UK industry haemorrhaging almost £7 million a day due to poor energy efficiency
August 22nd 2008

Energy efficiency is now the number one cost-cutting priority for UK businesses looking to combat the impact of a potential economic slowdown, according to new research released today by the Carbon Trust.

But with UK industry still wasting almost £7 million a day on poor energy efficiency, the Carbon Trust and business groups are urging businesses to seize the potential savings on offer.

Of business leaders surveyed by the Carbon Trust, twice as many say reducing carbon emissions has risen up their agenda in the last six months than those who say it has fallen down (20% vs. 9%). And they now rank energy efficiency ahead of recruitment freezes, redundancies, freezing salaries or giving below inflation pay rises as a potential cost-saving measure.

New statistical analysis by the Carbon Trust also highlights the scale and urgency of the issue, with estimates showing that UK businesses could collectively save nearly £2.5 billion during the next 12 months, simply by implementing cost effective energy efficiency measures. And the savings are not just the preserve of large energy-intensive companies: the potential savings for SMEs alone are around £1.3 billion.

The staggering £2.5 billion figure is equivalent to:

• 13 per cent of UK companies’ energy bills

• The combined annual salaries of more than 100,000 employees on an average wage3

With almost seven in ten (69 per cent) company bosses surveyed either actively cutting costs or considering doing so, the Carbon Trust is urging them to get in touch to seek help in reducing their energy bills and their carbon emissions.

Hugh Jones, Solutions Director at the Carbon Trust, said: “Our research shows that energy efficiency measures, not job cuts or salary freezes, are the cost-cutting steps businesses are considering first during this economically challenging time. It’s an encouraging sign that wise companies are realising that cutting carbon and being green is the easiest way to make a business lean.

“Our new statistics provide stark evidence that if companies are starting to feel the bite from the economic downturn, the first place to look for cost savings should be their energy bill. There are literally millions of pounds going out of the window every day, across the UK.

“We’re talking about money that could be saved by making quick and easy changes such as encouraging staff to turn off computers and lights, turning down the heating, or maintaining equipment properly.”

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