Jamie Watkins of Remote Utility Monitoring and Management (RUMM) discusses the potential financial and environmental benefits to businesses of using energy management solutions.

• What are the implications to businesses of the recent rises in energy costs?
• How can businesses save money on their utility costs and help the environment?

 With the credit crunch looming and financial horror stories ever present in the media, most of us are busy seeking ways of cutting costs.

We may consider the obvious like purchasing supermarket own products for our weekly grocery shop instead of the luxury brands, or perhaps the less obvious like riding a bike to work rather than driving the car.

Whatever we consider, the likelihood is that we are going to feel a lot more comfortable if these changes have little impact on the quality of our lives and how we go about our daily routines.

The same, of course, is happening in industry with many businesses now in a situation where cost reduction is absolutely crucial to their survival.

A recent report commissioned by Centrica, the UK's biggest energy supplier, has estimated that fuel bills are set to rocket by more than 60 per cent in the next few years.

This could have serious implications for industry, and the Business and Enterprise MP Select Committee has warned that thousands of manufacturing jobs in the UK may be at risk if prices stay higher compared to the rest of Europe.

The latest figures show that UK businesses are wasting a staggering £140m per day alone because of inadequate energy efficiency.

This is a statistic that causes real concern not just in relation to cost implications but, perhaps more significantly, in terms of corporate social responsibilities and current environmental legislation that affects businesses.

Encouragingly, all the recent signs are pointing towards businesses adopting a much more green approach to energy consumption by looking at ways in which they can reduce their carbon footprint and in turn beat the credit crunch by saving themselves money on their utility bills.

According to a recent Carbon Trust online poll of UK companies, energy efficiency was ranked as the number one cost-cutting priority for combating the downturn in the UK economy.

Businesses now rate energy efficiency as their most effective method of reducing costs, placing it higher than other measures identified such as redundancies or freezing staff pay increases.

Figures also released by the Trust have highlighted that UK businesses could save almost £50b per year alone simply by putting effective energy efficiency measures in place.

Many experts believe that businesses need to act now to identify where energy savings could be made within their organisation.

There are a number of simple measures that could be adopted by companies in order to make immediate reductions in energy consumption, many of which cost nothing or very little.

For instance, switching off lighting could save as much as 15 per cent off a company's annual electricity bill while turning off one PC when not being used could save up to £35 a year.

Yuasa Battery UK is one company that has reaped massive rewards from the implementation of energy-saving measures.

Yuasa Plant Director Richard Davies stated: "I would strongly advise all companies to start thinking now about making energy savings.

“Our most dramatic achievement was the reduction in weekend electricity consumption,” he said.

Davies added, “This simple reduction was responsible for a big part of the £364,000 of savings we achieved during year one of working with specialist energy consultants."

One of the most effective ways companies can significantly lower their energy consumption levels is by installing automatic Monitoring and Targeting (aM&T) systems that can accurately measure energy output levels within an organisation.

These systems can not only measure how much energy is being produced but can help a company to identify the exact location and time of output.

Once a company has successfully discovered where energy consumption levels are at their highest, they can take the necessary action towards lowering these levels, which will have the added advantage of reducing their utility bills.

Having this kind of information to hand can provide a massive help for many businesses who care about their corporate social responsibility and who want to take serious steps towards lowering their carbon emissions.

The reality is that following the Kyoto Protocol agreed in 1997, all organisations share a responsibility to substantially cut their emissions. The Protocol means that UK carbon emissions must fall by 12.5 percent on average during 2008-12 compared to 1990 levels.

In addition to this the UK government has set its own targets for businesses with the aim of reducing carbon emissions by 60 per cent by 2050.

This may sound heavy going but there is help out there for businesses who are aiming towards becoming 'carbon neutral' or put another way, producing net zero emissions.

The government brought in the Climate Change Levy to encourage the reduction of carbon emissions and if organisations meet their emissions targets, they could get an 80 per cent discount on the Levy.

By adopting an energy management policy, UK businesses could dramatically improve their energy efficiency levels, reduce their carbon emissions and make significant cost savings on their fuel bills.

So, with increasing concerns about rising energy costs and the environmental impact as we produce more and more greenhouse gases, it has never been a more important time for organisations to look at ways of saving money by effectively managing their energy usage and reducing their carbon footprint.

If all this sounds like a lot of hard work then be assured that there is a way of implementing an energy efficiency plan with minimal disruption to you and your business.

Speak to an energy-saving specialist or seek advice from the Carbon Trust (www.carbontrust.co.uk).

Jamie Watkins is CEO of Remote Utility Monitoring and Management (RUMM).