The Department of Energy and Climate Change has said it is exploring how to best support business energy efficiency efforts as it aims to tap into the “significant potential” in the business sector.
Late last week the department published its five-year single departmental plan for the period 2015 to 2020, detailing the core programmes it will manage as part of the budget agreement it struck under last November’s spending review.
The plan states that there “remains significant untapped potential for energy saving in the business sector” despite a 24% reduction in the UK economy’s energy intensity since 2004.
The problems in realising this potential, DECC has argued, stem from a “complex” energy tax and policy framework that also fails to properly incentivise reduced energy consumption from small and medium-sized enterprises (SMEs).
Last September the government proposed a wide-ranging overhaul of its carbon reporting and taxation systems and is expected to issue its verdict at next month’s budget, however DECC also confirmed it has been “actively considering” the support on offer to SMEs.
“In our work with local government we are exploring how further support can be provided to SMEs on energy efficiency,” DECC’s plan states.
Any additional support will build on the current policy framework which incorporates the Energy Savings Opportunity Scheme and the future carbon reduction commitment tax framework, and also add onto the £295 million public sector funding for efficiency works outlined during chancellor George Osborne’s autumn statement.
