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Small and Medium Business / Energy Efficiency
Energy Efficiency Print Page

Total Gas & Power have produced a document about energy efficiency which gives guidance advice on the efficient use of gas and electricity for businesses. It has been prepared in conjunction with energywatch and has been approved by Ofgem - the gas & electricity regulatory body.

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Top Tips For Energy Efficiency

Every little change like putting timer switches on lights and appliances at the workplace can make a difference to the energy efficiency of your business. Making lots of small changes at little or no extra cost could add up to 20% of reduction in your energy bill.

Total Gas & Power is committed to energy efficiency. We are equally committed to helping your business achieve these savings by advising you follow our tips for energy efficiency:

Lighting

20% of the electricity generated in the UK is used for lighting. 58% of this is used in the service sector (offices, shops, warehouses etc.), 13% in industry and 29% for domestic use. Therefore, considerable savings can be found in all sectors of use by following our low-cost tips:

  • Label switches and turn lights off when not in use; use time switches to control display lighting;
  • Replace T12 fluorescent tubes with T8 types - they use 8% less energy; compact fluorescent lamps use 80% less energy than tungsten GLS lamps;
  • Consider fitting daylight sensors to maximise the use of daylight; review the exterior lighting - sodium lights are more cost-effective for night time security.

Heating

Heating includes space heating and the heating of hot water. Consumption in commercial buildings varies, depending on the building's usage. General tips for saving on heating are:

  • Check space heating controls and temperatures regularly; fit Thermostatic Radiator Valves to enable local temperature control; ensure your radiator circuit is weather compensated to reduce overheating;
  • To avoid overheating space or water, ensure that radiators and heat emitters are free from obstructions and that pipes are insulated. Try not to open windows, if your workplace is too hot, turn the heating down;
  • Check how hot water is generated in summer - avoid using large boilers for small loads of hot water.

Insulation of Buildings

Effective insulation and draught proofing is essential to reduce heat loss from buildings. Good insulation is best fitted during the construction or refurbishment of buildings where it becomes more cost effective and less disruptive. Follow these tips on energy saving:

  • Draught proof doors and windows with self-adhesive thermal strips, it will reduce 10% of heat loss. Entrance doors can add to heat loss - ensure external doors have automatic closures;
  • As well as creating a visual security barrier, plastic strip curtains reduce heat loss. Fit docking seals to temperature controlled warehouses; rapid roller shutters reduce loading bay heat loss;
  • Insulate cavity walls, roof voids as well as pipes and valves – it can reduce heat loss by up to 35%.

Business Equipment and Gas Appliances

Electrical appliances such as computers, photocopiers and office machines account for 15% of electricity used in UK offices. The growth in IT equipment means electricity use is increasing, despite newer appliances being more efficient. Gas appliances may offer lower running costs for heating, but should be serviced regularly and require fresh air supply to operate safely.

Our Top Tips for Energy Saving

  • Switch off equipment when it's not being used. Configure the energy saving features of IT equipment;
  • Fit time switches to turn equipment off at night. Consider energy efficiency in new equipment costing;
  • Gas catering equipment may offer significant fuel cost savings over similar electric appliances. Industrial buildings with cold spots may be locally heated with gas fired infrared plaque heaters at low cost. Avoid using supplementary electric heaters.
Why Saving Energy Is Good For Your Business

Funding Energy Efficiency

For energy efficiency improvements it should be possible to obtain internal funding given the significant benefits available, frequently, at no or low cost. However, energy efficiency will always be competing with other potential investments.

Grants and Low-cost Loans

Generally from public funds, grants are sometimes available to assist with the capital costs of an energy efficiency investment. Low-cost or interest free loans for energy efficiency investments are usually available for small and medium enterprises (SMEs). For information on current schemes available, visit the websites of the Carbon Trust and the Energy Saving Trust.

The Enhanced Capital Allowance Scheme (ECA)

The ECA scheme offers tax incentives to businesses that invest in energy saving equipment and enables them to claim 100% first year capital allowances on investments in approved energy saving equipment. Businesses are now able to write off the whole cost of their investment against their taxable profits for the financial period during which they made the investment. Qualifying equipment includes boilers, lighting, motors, drives, combined heat and power, thermal screens, insulation and refrigeration. For more detailed information, visit the ECA's website.

Combined Heat and Power (CHP)

CHP is the simultaneous generation of heat and power in a single process. Compared with the centralised generation of electricity, where the waste heat produced from the generation process is discarded, CHP systems can be significantly more efficient and yield substantial financial savings for the user. CHP is a key technology in reducing CO2 emissions, and the government has set a target of 10,000 MW of Good Quality CHP electrical capacity by 2010.Fuel inputs and electricity outputs from Good Quality CHP are exempt from the Climate Change Levy. Most CHP plants are available in a wide range of sizes, and can be tailored to many applications. For more information, visit the CHP Association website.

Climate Change Levy (CCL)

Since April 2001, the Government’s CCL has increased fuel bills for some businesses by 8-15%. The Levy is intended to encourage businesses to be more energy efficient, resulting in reduced greenhouse emissions, lower energy costs, and a reduction of employers’ National Insurance Contributions. The UK has a target of a 20% reduction on 1990 emission levels by 2010. If your business consumes more than 33 units (KWh) per day of electricity and more than 145 units per day of gas, it is likely that it will be charged the Climate Change Levy.If you do not lower your energy consumption, this will mean higher energy costs.

Emissions Trading Schemes

Emissions trading is emerging as a key instrument in the drive to reduce greenhouse gas emissions. The rationale behind emission trading is to ensure that the emission reductions take place where the cost of the reduction is lowest thus lowering the overall costs of combating climate change. The UK Emissions Trading Scheme - launched by Defra in April 2002, is the world's first economy-wide greenhouse gas emissions trading scheme. For more information of how it works, see the following websites:

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