Around 5,000 UK businesses facing £1.4 BILLION bill following onset of government’s Carbon Reduction Commitment (CRC) legislation, warns Sabien Technology.

Industry comment

Published: 22 March

Author: Alan O'Brien

Type: Industry comment

Year: 2010

  • Imminent legislation will penalise firms which do not reduce  CO2 emissions
  • UK firms face cash flow impacts of £billions
  • April 2010 sees new laws take effect – 5,000 UK firms in firing line

AROUND 5,000 UK businesses face financial and reputational risks if they do not take action to comply with the Government’s CRC Energy Efficiency Scheme* when it becomes law in April 2010, warns green technology provider Sabien Technology.

“It is estimated that the 5,000 eligible businesses, including some of the UK’s leading brands, are looking at paying out £1.4bn1 in 2011, during the first phase of the scheme,” said Sabien’s CEO Alan O’Brien.

“However, the reputational risks these organisations face from the published league tables of best and worst performers could be the key driver for them to reduce their CO2 emissions,” he added.

“Coupled with volatile energy prices and the continuing effects of the recession, firms face a tough time unless they harness proven and cost effective strategies to reduce energy costs, CO2 emissions and brand erosion,” added O’ Brien.

“Heating and hot water generation accounts for 64% of the energy consumed in the UK’s private and public service sectors. The majority of this is from commercial boiler systems which are major contributors to the high levels of CO2 emissions that the CRC scheme is aiming to reduce,” he continued.

“However, the technology exists right now, today, to significantly reduce energy consumption which in turn will deliver real cost savings and reduction in CO2 emissions and help avoid the financial and PR pressures the new legislation creates.”

Sabien’s unique M2G technology can work out when and how a boiler is working inefficiently and makes adjustments that can cut energy consumption and CO2 emissions by up to 25%. It can be retro-fitted to new and existing boilers and typically brings in actual cost savings in anything from a few weeks to within two years.

The value of M2G has already been acknowledged and recognised by many leading blue chip companies including British Gas, Balfour Beatty, O2, Serco, Lloyds Banking Group, The Royal Bank of Scotland Group, Aviva and Virgin Media - which have all either rolled out or have commenced installations across their estate portfolios.

Sabien solutions at a glance:

  • Sabien’s patented M2G boiler load optimisation control delivers proven reductions in energy costs and CO2 emissions
  • M2G fully integrates and complements existing Building Management Systems (BMS) and existing controls
  • Companies using M2G include BT, Royal Bank of Scotland, Lloyds Banking Group, O2, Aviva, Vodafone and the Environment Agency.
  • Alliance agreements signed with major UK service providers to distribute M2G include British Gas, Balfour Beatty, Serco and Jones Lang LaSalle
  • Approved supplier to London Green500 initiative

“A major concern for any business, when faced with having to undertake fundamental alterations to infrastructure that initiatives such as the CRC demands, is cost,” added O’Brien.

“Many of the UK’s organisations have made commitments to improve their environmental impact, but will only use commercially viable means to achieve this.”

“Our technology and pricing model has been developed specifically with that in mind so that our customers can make their contribution to improving the environment – and achieve this in a cost effective way.”

– Ends –


* The Carbon Reduction Commitment Energy Efficiency Scheme is the UK’s mandatory  climate change and energy saving scheme

1 Estimate by research group Datamonitor, January 2010