saving initiatives that are mainly targeted at larger organisations. The Carbon Reduction Commitment (CRC) is one example.
As an urgent reminder, if yours is an obligated organisation under the CRC initiative the deadline of the 30th September for registration is virtually upon us. There are still many companies that have yet to register and failing to do so can attract hefty fines.
We now hear that the coalition government is proposing to help the much larger number of small and medium sized companies to realise energy savings. If it goes ahead then we expect it to be included in the Energy Bill – due to be announced in November.
Basically, the scheme will involve the government in setting up a fund that will be administered through the banks and from which organisations can borrow money to upgrade their plant and equipment for greater efficiency. Loans will then be repaid out of savings from the increased efficiency. Repayments could also be automated through the energy providers so that there is little or no impact on the individual companies themselves.
Overall, it could be a win-win situation for companies wanting to save money, the government wanting to reduce carbon emissions and even for the banks who have an obligation to increase their lending to businesses.
The challenge will be to keep what essentially is a very simple idea free is from bureaucracy that could be off-putting for smaller organisations. Otherwise, up to four million businesses could benefit from the scheme by replacing old heating and cooling systems, air conditioning, lighting, and other poor efficiency equipment.
Smaller organisations often do not have the time or the information needed to properly assess their energy usage or to devise viable strategies to improve their performance in a cost-effective manner. For some years, EDP has been advising organisations of all sizes on how they are able to improve their carbon footprint and improve energy efficiency. We will be closely following this proposal to ensure our clients are able to gain maximum benefit from it.
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