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MP’s to Hold Inquiry into Business CO2 Output
April 18, 2008 1:00 pm
MP’s from each party are investigating how to lower the carbon footprint from the UK’s offices, factories and shops, following concerns that not enough is currently being done in order to tackle emissions from the sector. Currently there is no target on emissions from commercial buildings, although they account for around 20% of the UK’s total CO2 output.
The inquiry is set to call for submissions from stakeholders on reforms to reduce the energy usage of existing buildings, in order to report to the government during the summer.
So far, much of the debate concerning lowering Britain’s CO2 levels have been focused on the carbon footprint of people’s homes, with little attention paid to the energy efficiency of commercial buildings, Labour MP Clive Betts who is chairman of the All Party Urban Development Group commented, “Less attention has been paid to the energy efficiency of commercial buildings, this inquiry will help fill that gap by exploring how cities can work with property owners their occupiers to help ‘green’ commercial buildings”.
The current problem facing the government is that because commercial buildings are so varied, covering everything from office buildings to factories to small shops, it is difficult to tackle CO2 emissions created by this sector. A spokesperson for the All Party Urban Development Group said the inquiry will call for the government to provide “clear guidance, fiscal incentives and a unified system of assessment and reporting”. He said the group are not going to comment on specific measures until the report is completed.
Despite the fact that there are currently no targets in place for cutting emissions within the sector, there are measures in place to encourage businesses to reduce their CO2 output.
From October all commercial buildings in England and Wales will be required to have an assessment of their buildings energy efficiency and display the resulting Energy Performance Certificate in a prominent place. Although there is not set to be any caps or penalties associated with the rating, the government hopes that the public recognition of companies with greener premises will encourage businesses to improve their emissions rating. “If you are a high street bank with a very green public face, you will not want to be seen in a very inefficient building”, said the groups spokesperson.
From 2010 however, the government will introduce a requirement that all companies in the UK with electricity bills over £500,000 cap their emissions, this requirement will cover 70% of all commercial properties. The government has already made a commitment that all newly built domestic properties will be carbon neutral by 2016, while the Department of Communities and Local Government is to launch a consultation that by 2019 all newly built commercial building will also be carbon neutral.
Carbon Trust Publishes Guide to Help Businesses Reduce Energy Bills
April 18, 2008 11:38 am
The Carbon Trust has published a free guide designed to help businesses reduce both their carbon emissions and energy bills.
The recommendations in the guide include ensuring windows and doors remain closed to maintains a consistent, comfortable temperature in the workplace, switching off unused electrical equipment, and using energy efficiency lighting. The Carbon Trust has also revealed that a single computer and monitor left on for one day can add around £50 to an organisations energy bills.
Hugh Jones, the organisations solutions director believes that by using such small measures, companies can demonstrate good carbon management, “This will not only lead to savings on energy bills, but will also demonstrate an organisations environmental credentials”.
The Carbon Trust was established in 2001 by the government to encourage businesses and other organisations to become energy efficient and develop low carbon technologies.
Centrica In Talks to Bid for British Energy
April 7, 2008 12:01 pm
According to reports, Centrica, British Gas’s parent company is currently in talks with European firms about putting together a £10bn joint bid for British Energy.
EDF and RWE are said to be key firms interested in joining Centrica to buy the governments 35% stake in the nuclear power firm, British Energy. Eon and Iberdrola are also thought to be interested.
British Energy has been looking to develop new plants after the government announced it was committed to using nuclear energy but has faced mounting costs. The company currently operates eight nuclear power stations in the UK.
Shares in the company hit their highest level in twenty months on Friday amid speculation about a bid from EDF for the firm. EDF is one of Europe’s leading nuclear energy firms and already has a strong presence in the UK since acquiring London Electricity.
In March British Energy confirmed that it was in negotiations which might lead to a “business combination or an offer” for the company. A bid from Centrica would secure a “British led solution” for the future of the UK’s nuclear industry, said the Sunday Telegraph.
The government has faced massive opposition from the industry over the possibility that British Energy might end up in foreign hands which could lead to job losses within the UK. Despite the government announcing this year that it is committed to a new generation of nuclear plants as an attempt to tackle climate change, British Energy has faced difficulties. Profits fells 4% for the nine months to the end of December as costs increased. The company also had to shut down four reactors at the end of 2007 due to problems with boiler closure units.
