The business opportunities
How much you benefit from the CRC Energy Efficiency Scheme depends on how you sell your products and services says John Nicholls.
I read many months ago, that cattle were responsible for 18% of greenhouse-gas emissions. It seems cows don’t care about their carbon footprint. They just don’t use up much energy. You don’t see many cows sprinting across a field.
Breaking up the herd mentality, the Carbon Reduction Commitment Energy Efficiency Scheme (CRCEES) will force some operations to reduce their carbon footprint. Others will wish to remain in the field, as opportunities with the Carbon Reduction Commitment (CRC) will not surpass the primary focus on keeping energy costs down.
Unable to analyse each vertical market in just one page, let’s apply gross generalisations, and I know I’ll get in trouble for a ‘one-size-fits-all’ approach.
I’ll start with the differences between the public and private sector.
Economic survival
Common wisdom states that it is the public sector that will see a supplier through a recession and the private sector that will see you out of a recession.
The private sector, until recently, has seen the brunt of the recession, but the switch between the two is accelerated as the public sector receives the attentions of the Coalition Government. Many companies have recently reported the cancellation of public-sector contracts.
The BMS (building management systems) industry, especially with the disintegration of the Building Schools for the Future (BSF) programme, will need to move to the private sector from the public sector. This means focusing more on CRC improvements rather than the straight reduction of energy bills. The art of the supplier is to move business emphasis at the right time, even though the end product may still be the same.
The public sector
The public sector is likely to keep its bovine tendencies and continue to focus on energy, especially following increased pressure from the Government to cut utility costs. A traditional energy strategy is therefore required, rather than a revised emphasis on reducing carbon footprint. Some organisations may get caught up in a CRC league table initiative, but this should not be universal across the sector.
I am trying not to compare everyone to cows and lose friendships. Continuing the outdoor theme, however, the education sector currently loves its fresh air. It is focused on the implementation of natural ventilation, window control, the management of CO2 in classrooms and better user interfaces across the premises.
Along with the health sector, its need for energy reduction is simply driven by cost cutting. Even a simple re-commissioning of the BMS can produce huge savings, as its original parameters may well bear no resemblance to the current building set-up.
The private sector
The private sector will have a two-tier approach. Some will continue to graze, whilst others will want focus on their carbon emissions. The commercial world cares about getting the product or service out of the door. Energy usage is a small portion of product costs and is unlikely to appear on the radar unless it has an effect on sales. Cattle tend not to worry about public perception, but a poor brand image in the commercial world can hinder sales. If CRC league tables are affecting reputation, then business cares. So let’s continue our broad-brush approach and divide the private sector into two camps.
Certain organisations, perhaps household names and larger corporations, care about their standing in the world and where they compare to their competitors. With the CRC league tables coming out, one supermarket will wish to look greener than its rival and not wish to appear low down on the table. Financial operations, consultancies and other service operations supplying some sort of energy offering would wish to appear green themselves and at the top of any league table produced. A carbon-reduction emphasis is therefore required when pitching your BMS.
Previously, the private sector reasoned purely on: ‘What is the return on investment payback?’ Now, a more complex conversation involves: ‘How much will it reduce my carbon emissions? Will this reduction be made year on year? Will the data be accurate?’ The next question is: ‘What is the return on investment?’
Other private organisations, perhaps small to medium enterprises (SMEs) or companies that do not have to worry about their public persona may not have CRC high on their list. These companies may be treated more like a government operation as stated earlier, with a need to reduce energy (as long as it doesn’t get in the way of getting the product out of the door). Some SMEs may wish to break free of the herd and turn CRC into a positive, by using the CRC league tables to raise their profile.
The leisure and retail industries do not want to implement anything that will be detrimental to occupant comfort, brand image or footfall. However, a poor CRC standing would hurt brand image. The activity within the leisure industry is not constant, it varies by the day, week and season — so opportunities lie in energy scheduling and implementing technology, such as presence detection in lighting control.
Summary
Whether the pitch is reducing utility bills or moving up the carbon footprint table, the BMS control techniques applied and end results are the same. Customer motives will vary, but a one-sales-pitch-fits-all approach is lazy and not going to help controls companies survive a recession.
The controls industry will enjoy a better recession if it is not only energy savvy, but also recognises the different nuances when selling the same thing to different markets.
I was going to end where I started, with a cow analogy, but I’m not in the mooo-d.
John Nicholls is a director with BG Controls.
