"Make do and mend"costs British business £3bn a year
October 1st 2009 Theo Paphitis and the Carbon Trust launches Big Business Refit – a scrappage
scheme for power-guzzling equipment
British businesses are being
forced to "make do and
mend" with old, inefficient
equipment, as over half (52%), don't
have the cash to upgrade it. Well
over half of small and medium-sized
businesses (60%) wait until their
equipment breaks down completely
before replacing it.
The problem is costing businesses
£3.3bn a year in wasted energy
according to the Carbon Trust. It
was revealed in a survey of 1500
small and medium-sized businesses
at the launch, by Dragon's Den star
Theo Paphitis, of the Carbon Trust's
Big Business Refit campaign.
The Big Business Refit aims to help
businesses to scrap their old powerguzzling
equipment and replace it
with new equipment that's more
efficient and cheaper to run. It
provides expert guidance, plus
financial support in the form of
£100m in interest free funding, which
can be paid back through the energy
savings the new equipment delivers.
Theo Paphitis said:"The Big
Business Refit calls on all UK
businesses to scour their premises
for old equipment, from air
conditioning, to fridges, compressors
to factory machinery. With interestfree
funding available to replace
equipment, leading to average
energy savings of 15%, and no
security required, it's an
unbelievable deal."
The Big Business Refit runs until
31 March 2010. It offers advice on
identifying old equipment, and
guidance on suitable replacements
in clinics in UK cities, including
London, Birmingham,Manchester
and Belfast. Businesses can get
expert advice, a free energy saving
assessment, or apply for interest free
funding by calling 01865 885879, or
visiting www.bigbusinessrefit.co.uk
The survey shows that around
half of businesses are missing out on
the opportunity to reduce bottom
line costs through energy efficiency:
Over half (57%) have resorted to
staff cuts to save cash.
Nearly half (46%) are unaware
that they can cut energy costs by
replacing old equipment.
Nearly half (41%) have accepted
higher energy bills as a fixed cost,
preferable to paying the upfront
cost of replacing old equipment.
One business that has already
saved by scrapping its old
equipment is Yorkshire-based
Flexible Packaging Printers, Roberts
Mart & Co. Ben Roberts, sales
director, said:"We've taken
advantage of two Carbon Trust
loans, totalling over £300,000, to
replace printing press drying
systems, a boiler and lighting. As a
result,we're saving around £130,000
a year on our energy bills, plus
around 900 tonnes of CO2.The
Carbon Trust loans scheme has been
a simple and effective way for us to
modernise our business, and reduce
costs in the recession."
The Federation of Small
Businesses (FSB), the Institute of
Directors (IoD), the British Chambers
of Commerce (BCC), the Mayor of
London, and the Department of
Energy and Climate Change (DECC)
have all pledged their support for
the Carbon Trust's Big Business Refit.
David Caro, FSB Energy &
environment chairman,said:"Due to
their size, small businesses are in a
unique position to adopt energy
efficiency measures more easily and
quickly than their larger counterparts.
However, small business owners are
often limited by time constraints and
are not always aware of where and
how to access advice on how to go
green. The support of the Carbon
Trust can help small businesses play
their part in being energy efficient
and cutting costs, saving money and
boosting their own enterprise."
Miles Templeman, director
general, Institute of Directors, said:
"The Carbon Trust's loan scheme
gives small businesses access to the
capital they need to unlock their
future growth potential."
Energy and Climate Change
Minister David Kidney said:"We're
helping small businesses survive the
recession by providing a practical
solution to save a total of £40million
from energy bills. Replacing old
equipment with energy efficient
versions will also reduce carbon
emissions, combating global
warming."
The Carbon Trust's unsecured,
interest-free loans can be used for
equipment replacements costing
between £3000 and £400,000. The
loans are designed to pay for
themselves through direct energy
savings, so that once the loan is
repaid, savings go straight to
bottom line. With a total of £100m
in funding available, the Big Business
Refit is expected to help up to 3,000
UK SMEs save a total of £40m from
their annual energy costs.
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