Utility Week

28 | 17TH - 23RD JANUARY 2020 | UTILITY WEEK Customers Why energy needs to be higher on retailers' shopping lists Retailers need to be much bolder and recognise that improving energy effi ciency is an investment in the future of our businesses and our planet – not just another cost. Opinion Iain Walker T his year, the UK will host arguably the most important climate summit since the landmark Paris Agreement in 2015. As anticipation builds for COP26 in Glasgow, the spotlight is rmly on the UK. The historic step taken by the government, becoming the rst major economy in the world to pass laws to end its contribution to global warming by 2050, must be fol- lowed with further steps by industry leaders. If the UK is to meet this net zero target, it's vital that every sector takes steps to cut emissions – and that includes retail. Many across the retail industry have already made signi cant progress in their emissions reduction eˆ orts. Last year, a study conducted by the British Retail Consortium (BRC) found that a group of more than 25 of the UK's largest retailers had collectively reduced their absolute carbon footprint by more than a third since 2005. However, with the range of nancial pressures that retailers are under, energy e' ciency may no longer be at the top of many retailers' shopping lists. Energy costs among retailers' top concerns According to our new research, wholesale costs of goods (63 per cent), business rates (38 per cent), and energy costs (30 per cent) are the three biggest concerns for UK retailers at the beginning of an uncertain 2020. More than half (56 per cent) of UK retailers expect their energy costs to rise this year, but two- – hs (38 per cent) have not yet implemented energy management solutions to improve e' ciency, cut their consumption and reduce operating costs. A third (30 per cent) of retail leaders went as far as saying that energy costs aˆ ected their business competitiveness, more so than paying rent (29 per cent) or insurance (20 per cent). Many retailers are implementing lower-cost measures to help reduce their energy use. In the past year alone, 46 per cent have installed LED lighting and 35 per cent have asked staˆ to be more energy e' cient. But while these small and important steps are being taken, retail- ers need to be much bolder and recognise that improv- ing energy e' ciency is an investment in the future of our businesses and our planet – not just another cost. Cut consumption and boost your bottom line Retailers have several measures available to improve the sustainability of their operations, including on-site energy generation through roo– op solar or heat pumps, purchasing electricity from 100 per cent renewable sources, or installing a build- ing energy management system (BEMS). Despite these options, Eon's survey of senior retailers reported a continued hesitancy to invest in more impact- ful measures: only 10 per cent have upgraded their BEMS or implemented building control strategies. Mean- while, only 3 per cent have invested in on-site energy generation with the help of their energy supplier. More than a third (38 per cent) of retailers say percep- tions of the upfront cost of these technologies had put them oˆ from introducing them, while a – h (21 per cent) said they do not believe they would make a return on such an investment. This is despite the Carbon Trust estimating that a 20 per cent decrease in energy costs has the same impact as a 5 per cent increase in sales. It's important to acknowledge that improving the sector's approach to energy management is not just down to retailers. Energy providers have a responsibility to not only advise retailers on the important measures they can implement to save energy, but also reiterate both the business and environmental bene ts of such actions and system upgrades. Some of these technolo- gies can play a major role in managing a building's energy-consuming assets, including lighting and air- conditioning, enabling retailers to cut their consumption and boost their bottom line. Our energy management experts recently identi ed a high street retailer's lighting as being responsible for ine' ciencies across its stores. By working closely with its retail consultants, we connected the lighting, heating, ventilation, air conditioning and submetering systems of 550 stores to our state-of-the-art Energy Management Centre. Monitoring the energy data 24/7 enabled our experts to see how much energy it was using in each store and provide solutions to improve e' ciency – ulti- mately helping it to achieve energy savings of some 34 per cent across 550 stores. Investing in the future The time has come for retailers across the UK, both small and large, to tackle the ine' ciencies that lie within their own stores and embrace investment in sustainable measures, which will alleviate concerns around energy costs and bear fruitful returns. At a time of unprecedented disruption, energy tech- nologies and e' ciency measures oˆ er retailers not only a genuine opportunity to help protect their margins, but also help in meeting carbon reduction targets and in improving the air we breathe. Iain Walker, director of energy sales, Eon UK have asked staˆ to be more energy e' cient. But while these small and important steps are being taken, retail- ers need to be much bolder and recognise that improv- ing energy e' ciency is an investment in the future of our businesses and our planet – not just another cost. Cut consumption and boost your bottom line Retailers have several measures available to improve the sustainability of their operations, including on-site energy generation through roo– op solar or heat pumps, purchasing electricity from 100 per cent renewable sources, or installing a build- ing energy management system (BEMS).

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