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npower Business warns companies to reduce carbon emissions or face the consequences


npower Business is urging businesses to assess their energy management strategy in the face of growing regulatory and societal pressure or face being financially penalised.

Among the growing pressures is the new Carbon Reduction Commitment (CRC), a mandatory cap and trade scheme, which will apply to large non-energy intensive public and private sector organisations whose total metered electricity consumption is greater than 6,000MWh per year through all half-hourly meters (this volume of electricity equates to an approximate annual spend of £500,000).

Part of the participating organisations’ responsibility will be to self-certify their own energy use and submit company details using their own meter readings or by reference to annual energy bills, via an online registry. Although the full CRC scheme doesn’t start until 2010, this will include records of 2008’s energy consumption.

Key to the CRC scheme is a company’s commitment to reducing its energy consumption. Once companies have submitted 2008 energy bills, which will be used to produce an energy consumption baseline, energy management techniques will then be needed to generate year on year energy reductions.

While legislation is a key driver, Steve Fitzsimons, Business Energy Manager at npower Business, explained that factors beyond regulatory pressure are bringing a new priority to energy management: “Businesses are now also being evaluated on their environmental credentials in the supply chain selection process and will increasingly need to manage their energy consumption proactively if they are to benefit commercially in a business community that is increasingly low carbon focused.”

Recent research from npower business, the npower Business Energy Index, suggests that businesses are increasingly aware of the need for energy management and would welcome advice on reducing CO2 emissions and improving energy efficiency.

A new portfolio of products for business from npower business, m3 (measure, monitor and minimise) has been developed to meet this demand, providing businesses with a comprehensive toolkit to better understand and manage their energy use, enabling them to embark on a process that will deliver a long-term and sustainable reduction in energy consumption.

“Potentially one of the most important aspects of m3 enlightened energy management is the understanding that all companies are facing the same pressures to reduce carbon emissions but each and every business will be at a different stage of responding to this need. Where npower business and the m3 concept can help is by recognizing these various stages, enabling customers to pick and choose the elements and mix that is relevant to their business, in order to help them achieve CRC success,” explained Fitzsimons.

“The CRC is designed to reduce carbon emissions through energy efficiency so businesses will be expected to implement energy saving measures to hit their targets. Accurate management of energy consumption, leading to the development of an effective energy management strategy, is the foundation for a more enlightened approach to energy management,” added Fitzsimons.


Notes to Editor:
The report can be downloaded as a pdf from

In-depth telephone interviews were conducted in October and November 2007 with a representative sample of 200 UK businesses, comprising 100 small-to-medium-sized enterprises (SMEs) with significant energy usage and 100 major energy users (MEUs).

About npower
npower business is one of the top energy suppliers to the UK business market, serving over 250,000 small to medium sized enterprise sites and around 15,000 industrial and commercial customers, with over 100,000 sites.

npower business helps companies monitor and manage energy consumption to bring commercial and environmental benefits.

For media information, please call:
Greg Phillimore
Senior Account Manager
npower business
Public Relations
Highlands Road
West Midlands
B90 4WE
0121 713 3795


 npower Business
 energy management
 reducing CO2 emissions
 energy efficiency
 energy consumption

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