Carbon Trust Welcomes Smart Meter Plans
April 1, 2008 10:21 am
Government plans to introduce smart meters to all commercial energy users within the UK have been welcomed by the Carbon Trust.
Dr Mark Wiliamson, the organisations director of innovations welcomed proposals announced in the government’s budget to supply smart meters to medium and large sized businesses within the next five years.
Dr Williamson pointed to research carried out by the body which claims that the use of smart meters by small and medium sized businesses could save around 2.5million tonnes of carbon emissions annually.
“We are therefore delighted that the government has acted on our research and findings and has recognised the role that smart metering can play” he explained.
At the start of this year the Carbon Trust estimated that businesses in the UK could save around £1.4billion on their energy bills by switching off non-essential equipment and implementing measures including efficient lighting.
The organisation was established to accelerate moves towards a low carbon economy and help businesses to reduce their carbon footprints.
Hutton states case for Nuclear Power in UK
March 27, 2008 11:16 am
The UK’s business secretary, John Hutton yesterday put forward his case for the expansion of nuclear power within the UK.
In a speech to the trade union Unite, Mr Hutton outlined his hopes for energy plans in Britain to go further than just involve the replacement of the 23 reactors currently established in Britain. Mr Hutton told listeners that he wants to see Britain leading the world in the development of “this new generation of low carbon power technology. There has never been a greater global demand for finance, equipment and skills to build and operate nuclear power stations”.
Hutton also hopes that in the future, all the movements being set in place will make Britain a “gateway to a nuclear renaissance across Europe”.
The speech came after Mr Hutton recently told the Financial Times that he would be disappointed if the amount of household and commercial electricity created by nuclear power was not increased from current levels.
Government Plan for Cutting Carbon Emissions will Increase Pressure on UK Businesses
March 25, 2008 1:15 pm
The fifth npower Business Energy Index has revealed there is a strong concern within UK businesses that Government regulation to reduce carbon emissions will make the UK uncompetitive and the costs will outweigh the benefits.
The survey canvassed senior managers and energy buyers at SMEs and large industrial and commercial companies on attitudes towards energy usage, costs and CO2 emissions. The results showed an unease within the business community towards the existing CO2 reduction framework and timescale.
71% of intensive energy users said they believed the Carbon Reduction Commitment scheme will make the UK uncompetitive and when asked further about the implementation of the regulation, 63% of respondents said they believed the costs of doing so will outweigh the benefits, just 48% believe the Carbon Reduction Commitment will achieve its target of removing 1.2million tonnes of CO2 from the atmosphere by 2020.
75% of intensive energy users questioned said they believe that the pressures of the Climate Change Levy, the EU Emissions Trading Scheme and the Carbon Reduction Commitment will place an undue burden on business. These three schemes are the UK’s main programmes put in place to reduce CO2 emissions from businesses.
Findings from the survey and follow-up report suggest that UK businesses currently feel penalised as other European and global businesses do not have to conform to the same administrative and financial requirements as those imposed by UK regulation.
Paul Coffey, managing director of npower business said, “Businesses have faced a raft of new legislation in recent years, with more now promised in the form of the Carbon Reduction Commitment, so its understandable that they may feel the responsibility to reduce CO2 is being placed at their door. However, with the UK’s CO2 emissions targets becoming legally binding this year, we cannot escape the fact that all businesses will be called upon to reduce their carbon footprint. While the need to actively reduce CO2 has become a business requirement in only the last few years, it will increasingly become a priority as low carbon outputs become evermore linked with strong financial performance. Those that identify the advantages of low carbon operations now, and work within the existing framework will be the ones that benefit in the future”.
Eight out of Ten Scots Unsure what Their Paying for Their Energy
March 17, 2008 4:10 pm
A survey carried out by the Energy Saving Trust has reported that eight out of ten people living in Scotland currently don’t know how much they are paying for their gas and electricity.
The survey results showed that the Scottish respondents found their energy bills to be twice as confusing to understand than phone bills, and four times more confusing than credit cards bills or bank statements.
The findings have led the Energy Saving Trust to call for more investment in Smart Meters, which monitor the amount each household appliance costs to run, in order to cut bills and help fight climate change. When asked if they would be interested in having the device fitted, 50% said they would.
