The EMIS Audit

Energy Management Information 

Systems 

Implementation Manual 

Part A – The EMIS Audit

Contents 

1 Introduction ......................................................................................................... 3 

1.1 Intent ........................................................................................................... 3 

1.2 Intended Audience ........................................................................................ 4 

1.3 Manual Structure .......................................................................................... 4 

2 Preliminary Considerations .................................................................................... 6 

2.1 Nomenclature ............................................................................................... 6 

2.2 W hat is an Energy Management Information System? ...................................... 8 

2.3 W hat is the Scope of an EMIS ...................................................................... 11 

2.4 Outcomes and Benefits of EMIS ................................................................... 11 

2.5 Choosing the EMIS Auditor? ........................................................................ 13 

2.6 Helping the EMIS Auditor ............................................................................. 16 

3 Prior to the EMIS Audit ....................................................................................... 18 

3.1 W hy gather information prior to the audit? .................................................... 18 

3.2 W hat sort of information should be requested ................................................ 19 

3.3 Preliminary Analysis .................................................................................... 21 

4 The EMIS Audit .................................................................................................. 26 

4.1 Foreword – Is and Ought… .......................................................................... 27 

4.2 Management Systems and Procedures Assessment ....................................... 28 

4.3 Defining the Purpose of EMIS ...................................................................... 30 

4.4 Defining the Energy Account Centres ........................................................... 31 

4.5 Metering and Data Capture Assessment ........................................................ 33 

4.6 Data Analysis and Reporting Assessment ..................................................... 37 

4.7 During the Audit .......................................................................................... 42 

4.8 Before leaving the site ................................................................................ 43 

5 Developing the Business Case ............................................................................. 45 

5.1 Generating the functional definition of the EMIS ............................................ 46 

5.2 Identifying Recommendations ...................................................................... 49 

5.3 Prioritization ............................................................................................... 50 

5.4 Savings Estimation ..................................................................................... 50 

5.5 Cost Estimation .......................................................................................... 51 

6 The EMIS Audit report ........................................................................................ 52 

7 Supporting Tools ................................................................................................ 54 

7.1 EMIS Audit Tool Spreadsheet ...................................................................... 54 

7.2 The EMIS Business Case Tool ..................................................................... 57 

7.3 Report Template ......................................................................................... 61 

EMIS Ma nu al Page | 1 

Part A

APPENDICES .......................................................................................................... 63 

A1 EMIS Evaluation template ............................................................................ 69 

A2 Data Request template ................................................................................ 74 

A3 Assessment Criteria and Scoring .................................................................. 76 

A4 Data Analysis and Savings Estimation ......................................................... 110 


Part A

1 Introduction 

Efficienc y NB has created the Industrial Program to assist eligible New Brunswick 

Industrial organizations to improve their competitiveness, productivity and environmental 

performance through the implementation of both capital and operating energy efficienc y 

improvements projects. One stream looks at Energy Management Information Systems 

(EMIS). This program stream focuses on the preliminary assessment, business case 

preparation and implementation of projects aimed to develop or improve plant or 

corporate EMIS. 

1.1 Intent 

This manual accompanies the EMIS stream of the Industrial Program . The EMIS 

stream provides support for three main stages leading to implemented EMIS as 

indicated in Figure 1: 

Figure 1. The phases of EMIS implementation and support 

The objectives of this EMIS Manual are: 

� To enable companies to conduct EMIS Audits and prepare EMIS Implementation 

Plans. 

� To provide companies with the tools to prepare a financial business case for 

EMIS Implementation. 

The manual has been prepared in two parts: 

� PART A - will enable companies to successfully complete the EMIS Aud it stage. 

An EMIS Audit should provide sufficient preliminary business case performance 

metrics to enable a company to decide whether or not to proceed to the EMIS 

Implementation Plan phase of the Program. 


Part A

� PART B – takes the results from the Audit phase and then leads the companies 

to successfully complete the EMIS Implementation Plan . A detailed EMIS 

Project Implementation plan provide s a detailed technical & financial business 

case for EMIS Implementation. 

This document comprises PART A of the EMIS Manual. 

1.2 Intended Audience 

The intended audience for this document comprises: 

� Service suppliers to the Efficienc y NB program who will be contracted by 

Efficienc y NB‟s customers to undertake EMIS Audits and Implementation plans. 

To this group this manual is in tended to provide: a structured methodology for 

auditing the sites; tools to support the audit and implementation plan process , 

and; a consistent form of reporting of outputs. 

� Industry Participants of the Efficienc y NB program who are considering EMIS or 

are already implementing EMIS in some way, shape or form. To this group the 

manual is intended to provide information about the program‟s expectations for 

EMIS and the various stages of the process so that they can comply with the 

program‟s requirements for funding. Industrial energy users may also decide to 

go through the audit and implementation plan themselves with or without 

recourse to external support and this manual will guide them through the 

process. 

1.3 Manual Structure 

This manual is structured in t he same way as the audit process itself as shown in 

Figure 2: 

Figure 2. EMIS manual structure 


Part A

Supporting Tools have been created in addition to this manual to support the 

process of undertaking an EMIS Audit. These tools comprise: 

� Assessment templates. A Microsoft Excel spreadsheet containing the 

assessment templates for the EMIS Audit. The templates should be used to 

capture information that can be copied directly into the EMIS Audit report. 

� A business case template. Again using Excel this template is designed to 

capture the initial budget costs and savings from EMIS implementation and to 

present them in a consistent manner. This business case is a key element in 

presenting the benefits of EMIS to the clients. 

� A Report Style Guide. A Microsoft W ord template designed to ensure 

consistent presentation of results , in particular to ensure that all of the 

requirements provided in the Incentive Terms and Conditions Guidance 

document are adhered to. 

Section 7 provides information on use of these tools. 


Part A

2 Preliminary Considerations 

This section is intended for the Industrial Program Participants of Efficienc y New 

Brunswick who may be new to the subject of Energy Management Information Systems 

and who may be asking themselves: 

W hat is an Energy management Information System? 

W hat benefits could it bring to m y organization? 

How should I go about choosing an EMIS Auditor? 

W hat sorts of information will m y EMIS auditor require? 

Specific guidance to EMIS auditors is provided in section s 3 and 4. 

2.1 Nomenclature 

As with any subject, energy management has developed its own language, most of 

which appears within this manual. For the reader new to the subject, the following is 

an initial list of definitions: 

EMIS 

Metering 

Utility Drivers 

An Energy Management Information System (EM IS) is a 

Performance Management System . 

EMIS provides relevant information that makes energ y 

performance visible so that key individuals and 

departments within the business can take effective action 

to create financial value for the organization. 

EMIS typically comprise the “metering”, “data capture”, 

“data analysis” and “reporting” required to provide 

management information on energy performance to the key 

decision makers and the organizational systems and 

procedures such that action is taken on the basis of the 

management information provided. EMIS therefore goes 

beyond the technology necessary to measure and analyze 

energy consumption data and includes the competencies of 

the organization itself. 

This covers the measurement of data required for the 

Energy Management Information System. The data will 

cover: 

Energy Consumption data derived from energy meters 

or “sub-meters” 

“Utility Driver” data which are the factors that influence 

energy consumption, typically production, 

environmental factors and oper ational factors. 

Taken together, the production data, environmental factors 

and operational factors are termed “utility drivers” and 

these are the factors that drive energy consumption in an 

organization. 

Production data. In an industrial context produ ction 

refers to the physical outputs of the process, generall y 

the finished goods. W ithin the context of energ y 

management it is sometimes important also to use data 

from intermediate stages of the production process 

(sometimes termed work in progress) es pecially when 


Part A

Data Capture 

Data Historian 

Data Analysis 

Reporting 

Energy 

management 

systems 

Energy 

Account 

Centres 

Submeters 

processes are complex (i.e. with multiple outputs) or of 

long duration. In commercial and public buildings 

“production” may refer to other data such as 

“occupanc y hours” (the time the building is occupied). 

