1. Driving Energy Efficiency inCar DealershipsInternationally approved standardsPrepared by Colin Phipps, Auditel

2. 1ContentIssue 1.0 1. Introduction 2. Auditels Role 3. Execute, Execute, Execute 4. Auditel Energy Management Review 5. Reasons Implementations Fail 6. Areas of Opportunity in Energy Management 7. Available Technologies in Renewable Energy 8. Project Funding 9. ISO 50001 Energy Management Systems 10. Why Auditel? 11. Our Fees 12. Testimonials 13. Next steps 14. Appendix 1 Energy Management Overview 15. Appendix 2 Typical Project Flow Diagram Auditel 2012. All rights reserved. No part of this report can be reproduced or transmitted in any form or by any means whatsoever, without the prior writtenpermission of Auditel. Once the project has been implemented, permission will be granted as part of this process. 3. 21. IntroductionEffective Energy Efficiency and Management are a complex and confusing area in which most car dealerships.need specialist advice and a managed service from assessment to implementation and measurement in order tominimise the risks and maximise the benefits.And the best way to achieve it is with Auditel and ISO 50001 Energy Management Systems.The international standard outlines energy management practices that are considered to be the best, globally.Energy Management experts from more than 60 countries developed the standard and now we can help you tapinto that expertise, every day, to help you save energy, cut costs and environmental requirements.Are you ready for energy management?Get more from less with Auditel and ISO 50001. The energy management standard will give you the tools toimprove energy efficiency and lower your energy bills. In fact, Auditel and ISO 50001 could prove fundamental tothe future of your business.Why you should embrace energy efficiency? Helps you win new clients. Helps you increase the number of products and services per client. Helps retain existing clients. Helps maximise productivity, profitability and ultimately shareholder value. Slashes your energy consumption and overhead costs in half.In summary - Energy Efficiency Management enhances your reputation and provides competitive advantage.Productive, efficient organisations attract potential investors and provide an opportunity for good PR by showingall stakeholders that clients are not paying for wasteful processes and procedures.Energy Management is the sum of the measures planned and carried out to achieve the objective of using theminimum possible energy while comfort and production levels are maintained.Energy Efficiency aims to Gain Maximum results or effects from each unit of energy used and is about obtainingthe same outcomes through using less energy.Energy Management is the Result of Energy Efficiency measures.According to the Carbon Trust (CTG054): Successful Energy Management does not just happen it needscommitment, planning, implementation and sustained effort. Auditel 2012. All rights reserved. No part of this report can be reproduced or transmitted in any form or by any means whatsoever, without the prior writtenpermission of Auditel. Once the project has been implemented, permission will be granted as part of this process. 4. 3As well as using energy more efficiently, reducing usage where possible, the amount of energy purchased can bereduced through generation of renewable Energy. The benefits of generating renewable energy to an organisationare: Lower energy bills. Increased security of energy supply as reliance on fossil fuels is reduced. Reduced exposure to price rises in fossil fuels. Increases value of the business. Improved green credentials. Income is generated from Government incentive schemes. Introduces the possibility of selling electricity back to the national Grid.This discussion document is intended as an initial paper to enable an agreed plan to be put in place. Auditelsstaged approach ensures that a viable ROI is established prior to any financial commitment being made. Wherecapital investment is required, funding can be made available and projects can be self-funded. However, someorganisations may prefer to use their own capital reserves. Appendix 1 gives a diagrammatic overview of the Auditel approach to Energy Management. Appendix 2 summarises the Auditel approach to the project process.2. Auditels RoleThere are hundreds of suppliers of renewable energy and energy efficient technologies offering to save customersmoney but of course their key driver is to sell their products and to make a profit. Auditels role as an independentand trusted advisor enables informed business decisions to be made on how best to embrace technology to bestadvantage, maximising Return on Investment (ROI).Where necessary, Auditel can provide access to a network of approved installers that have been vetted andaccredited. For certain types of projects, specialist strategic partners can provide additional resources. By projectmanaging and with access to the appropriate technical and human resources, Auditel can ensure that projects aresuccessfully implemented, thus realising the projected cost savings.Whilst this discussion document focuses on energy management, it is recommended that Auditel first review or isengaged to undertake the energy procurement. This is because to properly review energy management, you firstneed to identify current energy costs and consumption. Any gain from optimising energy procurement may thenbe invested in energy management, efficiency and/or renewable energy projects. Auditel 2012. All rights reserved. No part of this report can be reproduced or transmitted in any form or by any means whatsoever, without the prior writtenpermission of Auditel. Once the project has been implemented, permission will be granted as part of this process. 