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CFOs Need Energy Management Strategy To Survive, Says Market Report

23/11/2009

By Lea Pachta

Chief Financial Officers (CFOs) who do not implement a comprehensive energy management strategy and ignore the imperative for more efficient practices risk their long-term survival, according to a new report.

Leading environmental consultancy Verdantix has estimated that unless British businesses tackle the unnecessary £8.5bn currently wasted on excess energy (10-20% of all energy used), then their prospects for success beyond the recession are severely compromised. New technologies like powerPerfector's voltage optimisation hold the key.

Reviewing the requirements and solutions for effective energy management strategies, the report makes for sobering reading. A combination of government legislation and supply constraints will drive up energy costs over the next few years as UK domestic energy supply becomes less reliable and more reliant on imports. The introduction of the Carbon reduction Commitment next year as legal obligation on business to reduce emissions will see carbon become a major financial metric for the first time as power quality and availability gets increasingly scarce.

"Energy efficiency has to be the main driver of future boardroom discussions," comments Dr David Metcalfe of Verdantix. "CFOs ignore the imperative at their peril. Huge amounts of energy are currently wasted needlessly and unless the problem is tackled that will become bigger as energy prices increase and supplies get less secure."

Angus Robertson, CEO of powerPerfector, one of the technologies praised in the report, added: "Solutions that deliver improved energy efficiency not only deliver commercial benefit after a short (1-3) year payback, but they positively impact environmental performance and carbon reduction targets. This is a win - win for business and failure to grasp the long term value is an opportunity missed."

Earlier this month, Ofgem highlighted the upcoming difficulties facing energy supply in the UK with a warning on price rises. "These are big challenges; early action can avoid hasty and expensive measures later," observed Ofgem chief executive Alistair Buchanan.

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