SMBs wake up to energy savings

The green business movement may have been largely driven by multinational brands and technology start ups, but as energy prices continue to climb, the vast mid-market that makes up the bulk of the business community in the UK has also finally begun to realise the value in tackling energy use and carbon emissions.

Consequently, a raft of local and regional energy audit and consultancy firms have sprung up in recent years to address the burgeoning demand for energy saving technologies and expertise among smaller businesses.

One such firm is North East-based CP Energy, which was founded in 2005 by Stephen Calvert, former head of the Energy Savings Trust in the region, and Jonathan Pope, an energy efficiency expert who had previously worked in both the mining and electronics sectors.

BusinessGreen caught up with Pope recently to ask why SMBs are finally facing up to all that wasted energy and what it is energy consultants actually do.

BusinessGreen: How would you summarise CP Energy's service?
Jonathan Pope: It's all about energy efficiency. The aim is to look at cutting demand first, and only then look at how renewables could help to decarbonise the energy supply. We provide a range of services built around energy audits and thermal imaging technology that help firms and individuals cut energy use and green their energy supply.

Who are your typical customers?
We've done a lot of work for local development agencies and local councils. For example, we have been working on assessing a couple of villages – Black Hall Mill and Edmondsley. They are old colliery villages, which in the past have had access to cheap coal and as a result the houses are poorly insulated. In the private sector, we are also seeing a lot of interest from local businesses. There has to be a realisation that most of the houses and offices that will be around in 2050 are already built so it is essential that we assess these buildings and find ways to retrofit green and energy saving technologies to bring down their carbon footprint.

What is the business case for an energy audit?
Our primary aim is to give advice to businesses that will reduce their costs. We advise them to look at their energy contract and shop around for the cheapest option, as well as look for ways to cut energy use through insulation and other techniques. There is no doubt some of these projects are more challenging with SMBs because the budget is smaller, but the interest is definitely there from a diverse range of smaller businesses. As energy prices go up, interest increases; we expect to be busy in the coming months following the recent price increases from the energy companies.

Are SMBs also concerned about the brand benefits associated with going green?
I'd argue that even smaller firms like to be seen to be green. If you look at something like PV panels, there is a genuine double benefit: first, you get the energy you generate and second, you send out a message to everyone that the company is serious about addressing its environmental impact.

What type of recommendations do you typically make?
You can make a saving of 12 to 15 per cent just by swapping your supplier, but that is unlikely to bring down emissions unless you go with a green tariff. If you want to bring down emissions and costs, the easiest thing to look at is how you heat your building and how well it is insulated. You can deliver big savings at no cost by just getting control over your heating. A lot of people are constantly turning their thermostats up and down and will operate super-heated offices. Temperature control makes a huge difference and putting in place simple best practices such as ensuring heating is lowered over night and weekends can deliver big costs savings. You'd be amazed how many firms don't do this. Similarly, lights being left on all the time is another area where a bit of control or even sensors can be deployed at low cost and deliver big savings.

Isn't there a case for saying that businesses can do these types of audits and reach these conclusions themselves?
Well, if a firm has an energy manager, they should have all this information readily to hand. But a lot of firms do not have anyone responsible for energy, in which case it is usually easier to get a specialist consultant in to undertake an audit and point them in the right direction. We charge about £500 a day. Obviously the amount of time it takes to do an audit depends to a large extent on the size and complexity of the building, but for a small office the assessment and report will take a day. The cost savings identified typically result in a sizeable return on the investment.