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9 Spring / Summer 2019 Aspects of Land
approach to energy use. The categories,
from highest priority to lowest are:
energy reduction – switching things
off and making sure you’re not wasting
energy anywhere; energy-efficient
systems – making sure your
appliances and machinery
are as efficient as possible;
renewable energy – looking at
producing your own sustainable
energy; low-carbon energy
– switching to a green tariff
from your supplier; and finally,
conventional energy – used
when nothing else can
be done.
Underpinning your approach
should be an in-depth knowledge
of how you use energy, where you are
sourcing it and how much you use. Only
then can you decide on the right package
of solutions to ensure the right balance of
efficiency and cost.
A determination to minimise energy use
is particularly important if you are letting
(or plan to let) property. That’s because
the Minimum Energy Efficiency Standards
in England and Wales, and the Scottish
Energy Efficiency Programme in Scotland,
set minimum levels of efficiency for any
residential or commercial buildings that
are let. Any house let from April 2020
must have an EPC rating of E or above
Energy issues are rarely
out of the news these
days, with supply and
price vying for position
at the top of the agenda.
Of course, the two are
inextricably linked and
thinking about both should be priorities
for all owners of rural property and
businesses.
If you rely on a supplier to provide
your energy, it is vital to have a thorough
understanding of the market so you can
be certain that you have the best deal
to suit your circumstances. It is also
important to explore other sources of
energy to make sure you are maximising
efficiency and minimising expenditure.
A laissez-faire attitude could end up
being very expensive.
A look at recent energy prices
shows just why a proactive approach
is so important. Between January
and December last year, the price for
electricity ranged from £42 per MWh
to nearly £66 per MWh, while gas
fluctuated between 42p per therm to
68p per therm.
Clearly, if you are buying in energy
you are at the mercy of these changing
markets for your bills each quarter, while
if you produce it yourself you know your
costs. Equally, if your bills are rising and
it’s beyond your control, you want to
make sure your energy use is as efficient
as it can be.
A good, but often overlooked strategy,
for assessing all aspects of energy in
your business is the “energy hierarchy”.
This prioritises how you look at energy
to achieve an overall more sustainable
ACCESS FOR ALL?
More than a third of England’s population
don’t have easy access to National Parks
and Areas of Outstanding Natural Beauty
(AONB), a new report by the Campaign to
Protect Rural England (CPRE) has found.
The report was produced for an independent
review into England’s National Parks and
AONBs. CPRE hopes the review will consider
how to improve access so that everyone
can enjoy the wellbeing benefits that these
beautiful areas can bring.
(for more information see page 8), or
the owner must be able to demonstrate
that they have taken reasonable steps to
achieve it.
It is also worth considering whether
you can supply energy – whether
electricity or heat – for your own use from
a renewable source.
Historically, subsidies made it attractive
to install a renewable energy project
purely as a means of securing an income
stream. However, in an unsubsidised
environment it is critical to integrate
energy generation for use in a business,
rather than viewing generation alone
as a source of government-subsidised
income. Any energy solution needs to
be tailored to the business’s specific
attributes and demands.
Generating your own energy from
renewable sources makes particular
financial sense when you consider that
wholesale costs constitute less than half
the retail price of
energy bought in
from a supplier:
typically 45% for
electricity and
41% for gas. The
rest of the bill
is made up of
third party costs,
which include
environmental and
social obligation
costs, operating
and network costs and supplier margins.
The specifics of any business’s
energy strategy will, of course, vary
depending on the available resources,
its situation and the nature of the
property or business. But even the
exercise of applying the energy hierarchy
will clarify and strengthen your plans,
and help you on your way to ensuring a
viable energy strategy.
n If you would like to discuss ways to improve
the energy efficiency of your business, contact
Nick Green, Perth, 020 3810 9838,
60,000There are currently an estimated 60,000 thatched
properties in Britain. Around a tenth of these are in Dorset,
which has around four thatched roofs per square mile. Not
all are on old houses as thatch is used to reflect the local
architectural style in many new developments too.
SOURCE: SAVILLS RESEARCH
DON’T WASTE
YOUR ENERGY
“Underpinning your
approach should
be an in-depth
knowledge of how
you use energy,
where you are
sourcing it and
how much you use”
NICK GREEN
HEAD OF ENERGY
AND INFRASTRUCTURE
Viewpoint
FORESTRY ENGLAND, SHUTTERSTOCK