Harvey Sinclair, eEnergy Chief Executive
UK public sector organisations are under pressure to do more for less. That was the message recently from management consultants hoping tighter government spending this year will spark more work, as departments and local authorities seek help with cost-cutting and restructuring.
Following record levels of government borrowing in recent months, ‘easing the squeeze’ will be front of mind for businesses and the public sector ahead of the Chancellor’s Spring Budget next month.
Excess energy expenditure
When it comes to energy, the country faces an epidemic of waste, particularly within public sector. Every year a significant proportion of the energy purchased by schools, hospitals, council buildings, prisons and other large public sector premises is either lost or used inefficiently. This isn’t limited to the public sector; studies suggest that 30% of energy consumed in commercial properties is wasted through a combination of out-of-date and inefficient equipment, poor insulation, and behavioural factors.
According to the Let’s Go Zero schools campaign, 60% of energy used by schools is wasted out of school hours. UK education buildings alone waste £860 million in energy annually. Energy wastage is impacting already squeezed budgets, potentially putting patient care and safety in jeopardy.
This current scale of energy waste also coincides with a time of unprecedented industrial action by nurses, paramedics, teachers, fire brigades and public sector workers. It stands to reason that less money lost to energy waste could support ongoing negotiations.
It’s also costing British taxpayers billions every year, yet much of it is unnecessary and could be easily eliminated. But it’s not just about price. Simple efficiency measures can also significantly reduce the carbon emissions of buildings, supporting the route to Net Zero.
So, what can be done about it?
You can’t manage what you don’t measure
Knowledge is power and prevention is better than cure. Any effective, practical action plan to reduce energy spend must begin by identifying energy wastage through a granular measurement system.
Intelligent metering solutions for businesses, such as eEnergy’s MY ZeERO, go beyond “smart meters” found in homes and businesses, providing data on the exact usage and cost – down to the penny – of energy consumption by every asset within each area of a school, hospital or other public sector premises.
This data ensures users aren’t left attempting generic actions to reduce costs – or worse, paralysed by a lack of actionable insights.
Leveraging data-led insights
Using data and insights provided by solutions like MY ZeERO, organisations can also implement specific behavioural changes to instantly reduce waste.
For example, if data shows a disproportionate amount of electricity use out of hours, this could suggest that lights are being left on at the end of the day, or that equipment is running when not in use. Steps such as installing timers in combination with energy-efficient LED lighting can save thousands of pounds a year, cutting down otherwise ‘invisible’ waste.
Granular energy measurement will also identify where machinery or appliances are wasting energy by being left switched on or on standby, or through inefficiency or misuse. For example, using data from MY ZeERO, one London school realised a service elevator was being used by pupils. Shutting off access to everyone but the caretaker saved £2,000 a year alone.
Driving technology efficiency
In addition to energy-saving measures, public sector organisations can invest in technology to further reduce bills.
Lighting typically represents around 40% of schools’ energy bills. Simply replacing standard lighting with energy-saving LED lighting can typically reduce lighting energy costs by at least 50-55%, and often by up to 75%.
Continued measurement is vital to keep further wastage at bay and to encourage positive behaviour change among staff and other users, whose engagement and cooperation is critical to efficiency efforts.
These simple steps could provide great gains for the UK’s public sector; not least in relation to government spending and economic prosperity, but to ensure the quality of public service provision and wider national Net Zero ambitions.
We believe reaching Net Zero should be both possible and profitable for all organisations, and with MY ZeERO’s granular measurement, creating an energy action plan has never been easier. If you’re ready to start measuring your energy use and identifying savings, we’re ready to help you take the next step.
To learn more about how eEnergy can help you become more energy efficient and unlock new revenue, visit www.eenergy.com, email tracey.fletcher@eenergy.com or call 02476 998 257.