5. 43. Execute, Execute, ExecutePerhaps the greatest challenge is to execute the strategy, rather than develop it. As the company who pioneeredenergy cost management here in the UK, we built our execution around 3-key areas. 1. Information in the hands of subject matter experts it is the fuel for reducing energy consumption. So wewill collect all the HH data from suppliers, followed up by an energy audit to complete our assessment 2. Intelligence the best process and technology will accomplish little without trained professional people tointerpret the findings and source the right solutions from the supply chain. 3. Execution once the right solutions have been identified, implementation and project management iswhat delivers lower energy bills.4. Auditel Energy Efficiency Management ReviewFirst stage Identifying the OpportunityThe first stage of the Energy Management Review will identify: How much is energy is being used and how? How is energy usage measured and monitored? What opportunities are there to reduce energy usage? What opportunities are there for generating Renewable Energy? How can the above be achieved and is there a business case worth further investigation?The aim of this report is to demonstrate the scale of the opportunity. Once opportunity has been identified, weguarantee minimum results and although there is no obligation, we hope you will move on to the Second stage.Second stage Report and Action PlanThe second stage of the review involves a more detailed site investigation and will result in a project specificationreport. The report will: Give a detailed breakdown of how energy is currently used, benchmarking current usage. Make recommendations in relation to metering, sub metering monitoring and targeting as if you can manage it if you cant manage it Current energy costs will be benchmarked. Analyse and identify area by area, how energy can be reduced and the technologies employed to achieve this. Assess how renewable energy technologies might be employed to generate energy and attract government funding. Include supplier quotations to enable implementation to go ahead. Include details on supplier vetting. Auditel 2012. All rights reserved. No part of this report can be reproduced or transmitted in any form or by any means whatsoever, without the prior writtenpermission of Auditel. Once the project has been implemented, permission will be granted as part of this process. 6. 5 Identify and detail potential cost savings and ROI for any proposed projects. Provide detailed action plan to include project scope, outline performance specifications, timescales and funding options.There will be an option to either purchase the report or to pay Auditel a retainer fee to manage the fullimplementation of the project. If opting for the retainer fee, the number of months will be identified in the firststage of the report.Third stage On-going Energy Efficiency Management, Review and Continuous ImprovementWhere Auditel have already been engaged to manage energy procurement, they will already have access to billingdata, copy bills, pricing and contract end dates. If not, we require this information.This, coupled with detailed knowledge of the energy market, can be particularly important when assessing ROI ofenergy management projects as current contract prices may have been fixed for 1 or 2 years due to rise (orsometimes falls), when they come up for renewal. With access to the billing data, the effects of energymanagement can be measured. Savings achieved will most likely include degree day analysis. This accounts forthe effect in variation of outside ambient temperatures on energy used.Monthly reports could include cost savings achieved from better procurement, reduction in consumption andmeasuring the reduction in carbon footprint.5. Reasons Implementations FailWe frequently come across clients who, on having undertaken an energy review, have not implemented therecommendations of the report. There can be a number of reasons for this: The implementation has insufficient detail for the implementation to go ahead. Quotations have not been obtained or suitable suppliers identified and vetted. Insufficient management time or internal resource available to deliver projects. Insufficient in-house technical knowledge and expertise required to implement. Financial approval delayed and self-funding of projects not identified.It is for these reasons that Auditel like to offer a fully managed service. Auditel 2012. All rights reserved. No part of this report can be reproduced or transmitted in any form or by any means whatsoever, without the prior writtenpermission of Auditel. Once the project has been implemented, permission will be granted as part of this process. 7. 