Head of npower Business Solutions
"npower Business Solutions welcomes the energy efficiency taxation review. The current regime of taxation and reporting requirements have become unwieldy and in some aspects counterproductive.
However, it’s important to note that companies don’t dislike reporting; they resent reporting for reporting’s sake. In fact most businesses welcome the structure and impetus mandatory reporting gives them, so they can better manage their energy use. This standardisation often informs investors and other stakeholders who need to make important decisions about the business.
This is a unique opportunity to right some wrongs. As the government finesses its plans and considers the long-term direction of a new streamlined taxation mechanism, we are supporting the requirement to make energy efficiency the starting point and ambition for regulatory reporting. (At present energy reduction is still not a direct outcome of any requirement.)
To some extent, promoting the Climate Change Levy does this but we wouldn’t want to see companies unduly penalised for not receiving the help they need to better manage their energy use. Transparent communication is vital here. Government changes to the CCL’s main rates will negatively impact business if firms aren’t fully aware that they need to prioritise energy efficiency.
This realisation may take some getting used to. For many organisations, energy costs are not their most significant expenditure and as a result, these costs sometimes get side-lined. This is problematic as board level support is vital to the successful uptake of carbon reduction initiatives. In practice, the Board should be actively embedding realistic targets into their emissions reporting and leading the charge on energy efficiency.
So we know clear energy reduction targets are important and reporting serves a positive purpose when used for good. Over the next few years we’ll hopefully see the government move to a more uncluttered regulatory landscape, fit for a low carbon economy. However, the journey will be far less painful if we improve UK plc on energy efficiency in advance."