Energy: Power struggle

Saving energy is not just environmentally-friendly - it could also save you lots of money - and it's easier to do than you might think, writes Phil Mellows.

Global warming has risen quickly to the top of the political agenda and there is a big push for businesses of all sizes to play an active role in reducing the amount of carbon dioxide we release into the atmosphere causing the notorious "greenhouse effect".

But there's more to it than protecting the future environment. Businesses that reduce carbon emissions can also save on their energy bills in the short-term - and there are grants available to help them do it.

With energy prices predicted to rise by up to 30 per cent next year and winter approaching, there's no better time to have a think about what you can do to reduce your bills.

The Carbon Trust, formerly known as Action Energy, is an independent company funded by government that aims to help the UK move towards the low carbon economy envisaged by the 2003 Energy White Paper that set the country a target of reducing carbon emissions by 60 per cent.

It is working closely with the hospitality industry's own initiative, Hospitable Climates, to improve energy efficiency and believes the sector could save a total of £128m. The 4,000 members of Hospitable Climates have, since 2000, already saved more than £14m between them.

Each pub could cut its fuel bills by 20 per cent by taking a few simple measures and, with more investment, the savings can reach 40 per cent.

The Carbon Trust offers businesses a free survey of their energy usage and recommends a variety of low cost or no cost energy efficiency measures.

Smaller firms can apply to the Carbon Trust for an interest free loan, payable over four years, to carry out upgrades or replace equipment. Drawing from a £10m fund, loans of between £5,000 and £100,000 are available to successful applicants.

Both The Carbon Trust and Hospitable Climates produce energy saving advice tailored to pubs and the hospitality sector.

Get in touch for more information:

• The Carbon Trust​ - www.thecarbontrust.co.uk or 0800 585794
• Hospitable Climates​ - www.hospitableclimates.co.uk or 020 8661 4901.

Take a more systematic approach​

Cutting your energy bills by up to 20 per cent need not cost you anything at all, according to The Carbon Trust. And you might also find that simple energy saving measures make your staff and customers feel more comfortable.

Start by identifying your hotspots for fuel usage so you know where the most savings can be made. In the average pub half the energy costs go on heating and lighting, equally split between the two. Another 20 per cent typically goes on the cellar and catering and hot water may take another 20 per cent between them. The remaining 10 per cent is used by other appliances.

Take a systematic approach to driving energy saving measures, perhaps assigning the job to a member of staff.

• Find out how much you are spending on fuel. This will give you a base figure by which you can measure your success
• Check heating and cooling controls to make sure they are set at the appropriate temperatures
• Draw up some good housekeeping practices such as turning off lights and equipment when you don't need them. You can put signs up around the pub to remind staff
• Go round the pub and make a checklist of where energy savings can be made at different times of day, including after hours. You can get an example checklist from The Carbon Trust
• Raise awareness of energy-saving among staff. Call 0800 585794 for a free energy awareness pack from The Carbon Trust.

Here's how you can save costs in your key energy usage areas:

Heating​

• Check your timer settings to make sure the heating is switched off outside peak trading hours, such as in the morning or the middle of the afternoon
• Every degree of overheating will increase your bill by eight per cent. Check the thermostats and radiator settings in each room of the pub. If it feels too hot, simply reduce the temperature. If you have letting rooms remember they can be kept as low as 14?C when empty without risking dampness and condensation.

Lighting​

• Energy-saving light bulbs use only a quarter the fuel of ordinary bulbs
• Colour code your light switches so staff know which lights they need to switch on, rather than lighting up the whole pub every time.

Refrigeration​

• To keep running costs to a minimum don't put fridges, freezers and ice makers in the cellar, in direct sunlight or close to ovens or radiators
• Don't leave doors to fridges and freezers open any longer than necessary, stock up as quickly as possible
• Don't set chiller cabinet temperatures any lower than you need to. Every extra 5?C of cooling can add 10 to 20 per cent to your costs.

Energy use in pubs​

Breakdown of energy use in an average pub (The Carbon Trust)​

Switch and save​

As well as reducing the amount of energy you use, you can also save money by switching your suppliers, as Mark Todd, director and co-founder of energyhelpline.com, argues.​

Whether your pub is full of sleepy old-world charm or Saturday night students, the chances are it uses a lot of energy. Pubs are designed to be enjoyable and, as a result, they're not always the most energy-efficient establishments. Lighting, jukeboxes and TVs, combined with heat rushing out the front door with each customer's arrival and departure, all add up to high energy bills.

It is estimated that 60 per cent of businesses are paying too much for their energy - and pubs are no exception. However, in many cases a simple switch of providers could yield savings of between 10 and 25 per cent. This means a single pub could be paying £1,000 a year more than it needs to. With energy prices predicted to rise substantially in 2005, publicans should be taking a serious look at their utility costs.

Many businesses use their local energy supplier and have never considered an alternative. But local suppliers are not always the cheapest. With 32 different energy suppliers in the UK and hundreds of potential tariffs available the current marketplace can appear extremely complex and confusing. In addition to the sheer variety, energy suppliers can make it difficult for their customers to change to an alternative provider.

One way energy providers retain customers while charging them more is by using "evergreen" contracts. A recent introduction, these contracts automatically roll customers into new agreements - usually at a higher premium - on the renewal date. In cases like these, the suppliers are counting on customers not to shop around for a better deal. Yet for those who do shop around, there are significant savings to be had and the actual switch between energy providers is extremely simple. There is no interruption to the power supply and no pipes, wires or meters need to be changed. Whatever the size of your operation, selecting the right energy provider can help you save money.

Here are a few tips for those who want to get serious about saving.

• Shop around:​ With over 30 different gas and electricity suppliers all offering different rates and pricing structures, there is a perfect plan for you out there. If this sounds too time consuming or tedious, you might want to consider using an independent price comparison service

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