Discover the energy data goldmine PDF Print E-mail
Written by IM Serv, July 2005   
Energy data is a goldmine of information waiting to be exploited and the best way to gain access to accurate and timely data is through automatic meter reading solutions - ultimately leading to better management of energy use. In the last 12 months alone, energy prices have shot up by over 15 per cent and predictions for the next five years suggest they are expected to rise by nearly 40 per cent on top of this.

Whatever the size of your business, increases at this level have a major impact on profit margins and business planning. How then can companies identify the best way to manage their rising energy bills and drive forward improvements to help deal with climate change at the same time?

Where do I start?

In many businesses, energy management falls under the remit of the facilities manager, as it is often only the larger organisations that have the budget and the infrastructure for a dedicated energy manager.

Juggling everything from office furniture to car parking to vending machines means it can be difficult to keep tabs on what is going on, but when it comes to energy efficiency there is a very easy way to stay on top of costs.

The key is to make better use of accurate and reliable energy data - the facts and figures that come from your electricity, gas and water meters. Energy data is a goldmine of information waiting to be exploited. There are huge opportunities for cost savings and efficiencies simply waiting to be discovered. It is just a question of putting the right tools in place to achieve them.

This is a view shared by the Carbon Trust, who says lower energy costs can bring immediate savings to the bottom line, therefore increasing profitability. It says a 20 per cent saving in energy consumption is realistically achievable by most businesses - having the same positive effect as a 5 per cent increase in sales.

What exactly can be done?

The best way to gain access to accurate and timely data is to make use of automatic meter reading solutions. Automated readings provide an accurate stream of energy consumption data with detailed profiles for the different utilities used on-site. This visibility allows for much better management of energy use - identifying leaks, left-on equipment and anomalous loads suddenly becomes possible. Sites can also be benchmarked against other sites and industry best practice. The same data provides further benefit by enabling energy spend forecasting, bill validation, improved energy buying power and the meeting of environmental targets.

Automated meter readings also remove the problems of manual meter reads and estimated bills, which too many companies have put up with for too long. Estimated bills are a source of strong dissatisfaction among customers and even a small discrepancy can have a serious effect on cash flow in the longer-term. And that's to say nothing of the time and trouble it can take to resolve a dispute over an incorrect bill.

Removing the need for a meter reader to visit sites is especially important in secure or sensitive areas, such as schools, banks or hospitals. It also saves the time and resources spent organising and hosting meter reader visits.

The importance of independent energy data

Companies should remember that they have a right to choose who provides their data. Working with an independent data collector brings distinct benefits.

Figure 1. Significant savings can be made through energy management

Every company has the right to receive stand-alone, independent figures about their energy usage. Businesses can improve their bargaining power with their suppliers if they have detailed and reliable load profiles to quote against and the only way they can do this is if the information comes from an independent third party. Transparency of information and total independence are essential to ensure quality and integrity.

Accurate data also means suppliers can reduce the risk premiums that they build into their quotes, saving customers as much as 10 per cent on their raw energy price.

Tackling the environmental challenge

It's not just saving money that is important. Today, the environmental challenge looms larger every day. Businesses need to be working towards the achievement of environmental improvements to reduce emissions and control consumption in response to climate change. Having accurate data to benchmark energy usage and forecast more accurately has an important role to play in this.

Having the right tools

Online data presentation tools make the whole process much easier. Customers have online access to their energy data. They can see actual and estimated consumption and compare this against calculated profiles. Reports on energy consumption from individual or multiple sites can be compiled, analysed and sent automatically by email.

A broad cross-section of users benefit. For energy customers, energy and facilities managers and energy brokers, online tools are essential to help them monitor consumption, reduce inefficiencies, verify bills and improve bargaining positions with suppliers. They offer real and cost-effective solutions that work well across all utilities, controlling electricity, gas and water costs at the same time.

Getting the most out of the data

Some customers, such as Boots, have developed their own in-house software that utilises data and helps their energy management team reduce costs and improve efficiency. With the right data and tools, companies can go a long way down the road to energy efficiency.

There will be some organisations who need additional expertise to fully realise the benefits that can be achieved and they can be offered that support through energy partners. One such partner is energy management consultancy Orchard Energy. Rachel Henderson, Managing Director of Orchard Energy, says: "We sit down with our clients every month and analyse their consumption levels, comparing them with previous years.

"If consumption has gone up, it could be for a positive reason like an increase in manufacturing. But if it's for a reason we don't understand, we can proactively look at the figures and advise the client on steps they can take to reduce costs."

Another major benefit of using online tools is that you have one central source of energy data. Otherwise companies or energy management consultancies have to go to each supplier and ask for the data individually. With all energy data coming from one source, companies can save time and administration costs, as well as being able to select the best supplier deals.

More efficient energy management

No one can afford to ignore the benefits of timely and trustworthy energy data. While there is nothing organisations can do about energy price rises, there's a lot they can do to remove costly problems and manage their energy use more efficiently.
 
< Prev   Next >
[ Back ]