Energy Management in UK Non-Domestic Buildings - a New Perspective to Provoke Reduced Carbon Emissions

Politicians, industry and the public generally accept the need for energy consumption to be cut to deliver climate change mitigation measures essential for us to avoid climate disaster. For non-domestic fuel users current energy policy has attempted to drive this through rational economic responses to energy cost pressures. This reliance on voluntary action has created an “Energy Inconsistency”, that is a marked difference between energy opportunities that have been proven technically viable, financially rational and retrofit feasible and those actually adopted. Other factors must therefore be involved to influence what appear to be simple carbon and cost saving opportunities. This paper presents a new approach to energy efficiency and consumption in non-domestic buildings, viewing attitudes and behaviours of building owners and users as the key driver of energy consumption. A new framework is proposed as a method to examine the impact of building ownership on the users’ and owners’ abilities to improve energy efficiency and consumption and identify opportunities to overcome the barriers inherent in these ownership structures.

Building Owner vs. Energy User: a Split Incentive for Energy Reduction

The UK’s historically low cost of energy has encouraged a culture that considers energy to be in limitless supply and excessive levels of consumption acceptable. Now that supplies are becoming restricted and costs rising, it is becoming recognised this energy culture has created a legacy stock of buildings with poor building fabric, limited energy efficiency equipment and even lower levels of energy awareness. Cost effective technologies are readily available but not adopted by UK SMEs in non-domestic buildings, as rational economic theory would expect. Policy-makers attribute this to inaccessibility of information and investment and design policies accordingly. However, as escalation of demand continues an alternative driver of this paradox must exist. This research hypothesises that this is the ownership structures of non-domestic buildings. Tenure of business premises is found to prevent adoption of energy conservation opportunities; 64% of SME surveyed encountered barriers to energy efficiency related to building ownership. When increased pro rata to reflect the UK SME population, almost 2.5 million businesses appear unable to benefit from energy improvements.