Environmental factors. These are conditions outside of 

the direct control of the organization which influence 

energy consumption, e.g. ambient temperatures, 

absolute and relative humidities. 

Operational factors. These are the operational 

conditions in the direct control of the organizati on and 

which influence energy consumption, e.g. set point 

temperatures and pressures. 

The hardware, software and/or procedures used to collect 

the metered data. This can range from a person walking 

round the plant noting meter readings on a piece of pa per 

and then copying these readings into a spreadsheet to a 

fully integrated automatic meter reading s ystem with data 

stored centrally in a “data historian”. 

The data historian is where the captured data is stored in a 

structured format to allow subsequ ent analysis. Data 

historians can range from spreadsheets to proprietary 

databases such as InSQL or PI. 

Data analysis is the process by which the energy 

consumption is compared with the utility drivers in order to 

arrive at some conclusion regarding e nergy performance. 

Data analysis can be summarized as the means of 

converting data into management information. 

W hile data analysis supplies the management information, 

reporting is the means by which this information is 

presented in a form that is eas y to understand. Reports 

used may be either tabular or graphical. 

In this context energy management s ystem can refer to a 

formal management system (such as the forthcoming 

European Standard EN 16001) or the collection of business 

systems and processes that comprise operational and 

commercial control over an organizations energy use of 

which EMIS is a component. 

An Energy Account Centre is the organization level at 

which energy performance should be managed and 

therefore reflects both process and orga nizational 

responsibilities. Energy account centres can be process 

lines, unit operations such as furnaces or driers, or 

components such as air compressors or boilers. See 

Section 4.4 for a fuller description 

Sub-meters measure the energy input to an energy account 

centre and may also be used to measure the utility drivers. 

They are termed sub-meters because they measure a part 

of the total utility supply to the site which is captured by 

the fiscal meters 


Part A

Targets 

There are three sorts of “targets” recognized in energy 

management: 

Strategic Targets – These are generally corporate level 

top down targets based on some business driven need 

(e.g. costs will be reduced by 5%), also known as 

“Objectives”; 

“Tactical” targets - Specific energy targets that are 

defined from a bottom -up perspective (e.g. “this 

machine should run at x kW h/linear feet of board”), 

sometimes called Key Performance Indicators (“KPI”). 

“Operational” Targets - that recognize all of the 

influences on energy performance and can be used as 

models for prediction and control based on 

mathematical relationships developed through 

regression analysis, e.g.: 

Electricity (kW h) = 16543 + 2.97 x production (tonnes) 

- 154 * average temperature ( C) 

In the above equation the operational target is 

dependent on both production and average ambient 

temperature and includes a baseload. If the 

production was 230 tonnes and the average 

temperature was 25 C then the target electricity would 

be: 

= 16543 + (2.97 * 230) – (154 * 25) 

= 13376.1 kW h 

If the actual consumption in the period was 

14,000 kW h then investigation should take place to 

understand the root cause of the difference. 

For clarity, throughout this document we shall refer to 

“Objectives”, “KPIs” and “Targets”. 

2.2 What is an Energy Management Information Sys tem? 

In 2004, the Canadian Industry program for Energy Conservation (CIPEC) published 

a handbook on Energy Management Information Systems 1 . This document defined 

EMIS as providing “support to an organization‟s energy management program 

through the following deliverables: 

� Early detection of poor performance; 

� Support for decision making; 

� Intelligent Procurement of utilities; 

� Effective performance reporting; 

� Auditing of historical operations; 

� Identification and justification of energy projects; 

1 Ener gy m anagem ent inform ation s ys tem s : achieving im pro ve d ene rg y ef ficiency: a h an dbo ok for 

m anagers , engi nee rs an d oper ational staff. 

http://oee. nrc a n.gc.ca/Publ ications/industri al/EMIS/E MIS_e ng .pdf 


Part A

� Identification of Best Practice 

� Reducing business risk from volatility in energy costs 

� Providing evidence of success; 

� Support for energy budgeting and management accounting; 

� Provision of energy data to other s ystems.” 

W hat this means in practice is that the EMIS sh ould: 

� Gather information on energy consumption; 

� Gather information on the useful outputs derived from the consumption of 

energy – for example production, heating, lighting, etc; 

� Gather information on any other factors which may influence energy 

consumption, for example environmental factors such as ambient temperature 

and relative humidity, or operational factors such as building occupanc y, 

packaging sizes, etc. 

� Contain analysis routines to allow the comparison between energy consumption 

and the utility drivers. 

� Build and display energy performance reports. W ith effective management 

systems in place these reports can be used : 

o As a stimulus for investigation and identification of the root causes of 

both good and poor performance. 

o To promote operational best practices by eliminating the root causes of 

poor performance and promoting activities that lead to good 

performance; 

o To provide the justification for energy saving projects through making 

visible the costs of current energy performance and providing a base line 

against which savings projects can be compared , and; 

o where projects have been implemented the demonstration of the success 

or otherwise of their implementation; 

Figure 3. Targets in EMIS 

Performance targets are based on 

analysis of performance 

These targets can be used for 

prediction and control 

This predictive ability meets the 

requirement for detection of poor 

performance, auditing or historical 

operations and support for budgeting 

and management accounting 

To deliver these results, the Energy Management Information Systems generally 

comprise the following key elements: 


Part A

� Energy meters and sensors for the key environmental factors which influence 

energy performance but over which the operators have no control, e.g. 

temperature, relative humidity; 

� Production meters and sensors for the operational factors ; 

� Data capture s ystems and data historians to store this data; 

� Data analysis and reporting s ystems. 

Energy Management Information Systems do not exist in isolation but are part of an 

organization‟s energy management s ystem 2 . Any EMIS should be fit for the purpose 

of the organization it serves – i.e. meeting the requirements assigned to the EMIS by 

the organization and suited to the current status and expected development of the 

organization‟s energy management s ystem. This means that during the audit the 

assessor cannot just restrict themselves to the technical components of the EMIS 

but also must address the interaction between the EMIS and the EMS. 

Figure 4. The technical components of EMIS 

2 In this c ontext ene rg y m anagem ent s ys tem c an refer to a f orm al m anage m ent s ys tem (s uch as the 

forthcom ing Eur op ean S tanda rd EN 16 00 1) o r the c ollection of business s ys tems and processes th at 

c om prise ope rationa l an d comm erc ial control ove r an org ani zations ene rg y use. 


Part A

2.3 What is the Scope of an EMIS 

Although, conventionally, EMIS are considered to operate at a site level, in practice 

EMIS can be implemented at many levels: 

� Simply an area of energy use – this may be a good starting point for those 

organizations unfamiliar with the technique; 

� Equipment or process – as an example one can use EMIS to control the air 

compressors though comparison of compressed air generated with the 

electricity used in generation, and through compressed air generated with the 

production. 

� Department level 

� Cost centre 

� Energy account centre 

� Site wide 

� Corporate – integrating the performance reporting from multiple sites into a 

corporate energy or environmental report. 

2.4 Outcomes and Benefits of EMIS 

The savings potential attributable to the implementation of an EMIS depends on a 

number of different factors: 

� The type of process the site is operating. 

� The maturity of the organization in terms of their energy management s ystems 

and procedures; 

� The abilities and motivation of the operational staff . There are many self 

assessment tools available to h elp evaluate this capacity. 

Of the three, the people element is the most important. It can therefore be difficult to 

define in advance the savings that could be obtained through implementation of an 

EMIS. 

It may be useful at this stage to clarify how imp lementing EMIS can lead to savings . 

