Member Article

Save energy and save your business money

The end of this month sees the end of British summertime. With the change in seasons comes the drop in temperature and the inevitable increase in fuel consumption. It is therefore important to be aware of how and where you use most energy in the workplace, to create a plan for reducing costs.

Energy-saving ideas used in employees homes, for example not leaving lights on all night in an unused room and turning down the thermostat on the boiler a notch, should be encouraged at work. According to the Carbon Trust, a government-backed organisation that promotes the efficient use of energy, cutting energy costs by 20% can have the same bottom-line benefit as a five per cent increase in sales for many businesses.

And while the main advantages to efficient energy use are that you’ll reduce your overheads and save money and therefore gain a competitive edge over your more wasteful competitors, there are tax incentives too. All businesses that use more than ‘a domestic level of energy’ pay the Climate Change Levy, an additional charge added to energy bills. The fewer units of energy used, the lower the tax paid. There are also tax incentives available for businesses that buy and use energy and water-efficient technologies or low-emission vehicles. In addition, as a resource-efficient business, you are demonstrating a responsibility towards the environment which is a strong marketing message.

Information about the Climate Change Levy and the tax incentives are available in Business Link’s guide on ‘Environmental Tax Obligations and Breaks’. This is available on the Business Link website, as is a list of suggestions on how to save energy in the workplace – from moving furniture away from heat sources to using electric tools rather than compressed air-powered ones and filling unused areas of freezers with bubble wrap. A lot of it is common sense, but take a walk around your business and look at enery usage from an outsider’s point of view. You may see things in a different light (an energy efficient light of course!)

For Business Link services in your local area, call 0845 600 9006 or visit www.businesslink.gov.uk. Business Link services in the North East are supported by the European Regional Development Fund, through the Government Office for the North East, and One NorthEast.

This was posted in Bdaily's Members' News section by Ruth Mitchell .