Energy can be a huge source of savings, or a financial burden depending on how a business is run. There are many variables that determine how energy efficient an organization can be. Is there an energy policy in place? Is energy use and planning discussed in meetings? What percentage of the operating budget is energy? These are all questions executives can use to self-evaluate their organization.
Over the years, we have identified five levels of energy cost management that pinpoint the current state of efficiency within an organization. They are:
Level 1 -- Awareness
People are aware that energy conservation is an issue, yet there is no energy policy and wasteful practices are the norm.
Level 2 -- Sporadic
A select few try to conserve energy, but only if it is convenient to do so. These activities are not repeated in a structured way.
Level 3 -- Defined
Defined processes and procedures to reduce energy costs are in place, but they are not followed consistently.
Level 4 -- Centrally managed
There is at least one manager responsible for the reduction of energy costs. Related processes and procedures, as well as energy consumption, are centrally managed and controlled.
Level 5 -- Sustained
A strategic approach to cost management,one that forecasts energy consumption and costs, is firmly in place. All operations and business activities are focused on the reduction of energy costs.
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