There are a number of recognized outcomes of EMIS: 

� Reduced operational variability and embedding operational best practices. This 

revolves around operator ability to recognize when the process is operating well 

or poorly. Savings are made by eliminating the root causes of poor 

performance and promoting activities that lead to good performance; 

� Through investigation into the causes of poor performance and identification of 

energy conservation measures. As part of the p rocess of understanding the 

root causes of poor performance ideas for energy conservation measures may 

be developed; 

� Through benchmarking of similar processes across organizations. W hy should 

the same production processes have different energy performance 

characteristics at different sites? 

� At a strategic level, implementation of EMIS and energy management can also 

help to reduce the business risk an organization faces through volatility in 

energy prices. By reducing both the amount of operational variabi lity and 

through encouraging investment in energy conservation measures, the energy 

performance becomes more predictable . W ith predictable energy consumption, 

the organization is in a better position to negotiate energy supply agreements 

and to more accur ately forecast energy costs. 


Part A

Figure 5. Typical savings from EMIS 

What savings can you expect? 

Experienced gained within the context of the UK‟s Energy Efficiency 

Best Practice program suggests that, when properly implemented, 

an EMIS can save anywhere between 5% and 15% of an 

organization‟s energy consumption. 

The CIPEC Handbook proposes “as an initial approximation, 8% 

appears to be a reasonable estimate” [of the savings potential]. 

Against this, the important feature to recognize is that this potential is achieved with 

minimum capital investment. W ithin EMIS a proportion of the savings are derived 

from “operational best practices” i.e. improved behavior and elimination of waste. 

This means that most energy management programs offer a rapid payback on the 

small amounts of investment needed to improve the metering, analysis and 

reporting. 

Figure 6. EMIS within an Energy Management System 

Energy Management System 

Metering 


Data 

capture 

Reporting 

Data 

Analysis 

People 

Training 

Awareness 

Communication 

Motivation 

Technology 

Energy 

conservation 

measures 

By placing EMIS within a context of an energy management program which has 

continuous improvement as one of its objectives, EMIS can also lead to productivity 

improvements through the progressive elimination of wasted consumption . Using 

information gained about the behaviors that lead to reduced energy consumption, 

best practice is quickly identified and historic ways of working that are less efficient 


Part A

are challenged. Continuous monitoring of performance also means that when savings 

opportunities are im plemented they are sustained in the long term, as deviations 

from best performance can be quickly recognized and corrected. 

Figure 7. Savings from EMIS and capital projects 

kWh/Tonne kWh/Tonne of of Production 

Production 

System Operation Improvements 

Equipment Improvements 

2.5 Choosing the EMIS Auditor? 

Theoretical Equipment kWh/Tonne 

Time 

Variability Reduction 

Target kWh/Tonne 

Graph is not zero based and not to scale 

Unlike financial audits which require an external auditor, organ izations considering 

EMIS audits have the preliminary decision of whether to undertake the work in 

house, whether to employ an external supplier or whether to use a hybrid approach 

where the work is shared between an internal team and an external advisor o r 

advisors. Of the three approaches the latter is the most likely to produce results as 

it brings together both the knowledge and experience with the process itself and the 

external; expertise of the auditor on EMIS . 

2.5.1 What are the skills sets required? 

The table overleaf provides a summary of the tasks included within the scope of an 

EMIS Audit. Ultimately it is up to the Industrial Program Participant to decide which 

parts of the scope are best retained in house and which could be outsourced. 

2.5.2 Matters to consider 

W here the decision is taken to outsource some or all of the tasks, these are a few of 

the most important matters for consideration: 

� Be clear in your own mind what the scope of the audit should be – at what level 

is EMIS to be implemented – as described earlier there are a range of possible 

scopes for the implementation. Equally recognize what skills and time are 

available in house and what specific skills you need to source externally. If you 

already have metering and data capture expertise in hou se look for an auditor 

who can add to this with specific knowledge about analysis and reporting. 


Part A

� Don't dismiss candidates without specific sector experience – You may struggle 

to identif y EMIS auditors who have as much industry or sector specific 

knowledge as your own staff! The most highly performing audit teams will 

include key experts from your own organization and an external EMIS auditor 

who has complementary knowledge about metering, data capture, analysis and 

reporting and integration of EMIS withi n existing management s ystems. 

Table 1. Tasks and Skills in the EMIS audit 

Task Key Skills Comments 

Management Systems 

and Procedures 

Assessment 

Defining the Purpose of 


Com m unication skills 

Fam iliarity with 

m anagem ent sys tem s 

EAC definition Kno wl ed ge of process 

Metering and Data 

Capture Assessment 

Data Analysis and 

Reporting Assessment 

Developing the 

Business Case 

Better perform ed by an 

e xtern al advisor who can 

bri ng kno wledg e an d 

e xp er ienc e of other 

s ys tem s . 

Facilitation skills Us ing an externa l ad visor as 

facilitator will ensure that 

the definition includes all 

req uirem ents and is not 

c olou red by the int er nal 

politics an d po we r d ynam ics 

of the o rga ni zation. 

Kno wl ed ge of 

org ani zation al 

respo nsibil ities 

Kno wl ed ge of util ity 

distribution s ys tem s 

Kno wl ed ge of meter 

types 

Kno wl ed ge of data 

c aptur e sys tem s and 

s tanda rds 

Sys tem s integration 

e xp er ienc e 

Kno wl ed ge of process 

to ide ntify util ity dri ve rs 

Expe rience wit h 

s tatistical data an al ys is 

Expe rience wit h 

business inform ation 

s ys tem s and specific 

EMIS softwar e 

Financial an alys is an d 

m odelling 

Presenting the findings Present ation s k ills – 

both written an d oral 

Best perform ed jointly 

whe re the orga ni zation 

pro vi des the basic 

inform ation ab out the site 

and the ad visor pro vides 

k no wl edg e ab out EAC 

design 

Coul d be un de rtaken 

inter nall y. Specif ic sup po r t 

reg ar ding meter typ es an d 

installation constraints may 

be fou nd extern all y. 

Shoul d be pr ovi de d by an 

e xtern al advisor who has 

han ds on exp eri ence with 

EMIS and t hus can bring 

k no wl edg e of the t yp es of 

perf orm ance rep orting that 

is most effective. 

Coul d be do ne extern all y 

pro vi ded t hat all rel evant 

c osts can be ide ntified. 

The EMIS audit will be of 

little value if the 

recom m endations are 

neither und ers tood or 

accepted! 


Part A

� Look for EMIS or energy management experience. Anyone can learn sufficient 

terminology to speak EMIS Auditing, look for someone who asks relevant 

questions and listens more than they talk. These are signs of a professional. 

But don't rely on words alone. Look at what your prospective EMIS Auditor has 

done -- preferably for organizations of a similar scale and complexity to your 

own. Check out the auditor's level of experience --an auditor in high demand 

will likely perform several audits a year, and focus solely on auditing. Check 

references too. A good auditor should have at least two or three outstanding 

testimonials from people who are willing to put their names on the line. And, 

call references (if possible), rather than e -mailing to ask about the auditor's 

attention to detail, etc. 

� Look for strong communications skills – An auditor may have all the skills and 

experience in the world, but if they are unable to clearly communicate to you 

what changes are required and what the costs and benefits are likely to be you 

will end the EMIS Audit none the wis er. You're likely going to be working 

closely with this person anywhere from a few days to several weeks depending 

on the size of your company and scope of the audit. You want also to find 

someone who's likely to be flexible and responsive to your needs. Look for 

someone who's a good communicator that speaks in your business language at 

your level. The auditor should be able to - to a certain extent - link the changes 

needed for EMIS implementation to the overall business objectives of your 

organization. Otherwise, your audit could be limited - and serve as more of a 

generic checklist - due to lack of communication and general knowledge 

transfer. 

