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How much does it cost to run an office?

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Electricity makes the world go round – and the office. Finder.com recently published a compilation of the latest statistics that reveal how UK businesses consumed and spent money on energy over the last year. It’s a useful piece of information as it enables business owners who might be worried they’ve overspent to see where they sit on the scale of average.

The cost of running your office is dependent on many factors but the average cost for a micro, small and medium office is as follows:

Micro – Electricity: 5,000 – 15,000kWh (£1, 062); Gas: 10, 000 kWh (£430)

Medium – Electricity: 15,000 – 30,000kWh (£2,038); Gas: 25,000kWh (£856)

Large – Electricity: 30,000 – 50,000kWh (£3, 146); Gas: 45,000kWh (£1,424)

The appliances that are cost offices the most are:

Appliance                   Percentage of total electricity bill

Air Con                        29.15%

Light Fittings               26.12%

Computers                  10.1%

Vending Machine        6.05%

Water Cooler              6.05%

Kettles                         4.66%

Fridge                          3.33%

Printers                       3.02%

Hand Dryers                2.59%

Microwaves                1.73%

TV Screen                    1.71%

Laptops                       1.27%

Dishwasher                 1.04%

Toasters                      1.04%

Coffee Machine          0.86%

Desk Fans                    0.48%

These statistics offer insight into where businesses can cut back on costs when it comes to running an office or perhaps even invest more if the budget allows.

For all your energy related questions, feel free to contact the CH Systems team on 0208 302 8149 or info@chsystems.cc.

How a sustainable water strategy will save your business money

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The conservation of energy has been a hot topic for the last few years. The effects of global warming have forced the world to take note and take action; governments, businesses and home owners have been (correctly) burdened with the social responsibility to do what they can to reduce their carbon footprint.

Energy – gas and electricity – is an obvious expense on a balance sheet and so most businesses are naturally inclined to focus a great deal of effort on finding ways to minimise this expense. As it so happens, decisions made for economic reasons often turn out to be the sustainable route as well, a happy coincidence, but there is a cost that companies often overlook, and that is water.

Water is usually overshadowed by the price of energy but it bears hidden costs that it would benefit businesses to take note of, such as the carbon and monetary costs of supplying that water, heating it and treating it after use. In other words, water is intrinsically linked to energy use and carbon emissions – so why aren’t we trying harder to save it?

Recent estimates suggest that if we continue business as usual, global demand for water will exceed viable resources by 40 per cent by the year 2030. Policymakers are thus under pressure to tighten water regulations amidst growing concern about scarcity and pollution. As an outcome, businesses will be compelled to implement sustainable water strategies. This means recycling more water and looking at new ways in which to develop goods and services with a much smaller water footprint. And for smaller companies, awareness is a good starting point.

Martin Stuchtey, director of the McKinsey Center for Business and Environment, says that businesses need to shift to a circular economy for water:

“We need a completely new mindset of not contaminating water in the first place. We need to treat it like a durable and keep it in closed loops; or like a consumable, but return it in a way so that it is cheap or beneficial to take into second or third use.”

Companies should start to look beyond their fences; to collaborate with others – experts in the field – and encourage respective suppliers, partners, customers and others to work with them in their effort to implement water-saving plans. Industry sectors also need to join forces to manage water more efficiently, Stutchey argues:

“There might be ways that a handshake between the agriculture and industries might provide the better solution. Industrial grey water, if it’s not too contaminated, could in fact be an interesting input into agriculture. We need to go across sectors and manage water in more effective and circular ways.”

The good news is that an effective water management plan can transform the economic prospects of a business – if ever there was an incentive!

For more information on water sustainability or any plumbing-related issues feel free to contact the CH Systems team on 0208 302 8149 or info@chsystems.cc

Sources: Theguardian.com – “A sustainable water strategy is good for business”; “Six thing business needs to know about water and sustainability” and Mckinsey.com – “Rethinking the water cycle”

Could businesses claim VAT reductions on energy efficient materials?

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The election is a stone’s throw away and energy issues are hotting up as politicians look to secure votes. Big news of the moment is a statement released by the Energy and Utilities Alliance (EUA), which is calling on all political parties to set VAT at 5 per cent for all energy efficiency materials and the installation thereof.

