Will UK Retailers Skim the Cream with ESOS?

The British Retail Consortium (BRC) was quick out on the starting blocks with an ambitious plan to cut energy costs by 25% in 5 years. Their ‘25-in-5’ initiative is chasing a target of £4.4 billion savings during the duration. Part of this program involves ’cutting a path through a complex and inaccessible policy landscape’. BRC believes this drawback is making its members think twice about making energy efficiency investments.

The UK’s sprawling network of grocers, department stores and malls is the nation’s second most hungry energy customer, having spent £3.3 billion on it in 2013 when it accounted for almost 20% of carbon released. If you think that sounds bad, it purchased double that amount in 2005. However the consortium believes there is still more to come.

It bases this assumption on the push effect of UK energy rates increasing by a quarter during the duration of the project. ‘So it makes sense to be investing in energy efficiency rather than paying bills,’ Andrew Bolitho (property, energy, and transport policy adviser) told Business Green. The numbers mentioned exclude third party transport and distribution networks not under the British Retail Consortium umbrella.

The ‘complex and inaccessible policy landscape’ is the reflection of UK legislators not tidying up as they go along. BRC cites a ‘vast number of policies … spreading confusion, undermining investment and making it harder to raise capital’. The prime culprits are Britain’s CRC Energy Efficient Scheme (previously Carbon Reduction Commitment) which publishes league tables and ESOS. Andrew Bolitho believes this duality is driving confused investors away.

The British Retail Consortium is at pains to point out that this is not about watering things down, but making it simpler for participating companies to report on energy matters at a single point. It will soon go live with its own information hub providing information for retailers wishing to measure consumption at critical points, assemble the bigger picture and implement best practice.

Ecovaro agrees with Andrew Bolitho that lowering energy demand and cutting carbon is not just about technology. We can do much in terms of changing attitudes and providing refresher training and this does not have to cost that much. Studies have shown repeatedly that there is huge benefit in inviting employees to cross over to our side. In fact, they may already be on board to an extent that may surprise.