� If you want to see what type of audit report you're going to get, ask to see some 

of your potential auditor's past work. To manage confidentiality, encourage 

them to sanitize the report -- removing names, numbers, addresses, etc. before 

they give it to you. (If you get a report containing another organization's 

confidential information, strongly consider that the potential auditor is obviously 

not handling confidential information responsibly). Look for clear, concise 

documentation on what was audited and what was found, and for 

recommendations for improvement. 

2.5.3 How to solicit for an EMIS Audit 

There are three main stages to soliciting for an EMIS Audit: 

� Stage 1 – Identif ying a shortlist of potential auditors ; 

� Stage 2 – Getting good quality proposals from them ; 

� Stage 3 – Evaluating the proposals on a consistent basis 

W ith EMIS being an innovative technology there is a limited range of potential 

service providers; Efficienc y New Brunswick is working with various service 

providers to build service sector capacity in this area. Contact Efficienc y NB for a 

list of potential firms that provide EMIS services. 

Once the potential auditors have been identified you should solicit bids from them. 

The most reliable method is the Request for Proposals or “RfP”. The RfP should be 

clearly written, should set out the scope of the EMIS Audit and the specific inputs 

sought from the EMIS Auditor and should contain sufficient information to allow them 

to prepare bids on a common basis. The RfP will of necessity include some 

commercially confidential information, for this reason you may wish to contact the 

potential auditors and obtain signed Confidentiality Agreements from them prior to 

the RfP. 

The information you should provide at a minimum in the RfP is as follows: 

� General Administrative information and instructions to bidders : 


Part A

o Site contacts for technical issues and commercial issue s 

o Terms and Conditions of Engagement 

o Payment terms 

o Insurance requirements 

o W hether proposals can be submitted electronically 

o Any specific requirements concerning the structure/contents or 

presentation of the proposal 

� Description of the Operation, including site location and address, area, layout, 

etc. 

� Industrial Classification and types of products manufactured – This should be 

sufficient to inform the auditor on the complexity of the production processes. 

� W hat utility s ystems exist and their capacities – e.g. compressed air, boilers 

and steam generation, combined heat and power, refrigeration and cooling. 

� Minimum 12 months of monthly energy consumption data – this can be a 

summary of the invoiced amounts. Given the importance of demand charges in 

the overall costs structure in addition to consumption you should also provide 

the maximum or chargeable demand. This is to provide with auditor with a 

sense of the scale of the operations. 

� Minimum of 12 months of monthly production data, split by product. Again this 

is to inform the auditor of the scale and complexity of operations. 

� The intended scope of the EMIS Audit –will it relate to the whole site or just 

part of the site? 

� W hat services you wish to contract for – how much of the EMIS Audit scope will 

be outsourced? 

Most professional operators will have their own data request template specifying the 

information needs prior to submitting a proposal. 

Once the bids have been received they will need to be evaluated. The most formal 

methods of evaluation include: 

� Definition of the appropriate technical evaluation criteria; 

� Applying relative scoring to each of the criteria; 

� Ensuring that the proposals are evaluated by a team rather than an individual - 

this will reduce the possibility of bias. 

� Looking at the cost of the proposals and then dividing the cost by the technical 

score. This gives a measure of the value for money for each proposal and 

should be the key deciding criterion. 

Appendix 1 provides an EMIS RfP Template, as well as a scoring guide that allows 

scoring various criteria and weighting for evaluating proposals for EMIS Audits. 

Both documents are available electronically for use by industry. 

2.6 Helping the EMIS Auditor 

To improve the effectiveness of the support provided to the client, the client should 

be adequately prepared for the EMIS Audit. In practice this means: 

� Agreeing with the approximate time-plan prior to the audit. The auditor 

should expect to meet with representatives of the site‟s management team 

during the audit and it is imperative to se cure their availability; 


Part A

� Ensuring that the client has all documentation relating to current energy 

management s ystems and procedures available for audit. Relevant 

documentation is likely to include one or more of the following: 

o W ritten Energy Management P olic y (if present) 

o Improvement targets for organization; 

o Energy audit reports; 

o Comparisons of consumption against energy drivers. 

� Having data concerning the site‟s energy consumption and production 

available in an electronic format sent to the EMIS Auditor prior to visit. This 

manual includes a suggested data request template which the Auditor should 

send to the client in Appendix 2. It is recommended that the auditor sends 

the request to the client at least four weeks prior to the audit and to have 

the information returned at least two weeks prior to the audit. This will 

ensure that the auditor has sufficient time to do the preliminary data analysis 

and that the client has time to collate any additional information for the 

audit; 

� Committing to a senior management presentation of the audit findings. 


Part A

3 Prior to the EMIS Audit 

This section looks at the contact the auditor should have with the client prior to the EMIS 

Audit and suggests work that the auditor should have completed before to going to site. 

This section therefore addresses: 

The information needs of the auditor; 

Preliminary data analysis. 

3.1 Why gather information prior to the audit? 

There is a general principle in auditing (and possibly of application in other walks of 

life) called the 5 Ps – Perfect Preparation Prevents Poor Performance. This is true 

for the EMIS Audit, and it is recommended that the auditor has access to information 

prior to his/her arrival on site: 

� To avoid wasting time on site searching for relevant information ; 

� To generate insights to help focus activity during audit phase . 

The time available to an external auditor for an EMIS Audit is likely to be 

constrained hence there will be pressure to complete as much as possible while on 

site. 

The time of the auditor will be most effectively spent if: 

� the customer has prepared in advance as much of the data and information that 

the auditor will typically require during the audit; 

� The key individuals in the organizational hierarchy are available to meet with 

the auditor during site work . 

Equally the auditor should provide to the site a suggested time -plan for the on-site 

audit and a suggested list of individuals or functional responsibilities that the y would 

want to meet with during the site work. The EMIS Auditor should be sufficiently 

flexible in their approach to be able to fit their work around the time constraints 

faced by the site‟s management team. 

Table 2. Meetings during the EMIS Audit 

Who Why How Long 

Senior Management 

Team 

Production 

management 

Initial Kick Off Meeting 

Facilitated discussion on EMIS 

Purpose 

End of Site W ork W rap Up 

Current operational responsibilities 

Improvement s ystems in place 

Logical Energy Account Centres 

Energy awareness 

Key Performance Indicators 


Process understanding 


Part A 

1 hr 

2 hrs 

1.5 hrs 

Variable, depends 

on scope and 

scale of 

responsibility 

1 - 3 hrs

Who Why How Long 

Financial management Current accounting regime for energy 

costs 

Current accounting regime for other 

operational costs 

Energy Account Centres vs. Cost 

Centres 

Internal and External reporting 

requirements 

IT management Systems environment for data analysis 

and reporting 

Engineering 

management 

Maintenance 

management 

Production/shift 

supervisors 

Production/shift 

operators 

Structure of existing data historians 

Availability of production data 

Existing energy sub-metering and 

opportunities / constraints on da ta 

capture s ystems 

Logical Energy Account Centres 

Key utility s ystems 

Project opportunities for energy 

saving 

Is energy conservation integrated 

within scheduled maintenance 

activities 

W hat is process for reporting energy 

efficienc y issues and taking corrective 

action 


Opportunities for energy saving 

Information needs and preferred 

communication channels 


Opportunities for energy saving 

Information needs and preferred 

communication channels 

3.2 What sort of information should be requested 

1 – 2 hours 

2 – 3 hours 

2 – 3 hrs 


Part A 

1 hr 

Ad hoc 

Ad hoc 

Generally three main classes of information should be sought from the site prior to 

the EMIS Audit. Remember part of this informat ion should have been provided 

during the bidding/proposal stage, when moving into the project the auditor should 

only request those data elements that he/she does not currently hold .

A basic data request template is provided in Appendix 1. The following table 

provides guidance why certain items of information are being requested. 

Table 3. Basic data request 

What Why 

General Site Information: 

Site Layout Drawing (A3/A4 

scale) 

Generally of use as a map for when walking 

around site and to locate key items of process 

or utility equipment, such as the boiler plant, 

chiller plant, air compressors. 

