Capital expenditure controls are bar to efficiency
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Siemens Automation and Drives product story
Edited by the Engineeringtalk editorial team
Jan 25, 2007
A combination of high energy prices, new regulations, capex constraints and concerns about security of supply are proving a massive burden for many companies and could leave many in crisis.
British industry is "struggling to cope" with an increasingly complex UK energy market, according to one of the UK's leading energy consultants.
At a recent briefing, Steve Barker, Energy and Power Quality Manager at Siemens Automation and Drives, told an invited audience that a combination of high energy prices, new regulations, capex constraints and concerns about security of supply are proving a massive burden for many companies and could leave many in crisis.
Barker points to a lack of technical management resource on the part of many companies as a barrier to implementing comprehensive energy management solutions, even when key individuals at a senior level have bought into the technical and commercial arguments.
"Too many senior managers are so totally overstretched by day to day activity that they cannot do much beyond keeping a plant or production facility running", says Barker.
"Many know what they need to do in terms of implementing comprehensive energy management solutions, but simply don't have the resource to do it".
Barker says a combination of factors is making the UK's energy market bewilderingly complex for industry.
"Everyday energy prices are only one issue".
"New regulations, hidden power quality issues, the threat of winter energy 'triads', power factor charging and other complex tariff charges are all issues which industry is struggling to identify and cope with".
"It is no good consultants complaining that their off-the-shelf 'we can save you money' solutions are being ignored".
"The issue at hand is much more complex than just price".
Barker also believes that capital expenditure controls are proving a barrier to implementation.
"It is unfortunately the case that the potential benefit of installing more energy efficient systems may be inadequate to overcome the capital budget versus capital revenue barrier".
"Those advising industry need to be much more flexible in their approach, particularly in regard financing new equipment".
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