The trust has laid out the case for having smart meters installed in order to help customers save money and to reduce the effects of energy use on the environment. It said the introduction of smart meters will reduce carbon dioxide emissions in Scotland by 690,000 tonnes, based on energy savings of 5%. The trust said the meters will cost householders between £100–200 if they were mass produced.
Although smart meters have been trialled in America and Sweden, they are not yet widely available in the UK.
Mike Thornton, the trusts Scottish director, claims the lack of transparency over energy usage is one of the biggest problems in the UK’s fight against climate change. “Without the uptake of smart metering, this situation is not going to change any time soon. The current situation is hard to believe, especially with the recent rise in household fuel bill”, he said before continuing, “Most people would never go on a mobile phone tariff if they didn’t know how much it would cost”.
Mr Thornton also urged the Scottish government to try and influence UK ministers so that the meters can be rolled out in Scotland. He said, “If the UK really has aspirations to be a world leader in the fight against climate changes, then smart meters have to be part of the solution”.
Duncan Sedgwick, chief executive of the Energy Retail Association agreed with Mr Thornton’s comments that smart metering can help customers do their bit for the environment, “We urge the government to give us the mandate to make smart meters happen for customers” he commented.
EU Meeting to Agree Emission Cut Plan
March 14, 2008 10:51 am
European leaders are meeting in Brussels to endorse measures for cutting greenhouse emissions.
The summit is being chaired by Slovenia’s Prime Minister, Janez Jansa who has said that the leaders have approved a timetable to cut emissions by 20% by 2020. Mr Jansa also said that leaders are supporting a report by EU foreign policy chief Javier Solana which warns of potential security concerns which may arise from global warming. The report states that climate change is expected to have a major impact on global security with increasing threats of shortages of food and water.
The report also warns that climate change may cause millions of people to migrate to Europe as other parts of the world suffer environmental degradation.
The summit is also looking into liberalising energy markets which is turning out to be a contentious issue. Both France and Germany are currently leading a group of countries which are hostile to calls for the break-up of the big energy companies who run both power stations and distribution networks. Jose Manuel Barroso, European Commission President said, “there is a general understanding that a European energy market is linked to having a secure supply and promoting renewable energy”.
However, the UK’s prime minister, Gordon Brown’s idea of cutting tax on green goods such as low-energy light bulbs is unlikely to succeed. Mr Barrose said that some countries do not agree with the idea, which he has described as a “very sensitive issue”. He did say however, that he does not want to dismiss the importance of positive discrimination for such products, but alternatives such as rebates would probably be more suitable.
Fossil Fuel to Continue to Generate Energy
March 13, 2008 12:58 pm
The UK’s business secretary has stated that fossil fuels will continue to play an important role in generating the UK’s electricity, despite growing investment in renewable sources.
John Hutton made the statement at a London conference, although he also claimed that the use of coal-fired power stations will not undermine Britain’s efforts to tackle climate change.
He explained that in order to meet demand, supplies and sources of electricity for commercial and household users need to be flexible for short term production increases. “Neither wind or nuclear can fulfill this role. We therefore will continue to need a back-up from fossil fuels with coal a key source of that flexibility, as we increase the proportion of renewable energy in our electricity mix”, he went on to say.
Mr Hutton’s comments have come after it was reported that the Department for Business, Enterprise and Regulatory Reform is considering how it can encourage households and businesses to use microgeneration.
A spokesperson for the department has stated that current projections suggest that there will be a shortfall in applications for renewable grants in the coming months.
Commercial Energy Users May Not Be Protected
March 12, 2008 5:44 pm
Some businesses may in future be excluded from receiving protection in energy disputes under new plans for the Energy Onbudsman Scheme, according to industry watchdog Energywatch.
Energywatch have said that the proposed measures for the initiative will lead to businesses being increasingly referred to the Onbudman to resolve any problems they might have with commercial suppliers.
However, Energywatch also claim that only companies using less than £5000 worth of gas and electricity annually will be eligible for help from the new service, which will leave small businesses, particularly within the pub sector particularly exposed to poor deals from their suppliers.
The body’s director of campaigns, Adam Scorer said, “We see no sign that energy suppliers are getting to grips with the major issues of mis-sold and punitive contracts and poor information on price and service. Robust complaint handling standards, coupled with an accessible redress scheme need to be available to more businesses, not less”.
Energywatch have called for a fairer system after research also claimed that household customers using prepayment meters are charged more than online clients for their energy.