Any process schematic available These will enable the auditor to understand 

process flows and products. 

Gas, electricity, water, 

compressed air distribution 

drawings (if available) as either 

schematics or layouts 

These will provide the auditor with an 

understanding of the complexity of the 

distribution s ystem and what metering already 

exists. 

Site floor area (and volume) Useful for estimating space heating loads as a 

function of overall loads. 

Number of employees Gives a rough measure of the scale of 

operation 

Key contact persons for site access, metering s ystems, trend data 

…etc 

Operating hours, by shift, daily, 

weekly, monthly, annual 

Brief details of principal products 

manufactured 

Again gives a rough indication of t he scale of 

operation and can be used as an indicator for 

the complexity of the analysis task required in 

ongoing management, as well as an indication 

of when energy is being consumed. 

This information is r equired to determine 

whether the product portfolio and production 

mix are going to be relevant utility drivers 

Utility System Capacities Understanding of the types of utility s ystems 

(i.e. electrical, steam, gas, air...etc) in 

operation – also useful for an approach to 

metering which would focus on the efficienc y of 

utility generation. 

Quantitative Data 

Utility Consumption and Costs: 

Monthly / W eekly consumptions 

and costs for all utilities 

(electricity, gas, oil, water, 

effluent) ideally for a period of 

three years 

More detail than requested in the proposal 

stage. W ill be needed to do the data analysis 

to determine the savings estimates from 

improved operational control. 


Part A

What Why 

Information regarding the tariffs 

applying to utilities (Fixed 

charges, unit consumption 

charges, billing periods, taxes, 

demand and distribution 

charges…etc) 

Demand profiles if available 

showing typical summer, winter 

weekday and weekend demand 

for utilities such as gas or 

electricity. 

Sub-meter Information 

Sub-metered consumption and 

demand (if available) data. 

Depending on the frequenc y of 

the data – if monthly then 3 

years, if weekly then one year. 

Production Data: 

Monthly / W eekly production 

rates (either tonnes 

manufactured, sales tonnes, 

sales units, raw materials inputs, 

etc) of key product groups. 

Ideally over the same period / 

frequenc y as the sub-meter data 

Management System Information 

Details of any production or 

environmental management 

systems in place, e.g. Six Sigma, 

TPM, TQM, ISO14001, e tc 

Details of any environmental 

legislation pertinent to the site at 

a Federal, State or Municipal 

level and impact on site 

3.3 Preliminary Analysis 

W ill be used to calculate the cost savings from 

EMIS implementation. Knowledge of the split 

between consumption and demand charges is 

critical in terms of calculation of cost sav ings. 

Are there opportunities for load profile 

management to reduce demand charges? Is 

there evidence of excessive consumptio n 

during non productive periods? 

This is to provide sufficient data points to allow 

regression analysis with a degree of 

confidence. W ill allow calculation of savings 

potential at an EAC or sub-meter level as well 

as at a site level. 

In order to do the data analysis required to 

estimate savings potential, the auditor will 

require a consistent data set. Having energy 

data at a different timing or frequenc y to the 

production data will limit their ability to derive 

valuable insights. 

EMIS should be embedded within the context of 

an energy management s ystem. The objective 

of this request is to understand whether the 

site has experience with operation of formal 

management s ystems. If Yes, then EMIS 

should be integrated within the ex isting 

systems and structures 

These may act as either stimuli or constraints 

for EMIS implementation. Knowledge of the 

regulatory context is useful to understand the 

regulatory drivers that the organization is 

facing 

There are a number of types of analysis that are useful to do prior to arriving on 

site: 

� Breakdown of consumption by Utility – this will help define which utilities 

should be the focus for expenditure on new metering; 


Part A

Figure 8. Breakdown of Energy Consumption 

� Breakdown of consumption by cost – W hile consumption is one guide, equally 

the expenditures by utility is also important . By looking at the contributions to 

the cost base does this change the focus for expenditure on metering ? Can 

pseudo metering be part of the solution? 

Figure 9. Breakdown of Energy Costs 

� Trend Analysis. Trend analysis is useful to determine wh ether consumption of 

energy is generally increasing or decreasing and equally can highlight seasonal 

variations which can be indicators for the types of utility drivers to include in 

the preliminary analysis. To hide the influence of seasonal factors and to show 

just the underlying trends in consumption it is possible to plot average monthly 

consumptions for the year to date. 


Part A

Figure 10. Electricity Consumption trends – Raw Data and smoothed 

Raw Data 

Smoothed Data 

� Single regressions. Using tools such as the Data Analysis Add -in in Excel the 

auditor should compare the variations in energy consumption for each utility 

against production and environmental factors. This will help to isolate the key 

utility drivers at the site level. If sub-metered energy data and the associated 

production breakdown are provided, then the auditor should attempt regressions 

at lower levels in the organization‟s energy consumption. 


Part A

Figure 11. Correlations – a word of warning! 

Figure 12. A example of a single regression 

� Multiple regressions . Multiple regressions should only be attempted if the 

auditor has discovered correlations using single regressions and that the 

correlations make some sense, i.e. that there appears to be some justification 

for the energy consumption and the variable to be related. Appendix 3 provides 

more information on the use of multiple regressions. 


Part A

Figure 13. Actual and Predicted Electricity (from Multiple Regressions) 


Part A

4 The EMIS Audit 

The EMIS Audit is about first identif ying whether there is a financial case for EMIS 

implementation and if there is , then selling it to the decision makers within the 

organization; 

In general terms the EMIS Audit consists of the main stages shown in Figure 1 4: 

Figure 14. EMIS Audit – The Key Stages 

Understanding the current Management Systems and Procedures, these provide the 

context for EMIS. The Management s ystems and procedures assessment is about the 

systems that are in place to convert the insights generated through analysis into 

action to continuously improve performance. An assessment template is provided in 

the supplementary information; 

Understanding the purpose of the EMIS at the site through discu ssions with key 

stakeholders; this should include identifying who is accountable for energy 

management and who is empowered to make decision that have an impact on energ y 

performance. 


Part A

Defining the Energy Account Centres . Definition of appropriate EACs is absolutely 

fundamental to EMIS Implementation. Energy Account Centres need to be logical 

levels at which to manage energy resource use as well as reflect the organization 

structures and responsibilities within the client organization. 

Assessments of Metering and Data Capture Systems and Data Analysis and Reporting 

Systems. Making sure that timely management decisions are made on the basis of 

valid data and information. 

Identification of feasible and desirable changes. The recommendations need to be 

framed within the overall objectives and aspirations of the client organization and to 

be coherent with the importance of utility costs to the organization, i.e. a 

CDN 2,000,000 EMIS implementation plan is unlikely to be acceptable to an 

organization whose energ y spend is CDN 5,000,000 per year; 

Estimating the Costs and benefits from EMIS implementation. This should include: 

estimating of EMIS savings using statistical techniques such as regression analysis 

and additional savings that may be sustained by EMIS su ch as behavioral changes. 

The costs will include changes to the metering and data capture s ystems, 

implementation of data analysis and reporting routines, and management skills 

development. 

Reporting and presenting the findings both initially prior to lea ving the site and in 

more detail within the report. W hat this means is that the report should contain no 

major surprises for the client organization and should be an accurate reflection of the 

subjects addressed during the audit. 

„Selling‟ the EMIS Implementation Plan. The EMIS Audit is the first stage in a process 

of determining the business value of EMIS and hence persuading customers to 

implement it. If the initial business case looks promising the next step is an EMIS 

Implementation Plan. The role of the EMIS Audit is also to “sell” the idea of an EMIS 

Implementation Plan to the customer. 

In this section we address the mechanics of the EMIS Audit introducing the assessment 

templates. The Assessment Templates can be found in Appendix 3. 

