Monday, December 04, 2006

The Seven Deadly Sins of Energy Cost Control

7. Believing that the financial impacts of energy decisions are reflected only in utility bills, ignoring the wider impact on raw materials, labor, time, and other inputs.

6. Relying on technology and equipment alone to improve energy performance, without recognizing the role of behavioral and procedural change.

5. Believing that energy prices are the sole determinant of energy expenses, while confusing “efficiency” with “environmentalism.”

4. Placing energy bills in the hands of people who never see how energy is used, while equipment operators never see the bills for the energy they use.

3. Justifying isolated energy improvement projects one at a time, rather than following a day-to-day, comprehensive business plan.

2. Failure to merge energy performance criteria with standard operating or asset management procedures.

1. Fear of admitting that energy waste exists, yet holding individuals responsible for waste that is really attributable to management system failures (see all points above).



At 3:58 PM, Blogger Ramsey Zimmerman, Shepherd Advisors said...

Chris - Great points. I see a common thread running through your list ... to make energy savings efforts effective, everyone at the company (from the executive offices to the work floor) needs to understand and appreciate that using less energy means making more money. I hope that message rings louder and clearer now that competition everywhere is fierce, and profits are eroding.

Ramsey Zimmerman


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