How can ISO 50001 help prevent the long term rise in energy costs?
Western Europe's prolonged winter has left supplies of natural gas at an all time low it was revealed this morning. In an article, in the Irish Times, journalist Barry O'Halloran also explained that this unseasonal cold snap has seen the cost of natural gas almost double. Ireland and Northern Ireland sources over 90% of its natural gas from the UK, where it was being traded for €1.06 a therm (the unit in which gas is sold), far higher than 64 cent a therm that it normally trades for at this time of the year. Join us as we find out how ISO 50001 can help prevent the long term rise in energy costs.
This kind of price rise has severe consequences for the power generators and industrial businesses who purchase their gas on the short-term markets. Consumers and small businesses are unaffected as of yet but industry sources suggest that due to the mechanisms of commodities trading this short term spike in costs could result in much higher prices in the long term.
To guard against a repeat of this price spike large energy consumers may be forced into purchasing more gas than usual on the long term markets. This is the same market that consumer gas, the kind that makes up the resources for smaller business or home owners, is sourced from.
While the article goes on to explain that it is too early to ascertain what affect that this scenario will have on the price it is something that has driven the price up in the past.
ISO 50001 aims to manage energy use in businesses or large bodies. By highlighting all current sources of energy use and creating an energy baseline businesses start to become more energy aware. As part of the ISO 50001 standard there is a requirement for all staff to understand the energy use in their day to day business. Some businesses have been able to reduce their overall energy consumption by up to 51% just by implementing the ISO 50001 standard. This type of energy saving would result in lower long term energy costs for both large energy consumers and house holds.
This operational control delivered by ISO 50001 is just one of the benefits, not only does it help businesses reduce their energy costs but it can also help the UK and Ireland towards the EU 20-20-20 directive. The EU has pledged that all its member states will deliver a 20% cut in greenhouse gas emissions by 2020, a 20% increase in use of renewable energy by 2020 and a 20% cut in energy consumption through improved energy efficiency by 2020. While this savings are substantial we have seen that the energy savings from ISO 50001 can more than deliver on this promise giving us a greener, healthier planet with lower energy costs for all.