In Section 5, Developing the Business Case the templates are used to develop 

recommendations for the client organization. Remember that the assessment templates 

are not an end in themselves; their purpose is to provide a structured assessment 

methodology and to identif y gaps in the current practices of the client site. These gaps 

should then guide the auditor to identification of appropriate recommendations for 

change. 

4.1 Foreword – Is and Ought… 

One of the difficulties in providing a manual for EMIS auditing is the range of 

organizations it has to be relevant to. At one end of the spectrum will be the 

relative novices who have very little or even nothing in the way of energy 

management information s ystems and who simply rely on the monthly energy 

invoices to provide them with information concerning their patterns of consumption. 

At the other end will be those organizations who already have a functional EMIS in 

place who are undertaking the audit as a means of verifying that the s ystem is still 

fit for purpose. 

The Assessment Templates for the EMIS Audit can be used: 

� For the mature organizations as a comparison with what is currently the case 

� For novice organizations as a description of what ought to be the case. 

Sections 4.2, 4.5 and 4.6 provide some background to the A ssessment Templates, 

the scoring and criteria are to be found in Appendix 2. 


Part A

4.2 Management Systems and Procedures Assessment 

The purpose of assessing management systems and procedures is to ensure 

that the client has the organizational elements in place to translate the insights 

gained from data analysis and reporting into corrective action. If the client has 

an existing utility management s ystem this means assessing the s ystem from the 

perspective of embedding EMIS into it. If the client currently operates no dedicated 

energy or utility management s ystems, this means looking at the management 

systems in place, for manufacturing improvement, environment or quality and 

identif ying how utility management could be either be embedded in them or could 

adopt similar methodologies and structures. 

Figure 15. Management Systems and Procedures Assessment - Dimensions 

Each of these dimensions is addressed in detail in the following sections and 

guidance provided in the use of the assessment criteria. The actual Assessment 

templates are found in Appendix 3. 

4.2.1 Procurement and Investment 

For procurement and investment four criteria are recognized: 

1. Polic y to specify energy performance in all major investment – i.e. In addition to 

production rates, product qua lity etc, are energy performance specifications 

determined for any new plant? 

2. Specific procurement policies for efficient products, e.g. motors, lighting, 

controls – i.e. Are there specific policies in place to purchase only high 

efficienc y items such as m otors and lighting when replacements are necessary? 


Part A

3. Use of data and analysis is used in procurement of utilities – Is there evidence 

of analysis of energy commodity procurement and management from the filter of 

ensuring that the conditions are in place to address: i) operational requirements 

and maximum flexibility of the facility; ii) negotiation of optimal contracts; iii) 

daily scheduling and interruptible options are taken advantage of and iv) bills 

are analyzed for errors and detailed consumption data i s kept. 

4. Maintenance budgets include repairs to energy systems - Does the maintenance 

budget include specific line items of expenditure for repairs and improvements 

to energy s ystems 

4.2.2 Organizational Structure 

The dimension of organizational structure contains five criteria: 

1. Explicit energy management program – i.e. Is there an explicit energy 

management program or guiding vision for energy management activities at the 

site? 

2. Objectives set for utility performance improvement - Have objectives been set 

for utility performance improvement? These may also be termed strategic 

targets for the organization. 

3. Explicit management commitment – i.e. Is the site senior management 

committed to improve energy performance, and if so what form does this 

commitment take? 

4. Energy teams established and key stakeholders included - is there an energy 

management team or some other organizational grouping tasked with oversight 

of the energy management program and if so what is its makeup. 

5. Accountability for energy performance devolved to production / operations – i.e. 

are line managers, operations team and operators held accountable to their 

managers for energy performance. If the production and operations =staff are 

held accountable for performance are they also empowered to instigate changes 

to improve performance? 

4.2.3 Management Procedures 

The dimension of Management Procedures contains seven criteria: 

1. Regular reviews of energy performance – i.e. is the review of energy 

performance aligned with the reporting frequenc y of the data analysi s s ystems? 

2. Actions assigned and followed up – As part of the review process are actions 

assigned to individuals and then followed up in subsequent reviews. 

3. Staff incentives – Are the staff motivated to improve the energy performance of 

the equipment under their control, and what form do the incentives or motivation 

take. 

4. Sufficient resources allocated - Have sufficient resources been allocated to 

operate a management s ystem in terms of management time etc? 

5. Regular reviews - How frequently is the operation o f the management s ystem 

reviewed to ensure that it continues to be fit for purpose? 

6. Operational / Maintenance schedules - Do operation or maintenance schedules 

exist to reduce energy performance - e.g. start up/shut down lists, preventative 

maintenance linked to energy consumption. 

7. Active reporting s ystems - Is there a reporting s ystem for utility waste issues - 

E.g. steam leaks, compressed air leaks etc. - that facilitate their identification 

and rectification? For example, are triggers sent to initiate a corrective work 

order? 


Part A

4.2.4 Communication Training and Awareness 

Under the dimension of Communication training and awareness the following criteria 

are considered: 

1. Training of operational staff - Are operational staff trained about the utility 

performance of the items of plant under their control? 

2. Training of Energy team and Senior Management - Does the Management team 

and Energy team(s) have sufficient knowledge about utility use to manage this 

resource? 

3. Communication of energy performance to all staff - How is utility performance 

communicated to staff? Internal newsletters are one example. 

4. Energy performance included in reports to external stakeholders - Is any 

information about utility performance communicated to external stakeholders, 

e.g. emissions, SERs, savings achieved? 

5. Awareness campaigns undertaken regularly - Are awareness campaigns held 

regularly reminding staff of their obligations to reduce utility consumption and 

providing guidance about how this can be achieved? 

4.3 Defining the Purpose of EMIS 

The first step in an EMIS Audit is to develop an understanding from the client‟s 

perspective what EMIS should deliver for them, i.e. defining the purpose of 

implementing EMIS in the client‟s organization. The auditor should recognize that 

prior to the audit the management team and other stakeholders in the client site may 

only have a limited understanding about what EMIS is about . The process that the 

auditor uses to define the purpose can be an important step in increasing awareness 

and understanding about the benefits of EMIS to them. 

One technique for defining the purpose of an EMIS is drawn from “soft s ystems 

methodologies” developed by Peter Checkland and others which historically have 

been used in the design and implementation of information systems in organizational 

settings 3 . 

The technique starts with the auditor and the management team developing what is 

termed a “root definition” for the EMIS. Root definitions take the form of: 

W here: 

A s ystem to do “P” by “Q” in order to achieve “R” 

� P = the Purpose of EMIS i.e. Summarized by the question “W hat?” – W hat is the 

EMIS to achieve for the organization; 

� Q = Any Qualifiers ? Best summarized by the question “ How” – How is the EMIS 

to do this and what are the limitations on the operation of EMIS ? 

� R = the Results, best summarized by the question “W hy?” – W hy is this 

organization interested in EMIS what results do they expect? 

Different people within the organization will have different perspectives on P ,Q and 

R and by understanding the range of Ps ascribed and the range of R‟s expected 

helps to frame the overall scope of the EMIS and can inform the both the subsequent 

stages of the assessment process and the development of recommendations. 

The following are examples of how different functional responsible within a n 

organization may express different root definitions for EMIS: 

3 Checkland P.B and Ho we l l, S. 1998. Inform ation, s y s tems and inform ation s ys tem s : m aking s ense of the 

field. Joh n W iley & Sons Toro nto. 


Part A

Finance Manager 

“A s ystem to deliver better cost allocation to our products through measurement of 

energy consumption in order to improve the profitability of our production.” 

Plant Manager 

“A s ystem to improve the operational efficienc y of our site through identification and 

elimination of energy wastage in order to reduce our overall costs of production.” 