66. Areas of Opportunity in Energy ManagementSome areas of Opportunity typically identified in the first stage review may include: Developing an ISO 50001 Energy Management Policy and Strategy. Metering, Monitoring and Targeting. Improvement of lighting efficiency (and this may include LED Re-Lamping). Voltage Optimisation. Boiler Optimisation Insulation Stratification I.T. Server and monitor optimisation Controls (heating, lighting)7. Available Technologies in Renewable Energy Photo Voltaic (Solar PV), supported by the government Feed In Tariff (FiT). Solar Thermal, ideally suited where there is a high demand for hot water and attracts the support of the governments Renewable Heat Incentive (RHI). Biomass boilers; a cost effective heating alternative, especially cost effective where off mains gas (LPG) is being used and attracts RHI. Ground Source and Air Source Heat Pumps; an alternative to biomass and more appropriate where access can be an issue. ASHPs do not yet benefit from the RHI. Wind turbines; very good at generating high levels of electricity but not always attractive or viable in built up environments; benefits from RHI. Combined Heat and Power (CHP) or Micro CHP for smaller commercial or domestic buildings. Generally the heating element is driven from mains gas with electricity being generated via a turbine as part of the process. This technology benefits from the feed in tariff (FiT). Biomass CHP systems are also emerging as an alternative renewable energy source under the right circumstances.8. Project FundingProjects can be self-funded. Loans or Lease arrangements via the Carbon Trust scheme (Siemens) can be arrangedor advised on. Where these options are either not viable or not desirable, Auditel can introduce investors who willfund the project free of charge with investors retaining the government funding (FiT, RHI, etc.). Where, as is thecase with FiT scheme, subsidies have been reduced, it may be necessary to charge for electricity used but at amuch-reduced rate. Auditel 2012. All rights reserved. No part of this report can be reproduced or transmitted in any form or by any means whatsoever, without the prior writtenpermission of Auditel. Once the project has been implemented, permission will be granted as part of this process. 8. 7Auditel are also able to facilitate a complete Capital Allowances Audit, which would include the enhancedelements, (pay back in year of spend) and could go on to include a claim against integral fixtures and may result ina rebate claimable over 3 - 5 years.We can also facilitate a comprehensive technically led assessment as opposed to a financially led assessment ofyour R&D tax credit allowance, over and above that you may have already claimed. The benefit of this is primarilylarger claim sizes (a large part of our work is uplifting previous financially led claims, with an average of a 4x upliftand a record of 10x).9. ISO 50001 Energy Management SystemsISO50001 is the new energy management systems standard aimed at long term sustainable energy improvement.This targets management commitment to address the above issues with technology and personnel. Its aim is todirect energy efficiency and management into mainstream management practice.Professor Martin FryRoyal Academy of Engineering, Visiting Professor at City University London, President of Energy Services andTechnology Association. BSi Lead for Energy Management Systems Standards, (pgxviii Energy Management inBusiness, Kit Oung,)In this instance we recommend that energy reduction tasks should not be carried out in isolation. Although there isoften immediate impact it can be seen as a fad and then its back to business as usual or often not my job or itsthe responsibility of the Facilities Management Team. We recommend Top Management define, establish,maintain an energy policy and provide resources to achieve it. This consists of: Carry out current Energy Review/Audit Identify legal & Other obligations Calculate a Consumption Baseline and compare against industry Best Practice Monitor and measure characteristics that determine energy performance and the action plans. Identify business specific Energy Performance Indicators (EnPIs) Allocate and Manage Resources Organisational roles and responsibilities Create Company, Group, Department & Individuals Objectives Identify Targets Action Plan Plan and take action to continually improve energy performance to achieve its energy policyThe benefits of this approach will not only save money but provide confidence in the energy managementprocesses and credibility of significant energy use management. Auditel 2012. All rights reserved. No part of this report can be reproduced or transmitted in any form or by any means whatsoever, without the prior writtenpermission of Auditel. Once the project has been implemented, permission will be granted as part of this process. 9. 810. Why Auditel?Established in 1994, Auditel are Energy Cost Management Specialists and founding members of the UtilitiesIntermediaries Association in 2006. Our energy management advice and measures have saved thousands of UKorganisations across private, public and not-for-profit organisations millions of pounds.We have really a well-established best-in-class trusted supply chain of energy efficiency and renewable energyproducts and services. Our experience in delivering complex projects and programmes across public sector, powergeneration, manufacturing, retail, engineering, telecoms and construction should install the required confidence. Experience over 4m saved in 14 years for Pizza Express. Independence objective and independent assessment of the supply chain. Proprietary software tools easy data