Green with energy

10 July 2002 by
Green with energy

In 2001 the Government introduced an energy tax known as the Climate Change Levy (CCL) on every business in the country. As part of the Government's commitment to reducing greenhouse gases, its aim is to reduce energy consumption by encouraging industry to introduce energy-efficient measures.

Bryan Whittaker, technical adviser at CESA, the Association of Catering Equipment Manufacturers and Importers, says that energy costs have risen between 5% and 15% since April 2001 as a direct result of the tax, which applies to all major fuels.

Small changes
The simplest way to reduce the impact of the CCL is through energy-efficiency measures, according to Gary Robertson, director of business services at electricity and gas supplier NPower. Even small changes, such as using fans instead of air conditioning, can cause a surprisingly large reduction in energy bills, he says.

For caterers in particular, education is important. "Old habits die hard, and frequently chefs and kitchen staff turn on all equipment - ovens, ranges and extractors - when they arrive in the morning. The equipment is then left on all day. But modern equipment heats up quickly and can be turned off between uses."

Energy management training is rarely considered by caterers, but it would be useful in Robertson's view. Even good-housekeeping practices such as remembering to cover pans with lids can help to reduce energy costs. "If caterers were encouraged to budget for energy use when calculating the cost per head of each meal, factoring the cost of energy into their costs as a whole, there would be an incentive to incorporate good energy management into day-to-day activities," he says.

Getting the best deal
Simply spending a few minutes on the phone often means the difference between getting a competitive price from an energy supplier and paying over the odds. Many businesses don't bother to investigate what energy deals are available, according to Robertson, and they could be wasting money without knowing it. "Being able to compare energy prices is a fundamental part of choosing a suitable supplier, but many businesses don't know whether they are receiving a fair deal or whether they would save considerable sums on gas and electricity from being with another supplier."

Suppliers may be prepared to give customers advantageous prices when the opportunity arises to sign up both gas and electricity at the same time, so it's worth asking.

Cool tax breaks As part of the incentive to use more energy-efficient equipment, companies can apply for a 100% capital allowance against energy-efficient equipment during the first year of purchase (CESA will be publishing more information on this soon, says Whittaker).

At present, the only kitchen equipment where a performance standard is being negotiated for the allowance is refrigeration cabinets. CESA is working with the Department for Environment, Food and Rural Affairs (Defra) to draft a test standard, which could be in place by Christmas.

"If we're looking at energy efficiency for chilled cabinets, it makes sense to look at primary cooking equipment too," Whittaker says, "and we're talking to the Government about this now. It's only a matter of time before manufacturers will find ways to produce more energy-efficient equipment."

Although there's a limit to what a small, independent business can do in terms of energy efficiency, larger groups have more scope. As part of its energy-targeting program, the Marriott chain has installed combined heat and power (CHP) processing plants at a number of its hotels. CHP units also qualify for the first-year 100% capital allowance.

CHP is an option that's proving increasingly popular among large consumers of energy, providing heat and electricity on site while reducing harmful emissions at source by up to 30%. On average, one kilowatt of electricity generated by CHP equals a reduction of 1.2kg in carbon dioxide emissions, according to Whitbread. The company anticipates savings from a CHP installation of £50,000 per year.

The CCL specifies a list of areas eligible for the capital allowance - contact Defra to find out more (www.defra.gov.uk).

It pays to call in the experts

One of the most effective ways of becoming energy efficient, according to NPower, is to have an energy audit. The privately owned Red Lion Inn in Bobbington, West Midlands, called in the supplier to assess its potential energy savings.

The pub serves about 1,200 meals per week and currently consumes 337,743kWh of energy per year using electricity and liquefied petroleum gas at a cost of £13,156.

Built in about 1850, the Red Lion has three floors, but only the ground floor is in public use. Following a fire three years ago, the brick structure was upgraded and walls have been dry-lined with plaster skim. Mineral fibre insulation has been added above the top-floor ceiling and insulation board has been placed between the rafters.

Good energy-saving measures include double-glazed windows, door closers on external doors and some draught-proofing. But the audit revealed a number of areas for improvement: "no-cost" measures include turning the photocopier off after use, turning off unwanted cooking equipment after use, and adjusting the boiler time clocks to the correct time; "low-cost" measures include fitting draught-proof strip to external doors, lagging hot water pipes, and fitting insulation panels behind radiators on external walls.

The audit concluded that the pub could also benefit from "optimiser" measures which, although initially more costly, optimise energy use and make greater savings in the long term. The review recommended an energy-saving boiler controller, which guarantees energy savings of at least 25%, as well as optimisers for the air-conditioning plant and refrigeration equipment, offering savings of at least 15%.

Putting into place the no-cost measures alone would save the Red Lion some 10,200kWh a year, which translates as £273. Should proprietor Matthew Shaw decide to implement the low-cost measures, he could save another 30,768kWh each year, or £1,114.

Together, all the measures recommended in the review would involve capital expenditure of £2,943, but they would save 40,968kWh, equivalent to £1,387 per annum - pay-back in just over two years.

Whitbread builds its green credentials

The Whitbread Hotel Company has been working closely with Green Globe, an international environmental organisation, to improve its environmental credentials and reduce energy consumption.

Whitbread holds the franchise for 59 Marriott hotels in the UK and is embracing environment-management practices across the estate. Its Marriott Manchester Hotel & Country Club was the first hotel in Europe and the first golf club in the world to achieve full Green Globe certification. A further 10 of its hotels have been certified since, including the Slough/Windsor Marriott, the London Marriott County Hall and the Aberdeen Marriott. All of the remaining 48 Marriott hotels are aiming to obtain Green Globe certification in the coming months.

To achieve Green Globe certification a hotel must develop and implement an environmental plan, which is to be integrated at all levels within the hotel. Some typical examples of what the plan could include are:

  • Efforts to reduce water, electricity and gas consumption.
  • Using Ecolab cleaning products, which are environmentally friendly.
  • Social or community projects linked to the environment.
  • Recycling waste - ie, bottles, cans, cardboard, paper, light bulbs.

In the case of the Marriott Manchester Hotel & Country Club, the results of implementing the environmental programme have been "outstanding", the company says, with savings of £40,000 on consumption of water, gas and electricity.

General manager Peter Bech believes that "having a sound environmental management approach to running a business is absolutely necessary". "There are very good economic, social and moral reasons why every business should take this approach," he says.

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