Environmental Manager 

“A s ystem to improve energy efficienc y through management of energ y performance 

in order to comply with the environmental permit/ license requirements of our 

regulatory agenc y” 

Marketing Manager 

“A s ystem to improve the perception of our company by our customers through 

demonstrating our concern about our impact on the en vironment in order to increase 

our market share”. 

W hilst none of these example definitions are contradictory they each express 

something different about the expected deliverables from the EMIS and hence can 

inform the overall s ystem design. 

It is best to try to develop the root definition with the senior management team as a 

form of facilitated discussion with the objective of achieving consensus typically at 

the kick off meeting on the first day. It is equally possible to do this through 

individual discussions and then to present the various views to the management 

team at the close out/wrap up meeting with the objective of achieving a consensus 

position. 

4.4 Defining the Energy Account Centres 

The Energy Account Centres (EACs) are the building blocks of EMIS ; they are the 

level in the organization at which energy performance is managed. This means that 

at the EAC level the site must able to measure all energy flows, identif y the factors 

that influence energy performance and to define accountability to a singl e person 

within the management structure. Defining the EACs in the site is one of the most 

important actions of the EMIS Auditor. 

There is no firm definition of what an Energy Account Centre looks like, it is 

determined by the type of production process, the size of the energy flows and the 

division of responsibility in the organization. An EAC can be an individual item of 

process equipment, an area of production, a production process or a whole 

production line. The only requirements for EACs are: 

� Associated drivers can be measured. 

� A production variable is identifiable. 

� Ownership of EAC cost can be established. 

� Accountability can be assigned 

� EAC cost ownership fits the company's existing structures. 

� Cost savings justif y the costs of energy measurem ent. 

The issue about cost savings is important – remember you may need multiple meters 

on a single utility such as electricity or gas in order to measure all of the energy 

flows into a single EAC, and if the costs of measurement outweigh the potential 

value such measurement could generate then the scale of the EAC is too small. 

There are effectively four stages to E AC definition: 


Part A

Stage 1 – Mapping the EAC to the production process 

Stage 2 – Aligning the EACs with the organizational responsibilities 

Stage 3 – Verifying that the EACs can be measured individually given the 

constraints of the utility distribution s ystems 

Stage 4 – The sanity check – ensuring that the costs of metering at the EAC level 

are justifiable by the expected savings. 

4.4.1 Mapping the Energy Account Centres to the Process 

The first stage will typically involve discussions with between the EMIS Auditor and 

the site‟s own process specialists to determine the breakdown of the production 

process into logical EAC. From a process perspective the dec isions are governed 

by: 

� The energy consumption of the unit operations within the process – If certain 

unit operations are not especially energy intensive they can be grouped 

together within an EAC. If a particular unit operation is energy intensive it may 

justify being an EAC in its own right; 

� The ability to measure inputs and/or outputs to the process. The energy 

performance of the EAC is measured through its relationship with the utility 

drivers – i.e. the production drivers, the environmental drivers a nd the 

operational drivers. For an EAC to be manageable the utility drivers relevant to 

that account centre must be measurable. 

In addition to the process EAC, the utility generation account centres should also 

be defined. These will typically be: 

� The boiler house or steam generation s ystems 

� Compressed air generation s ystems; 

� Refrigeration s ystems; 

� Air handling units for large scale space heating/air conditioning 

� W ater treatment and waste-water treatment plants 

The energy consumption of these account cent res will typically be targeted against 

the supply of the utility to the process – e.g. Boiler natural gas against steam 

generated, refrigeration electricity against the supply of chilled water, etc. 

4.4.2 Aligning the Energy Account Centres 

The next stage, once the EACs have been initially defined through reference to the 

process, is to then map them to the organisational responsibilities. Each account 

centre should be within the responsibility of a single individual in the organisational 

hierarchy, such that th ey can be held accountable for performance. 

Based on the process, a single individual may have responsibility for multiple 

account centres. In these circumstances the EACs can be grouped into 

Departments, where the individual has departmental responsibili ty. 

The energy performance of the department then becomes the sum of the energy 

performance of the individual EACs, and the energy performance of the site is the 

sum of the energy performance of the Departments. I t is then possible to report on 

actual consumption, target consumption, variance and Cusum (cumulative sum of the 

variances) all the way up through the organization. Figure 16 Overleaf shows this 

hierarchy. 

This individual can then be provided with reporting at both an EAC level and at a 

departmental level, where the performance of the Department is the aggregate of the 

performance of the EACs within that department. 


Part A

4.4.3 Utility Distribution Constraints 

In the previous two stages, the EACs have been defined on an ideal basis, taking 

into consideration both the process and the organisational demands. It is at this 

point that compromises away from the ideal situation start to occur. The first 

constraint is likely to be the layout of the utility distribution s ystems which may limit 

the ability to devise a metering s ystem allowing the measurement of all utilities flows 

(or indeed utility drivers) into and out of an EAC. 

If this situation occurs it may be necessary to consolidate EACs into larger 

groupings, if that allows the energy flows or utility driver s to be measured. 

4.4.4 The Sanity Check 

The final check on the Energy Account Centre structure, happens after the metering 

and data capture assessment. As will be explained later, one of the purposes of the 

metering and data capture assessment is to determine any changes to energy or 

utility driver metering. 

If the number of meters, and hence the probable cost of the new meters, is high it 

may be difficult to justif y their inclusion on the EMIS s ystem on the grounds of the 

potential cost savings alone. Again the solution in this situation is to consolidate 

EACs, looking at those EACs with the smallest potential consumption first. 

Figure 16. Site broken down into Departments and EACs 

Site 

Department 1 

Steam 

Department 2 

Σ� 

Energy account centre 1 Σ� Target = fn(Prod, T, RH?) 

Electricity 

Natural Gas 

Energy account centre 2 

Energy account centre 3 

Department 3, etc 

4.5 Metering and Data Capture Assessment 

Calculate: 

• Actual Energy 

• Target Energy 

• Energy Variance 

• Actual Cost 

• Target Cost 

• Cost Variance 

• Cusum 

Metering and Data Capture comprises the elements of the Energy management 

information s ystem that provide the raw data for analysis and therefore 

encompasses the energy meters and other process sensors and the data capture 

systems. This assessment follows on from the definition of the Energy Account 

centres and asks the question – does the site have sufficient meters of a good 

enough quality in order to provide robust measurements of energy flows into each of 

the Energy Account Centres identified? 


Part A 

Σ� 

Σ�

Figure 17. Metering And Data Capture Assessment - Dimensions 

4.5.1 Utility Meters 

The primary sensing elements (meters, sensors, etc…) are the source and 

foundation of an EMIS. The proper design, installation and maintenance will impact 

the accurac y and reliability of the utility data. The assessmen t tool provides an 

overall indication of suitability of the current metering s ystems and where further 

effort is required to „shore-up‟ the front end metering s ystems. 

The utility meters assessment can be broken down into 5 categories: 

� Key Energy Account Centres (EACs) 

� Sub-meter Coverage on EACs 

� Meter Types Appropriate for Function 

� Meter Installation Satisfactory 

� Meter Accurac y/Repeatability 

EACs are the product of dividing a facility‟s energy consumption into different 

centres. Some examples of EACs can b e production areas, whole production lines, 

or even individual machines. Facilities should be assessed on their ability to divide 

their operation into appropriate EACs. 

Sub-metering Coverage represents the amount of energy consumption actually 

being metered within an EAC. W hile a facility has their main key utilities (gas, 

electric, etc.) being metered, sub -meters measure utility feeds into specific EACs. 

The largest sources of energy consumption should be measured within all EACs. 

Auditors should compile a list of all utilities feeding each EAC. Sub -metering 

Coverage is represented as a percentage of sub -meter measured energy 

consumption versus the actual energy consumption of the facility. 


Part A

The Meter Types Appropriate for Function assessment is to make sur e that the 

meters being used have the correct range, measurement units, and process 

conditions for the application and surrounding environment. Facilities are scored on 

a 0 to 10 scale based on their ability to use the appropriate meters for the 

application. 

