Shell Gas Direct help meet the energy challenge

New energy management technology can play a key role in how Facilities Managers contribute to their business' overall profitability and environmental impact.

Mike Hogg, general manager of Shell Gas Direct explains why operational efficiency is a major concern for building managers as they attempt to maintain profitability and meet the increasing challenges of environmental legislation.

Energy management is a key part of this, as firms look to get a better handle on their energy usage.

The current climate for businesses poses tough challenges, with rising costs, a strong climate change agenda and the effects of the credit crunch all affecting industry.

Recently, Automated Meter Reading technology (AMR) has been brought to the market to simplify and improve this process.

The technology is fitted to an existing gas meter and communicates consumption data back to the energy supplier via SMS technology.

This information is then made available to the customer through a secure website, where they can view graphical and numerical information about their gas usage, make comparisons between different periods and sites as well as download the raw information to be analysed using the customer's own software.

By making accurate, up to date gas consumption data available, AMR tackles one of the major obstacles in tracking energy use - estimated billing.

Instead this is replaced by extremely accurate readings that in turn allow for more precise budgeting and control.

This level of information puts companies in the driving seat when it comes to selecting the most suitable type of gas contract for their business.

In today's gas market, flexible contracts are available that track market prices, offer fixed prices or provide a combination of the two to allow customers to purchase gas in advance.

By understanding the base load and volatility of their gas consumption, customers can then work with their gas supplier to select the best combination.

This minimises the risks of consuming too much or too little gas and the attendant costs and penalties that can arise.

We have seen customers save as much as 20% on their gas costs by using the insights from AMR to procure their gas more efficiently Another benefit is that there is no longer any need to physically collect meter readings.

The often time-consuming process involved in organising access to properties and multiple sites, with all the attendant risks involved, is eliminated at a stroke.

Tracking gas consumption in this way enables facilities managers to monitor energy trends.

The relative success of any efficiency drive can be benchmarked, charted and its ultimate benefit judged with far greater precision.

Similarly, any anomalies become apparent and allow potential problems to be picked up at an earlier stage.

The increasing role climate change plays in the world of business regulation means producers need to bear in mind the environmental impact of their processes.

Next year sees the launch of the UK's CRC Energy Efficiency Scheme, which will see a 'cap and trade' carbon reduction programme introduced for major industry.

AMR is a useful tool in tracking the necessary reduction in energy use by giving customers information about the amount of CO2 they produce through gas use.

This allows for corrective action to be taken sooner rather than later and for continuous improvement of energy efficiency.

As such AMR clearly has the potential to make significant savings.

The current challenges of the energy market mean building owners and managers need to ensure they are getting the most out of their energy suppliers.

By working together with a quality supplier, customers can negotiate from an informed position and be better prepared for the economic, financial and environmental challenges ahead.

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