collection, requiring minimum client staff time. Ownership Auditel take responsibility for project management and delivery. Expertise suppliers have been tried and tested through many live projects. Trusted we have more than 3,500 clients including Sportingbet.com, Calvin Klein Jeans and NHS Trusts. Environmental energy reductions are verified by third party. Financial benefits we take responsibility for funding applications and return on investment (ROI). Future proof blueprint for opening new energy efficient facilities.We provide a no quibble-money-back guarantee with all our consultancy services.11. Our feesOur flexible fee structure includes day rates, management and contingency fees which vary depending upon theproject. For the proposal outlined above, we recommend the following 3-stageapproach. 1. First Stage of auditing is to identify cost savings and energy efficiency opportunities. This review is FREE ofCharge and without obligation with our fees confirmed for undertaking the second and third stages. 2. Second stage is an in-depth audit of your requirements to provide a detailed recommendations reportalong with option to purchase report or to agree implementation and project management fee. 3. Third stage involves implementation and on-going energy management. Auditel 2012. All rights reserved. No part of this report can be reproduced or transmitted in any form or by any means whatsoever, without the prior writtenpermission of Auditel. Once the project has been implemented, permission will be granted as part of this process. 10. 912. TestimonialsThis is one consultancy that really does deliver and I would have no hesitation in recommending Auditel to anybusiness. In fact, any business not using the Auditel service may be placing itself at a disadvantage John Metcalf, Pizza ExpressThey have the time, experience and knowledge of suppliers to get the best deals for us. Its a win win situation;we can focus on running our business and dealing with accounts, but we dont have the time to always keeplooking at suppliers in such great detail. Auditel really does bring value to the business.Pierre David, UK Operations Director, Calvin Klein JeansMore testimonials are available on our website so please click on this link http://auditel.co.uk/publish/testimonials/13. Next StepsHow much are you being fined for inertia?Action is the foundational key to all success. Call 07951 958 605 or email colin@phipps.co today to book FREE ofCharge without obligation Stage 1 Energy Efficiency Review. Do review our staged approach shown in Appendix2. Auditel 2012. All rights reserved. No part of this report can be reproduced or transmitted in any form or by any means whatsoever, without the prior writtenpermission of Auditel. Once the project has been implemented, permission will be granted as part of this process. 11. 1014. Appendix 1 Energy Management OverviewNew Su p p l i es, Met er Up g r ad es/ Do wng r ad es an d Pr o l e Ch an ges ENERGY PROCUREM ENTRevi ew t ar i s/ co nt r act s an d Id en t i f y Over ch ar gIssu e Con tr act Ter m inat i on s es Issu e an d Man ag e Ten d ersAvoid Tak e o r Pay Ch ar g es Ong oi ng Bill Ver i cat i o nEn su r e Su p p li es Tr an sf er Resol ve Su p p l ier Di sp u tes(m an ag i n g su p p l ier ob j ect i on s)Revi ew avai l ab l e cap acit y (el ectr i city) Power Fact or Cor r ect i o nIdent if y Usage and Anom aliesENERGY M A NAGEM ENT En er g y Po l i cy Met er i n g , Mon i t o r i ng an d Tar g et i n g Ind ep en d en t Revi ew(s)Bene ts of Lig h ti n g Re- l am p in gusing Auditel Pr o j ect Man ag em en t Tech n icalPIR an d Zon e Co ntr ol s Resou r cesSup p l i er s Vol t ag e Op ti m i sat i o n Str ateg ic Par tn er s Access t o Fu n d i n gBoil er Op ti m i sat i o n Ong oi ng Sup p or tStr at i cati o nENERGY REVIEWFUND INGIn vest or sHeat i n g Co ntr ol s Zon in gTher m o stats Loan s Si em ensTim er sAlt er n atives LeaseSUBSID I ES Feed In Tar i (FIT)Ren ewab le Heat In cen ti ve (RHI)RENEWABLE ENERGYSo l ar PVCar b o n Em i ssi on s Red u cti o n Tar g et (CERT)So l ar Ther m al Com m un i t y En er g y Savin g s Pr og r am m e (CESP)Biom assGr ou nd So ur ce an d Ai r Sou r ce Heat Pu mpsWin d Tu r b in esCom b i n ed Heat an d Power (CHP) and Mi cr o CHPBio m ass CHP Auditel 2012. All rights reserved. No part of this report can be reproduced or transmitted in any form or by any means whatsoever, without the prior written 12. permission of Auditel. Once the project has been implemented, permission will be granted as part of this process. 13. 1115. Appendix 2 Typical Project FlowchartIdentifying The FIRST STAGE REVIEWOpportunity Review Opportunities and discuss feeoptions. Agreement Mandate given to progress to SecondStage Report and SECOND STAGE REVIEW Action Plan Presentation of detailed reportRefine Scope and Option to purchase report or retainRolesAuditel to undertake implementation Supplier Selection Implementation Funding Arrangements Project Management THIRD STAGE REVIEWOngoing Management and If Auditel are engaged to procure andenergy, reporting on energy costs Review usage may already be included Auditel 2012. All rights reserved. No part of this report can be reproduced or transmitted in any form or by any means whatsoever, without the prior writtenpermission of Auditel. Once the project has been implemented, permission will be granted as part of this process.