Monday, 12 March 2012

By: Neil Ritchie, Local Business Unit Manager, LV Drives at ABB
Rising costs will not have escaped any of us when looking at our electricity bills lately, yet many of us are still failing to take the actions necessary to reduce our energy costs.

With incredible pressure from virtually every country around the world for limited energy resources, it is surprising that many manufacturers still believe that the best way to save money is to find an energy supplier offering better rates then their competitors. Clearly much more needs to be done to educate industry on the best ways to reduce energy costs.

The problem is that many manufacturers simply don’t know how to reduce their energy costs in a meaningful way and not enough resources have been made available to teach them otherwise. The government and the Carbon Trust are doing a good job in creating awareness, however they are not specific enough about what should be done to have a significant impact on costs.

Currently the government favours legislation like the CRC Energy Efficiency Scheme  for improving industries’ energy performance, but surely instead of penalising organisations according to their CO2 output, it would be better to offer incentives that encourage them to adopt a greener approach.

What the trust and the government should be doing is explaining to industry that they need to focus their efforts on reducing the energy usage of their plants and machinery. Companies such as ABB  are trying to educate industry on the benefits of energy saving equipment, however much more needs to be done if we are to improve energy efficiency across the board.

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