Mike Foster, Chief Executive of EUA, argues:

“Successive Governments promote energy efficiency measures, encouraging homeowners to install everything from insulation, new boilers to state-of-the-art controls yet there are huge anomalies in the levels of VAT charged.

Installing a new control, as a one-off job, would attract VAT at the lower rate of 5 per cent, making it attractive to the consumer yet installing the same control, as part of a wider system improvement, would attract VAT at the standard, 20 per cent rate. The current system is inconsistent and sends out mixed messages to consumers and it needs clarification.

Green Deal, ECO and other energy efficiency policies have failed to deliver, simplifying the VAT rules around products and their installation is something that could be done reasonably easily, it would provide real help to hard-pressed consumers.”

Foster’s point clearly targets home owners but what about businesses that have turned their companies into ethical and sustainable entities, costing both time, effort and an initial pay-out? If home owners were to receive a VAT reduction incentive should business owners not be afforded the same privilege?

Company VAT is normally chargeable at 20 per cent but your business may be liable for less if it satisfies certain criteria, namely de minimis (low energy consumption), which is applied to businesses with electricity demands below 33kWh per day or 1,000 kWh per month (on average) or gas consumption below an average of 145kWh (5 therms) per day or 4,397 kWh (150 therms) per month – these businesses will qualify for a reduced VAT rate of 5 per cent. (The assessment of your consumption can be made by you or by your supplier, as a meter reading or as an estimate.)

The next question to consider if businesses were to be made eligible for some sort of VAT reduction is what type of energy efficiencies could be implemented (with the added intention of reducing costs in the long term)? Things like state-of-the-art controls (for heating and hot water), new boilers and insulation (around windows, doors, walls, floors, ceilings lofts) have been mentioned but other ideas that will be relevant to your business in context are:

• Wood-fuelled boilers
• Micro combined heat and power units
• Solar panels
• Ground-source heat pumps
• Air-source heat pumps
• Wind turbines
• Water turbines

Again, businesses have not been mentioned in EUA’s reduced VAT proposal but it’s a space worth watching! And in the meantime, for more information on how to up your business’s energy efficiency (products and installation) feel free to contact the CH Systems team on 0208 302 8149 or info@chsystems.cc.

Sources: uea.org.uk – “Reduce VAT to 5% on all energy efficient materials and their installation” and simplybusinessenergy.co.uk – “Electricity and Gas Bills – Understanding VAT”.

Why accurate metre readings will cut business costs

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One way to reduce your business overheads is to provide accurate readings from your energy meter – both gas and electricity.

Reading a meter is a quick task that might seem menial and is thus easily overlooked but if you do not supply meter readings, your supplier will work out your bill according to an estimate. Estimates are normally quite accurate but accuracy is preferable, especially when you are paying for it.

If you, the business owner or manager, are in control of the supplied readings, you’re sure to be paying only for the amount of energy you use. You’ll get up to date, accurate energy bills, without the risk of paying too much or too little (which can come along with an unwelcome surprise!).
Another good reason to submit regular meter readings is that you’ll be immediately aware of anything strange going on with the appliances that fuel the energy used by your business – perhaps your boiler is faulty or the lights are being mistakenly left on, or the like, resulting in an unusual reading, which affords you the opportunity to figure out the problem and correct it timeously.

The easiest way to submit a meter reading is online but it can be done over the phone as well (although we all know how annoying being placed on hold over a busy line can be). If there is just no way that you can allot time to meter reading, a good solution is to appoint someone to be in charge of energy consumption – and then you get the result without the hassle.
And if your micro-business does not have the time or spare bodies to read meters, what about a smart meter?

A smart meter is a ‘next generation’ energy meter that will send electronic meter readings to your energy supplier automatically – for both gas and electricity. Some of them even come with ‘in-house’ displays that give you real-time feedback on your energy usage and what it is costing, allowing for better oversight and management of your energy use.

Although the smart metre itself won’t save you money, it will save you the time it takes to submit an accurate meter reading – and it is this accuracy that will reduce your business overheads.

Your energy supplier will outfit your business premises with a smart meter, so give them a call to find out whether they are doing smart meter installations as it’s a relatively new scheme.

For more information, feel free to contact the CH Systems team on 0208 302 8149 or info@chsystems.cc