With the introduction of the Climate Change Levy in April 2001 (a new tax on energy use in industry, commerce, agriculture and the public sector) and the recent UK government PIU report suggesting that up to 30% of energy - the equivalent of £12 billion per annum - is being wasted, there has never been a more important time for businesses to address energy efficiency. Through Action Energy, organisations from multinationals to small businesses (including not-for-profit and public organisations) will now be able to receive free and impartial advice on how to save money by reducing energy use. As well as the clear commercial advantages, companies can also maintain their corporate social responsibility.
Experience has shown that business energy bills can often be reduced by up to 20% using a variety of energy efficient techniques, many of which involve little or no expenditure. Action Energy has been established to help all organisations achieve this. The services offered include a free helpline providing expert advice, online information, publications providing basic to technical information and free energy surveys to identify opportunities for energy savings. Action Energy has placed strong emphasis on supporting smaller businesses through the provision of tailored, practical and simple-to-implement advice and a network of advisers, set up in association with the Energy Saving Trust to cater specifically for the needs of companies at a local level.
Small and medium-sized companies in England and Wales that require capital investment to become more energy efficient, can also benefit from the new £10 million of interest-free Energy Loans - these are available in loans of between £5,000 - £50,000, repayable over four years. The scheme builds on the success of similar schemes which already operate in Scotland and Northern Ireland.
A further financial incentive available to all businesses is provided in the form of Enhanced Capital Allowances (ECAs), which encourages businesses to invest in energy saving equipment. The Carbon Trust is taking over responsibility for managing, promoting and monitoring the Government ECA Scheme. Businesses can claim 100% first year capital allowances on investments and write off the cost of their investment against taxable profits for the period during which they make the investment.
(Lee Baldock)