The Meter Installation Satisfactory assessment is to make sure that the 

mechanical installation of the meters is correct, the metering s ystems are eas y to 

maintain and calibrate, calibration records are kept, and that the piping is 

appropriate for the m eter. Facilities will be scored on a 0 to 5 scale based on thes e 

requirements. 

Meter Accuracy and Repeatability is the final assessment for utility meters. As 

meters start to age their performance will start to decline without the proper 

maintenance, calibration and periodic inspections. Reference materials that illustrate 

proper calibration and maintenance procedures should exist. Also, external factors 

and process conditions can contribute to errors in measurement. 

Some common things to remember when ass essing meters are: 

� Meters that measure volumetric gases or vapors often require external pressure 

and temperature compensation. Natural gas measurement using turbine 

meters requires pressure and temperature compensation to reference 

conditions. 

� It‟s ideal to measure mass rate when the desired outcome is mass total. 

Steam for example is typically measured as mass rate and is then converted to 

energy total. 

� The range of highest to lowest flow rates that can be measured are called 

rangeability or turn-down ratio. 

� Metering signals need to be correctly compensated in the host (PLC) s ystem. 

An example would be meter k -factor. The meter k -factor is used to convert 

pulse trains into measured volumes. 

� The ratios of PT (voltage or potential transformers) and CT (current 

transformers) must match the receiving devices. 

� The ranges of PT and CT must be appropriate for measurement against name 

plate ratings on electrical equipment. 

� W hen serial data is transmitted, requirements to handle roll -over of any register 

values in the meter or host (PLC) system must be confirmed. An example is 

when passing short integer values. 

4.5.2 Utility Drivers 

Utility drivers are factors that can influence how much energy is being used for a 

given EAC. Three types of utility driver are recognized: 

� Production Drivers 

� Environmental Drivers 

� Operational Drivers 

Production drivers are typically: 

� Production volumes; 

� Product type, if different operating conditions exist based on product type; 

� Building occupanc y hours . 


Part A

Environmental Drivers are features of the environment in which the production 

takes place; generally these are outside of the control of the organization. Typ ical 

environment drivers are: 

� Ambient conditions such as temperature and relative humidity 

� Derived ambient conditions such as Heating Degree days and Cooling Degree 

Days; 

Operational drivers are the operational conditions in the direct control of the 

organization and which influence energy consumption: 

� Temperature set points; 

� Pressure set points; 

� Production status, i.e. whether a line is running; 

Identifying the correct drivers to use relies on a basic knowledge of the production 

process. This being the case it is useful to involve the site‟s own experts in the 

process of identif ying relevant drivers. The risk the auditor faces when following 

this route is that the expert will reel off a list of some 10 -15 factors, most of which 

are unable to be measured on an ongoing basis. The skill of the auditor is in 

narrowing down such long lists to those which have the greatest influence and 

recognizing that the impact of the remaining factors will generally be lost in the 

„normal‟ variation of energy performance. 

There are 3 things to look at when assessing utility drivers: 

� That the key drivers have been identified 

� That measurement of th e driver is appropriate – the same issues about sensor 

type, accurac y, repeatability and rangeability apply to driver measurement as 

much as to energy measurement. 

� That the drivers can be aligned in time with the energy consumption 

measurements i.e. if energy metering is providing integrated total consumptions 

on a 15 minute basis that the drive is either totaled or averaged over the same 

time period. 

Drivers that are identified and selected should have an impact on the process of the 

system. Each driver‟s impact on the energy consumption of the system should be 

identified and measured properly. 

4.5.3 Data Capture and Storage 

Data Capture and Storage is the recovering of data from the meters so it can be 

used in analyzing the facility‟s energy consumption. Some ex amples of Data Capture 

and Storage s ystems are: 

� Programmable Logic Controllers (PLC) such as AB RSLogix platforms. These 

are often used for the capturing of the data. 

� PC based databases such as MS Access and SQL Server. These types of 

systems are used for the storing of the data. 

� Remote Terminal Units (RTUs). Used primarily for capturing data and 

performing industry specific metering calculations (AGA and ISO). 

� Rock well software applications such as Data Historian. 

The 6 different areas in Data Capture and Storage that can be assessed are: 

� Effort in Meter Reading 

� Effort in Data Entry 

� Error Checking Mechanisms Included 


Part A

� Frequenc y of Data Capture Appropriate 

� Degrees of Separation Between Meters and Storage 

� Historical Data Storage Sufficient. 

The Effort in Meter Reading and Data Entry sections deal with the assessment of 

the manual effort required to collect and store data from the meters in the facility. 

The less manual effort required, the more successful the outcome will be. 

The Error Checking Mechanisms Included section deals with making sure that error 

checking exists in the data capture and storage s ystems and the assessment of the 

error checking s ystems that are in place. The more automated these s ystems are, 

the more successful the outcome will be. An imp ortant thing to note is that totalizers 

should be configured for proper range and roll -over since error checking wouldn‟t 

necessarily uncover that issue. 

The Frequency of Data Capture Appropriate section assesses if the frequenc y at 

which the system captur es data is suitable for the EAC. Ideally the Data Capture 

System should be password protected in order to prevent operators from being able 

manipulate the system but still allow maintenance personnel to understand and 

troubleshoot the s ystem. 

The Degrees of Separation between Meters and Storage section assesses the 

reliability of the Data Storage System in its ability to automatically collect and store 

data. 

The Historical Data Storage Sufficient section deals with the size of the Data 

Storage System. The size of the s ystem needs to be appropriate in order to be able 

to report on shifts, days, months, and even years of data. 

Scoring in all areas requires subjective opinion during the audit. 

4.6 Data Analysis and Reporting Assessment 

Data analysis and reporting at the facility are assessed in terms of people, 

practices, software and tools. 

� The assessment is to ensure the installed analysis and reporting tools and 

software are capable of providing the necessary analysis and reports to 

effectively target the energ y consumption for each energy account centre. 

� Processes are considered in the distribution and communication of this analysis 

and performance against targets. 

� People are required to maintain the reporting s ystem and to ensure the reports 

are distributed and communicated effectively. This section includes an 

assessment of the s ystem support skills necessary to operate and maintain an 

EMIS s ystem. 


Part A

Figure 18. Data Analysis and Reporting Assessment - Dimensions 

As before each of these dimens ions is addressed in detail and guidance provided in 

the use of the assessment criteria. A tabulated assessment matrix for each area is 

included in Appendix 2 

4.6.1 Data Analysis 

Energy data analysis encompasses the manipulation of data on energy consumption 

and drivers in order to determine energy consumption, targets and KPIs over a given 

time period. The prime aims of data manipulation are shown below in Figure 19 


Part A

Figure 19. The objectives of data analysis 

Data manipulation 

Interpolation 

Rate to 

consumption 

Convert units 

Verify and correct 

Breakdown use 

and cost 

Pie charts 

Line graphs 

Profiles 

Contour plots 

Bar graphs 

What is energy 

data? 

Energy Data Analysis 

What is energy 

data analysis? 

Understand 

variability 

Why do I need to 

analyse data? 

Variance analysis 

Scatter plots 

Visualisation 

Regression 

(single/multiple) 

Data mining 

Calculate targets 

Control limits 

Modelling 

Trend analysis 

Statistical process 

control 

Control limits 

Dashboard 

(red/amber/green) 

Calculate KPIs 

Efficiency 

measure 

Specific energy 

use 

Average use 

Control charts 

Management 

reports 

Appendix 3 contains scoring and assessment matrices. The assess ment of data 

analysis should be analyzed under five criteria: 

� Scale of system appropriate to complexity of analysis . As part of an EMIS 

audit it is necessary to determine what analysis is required by all parts of the 

organization by the client – these requirements may include targeting on a shift 

by shift basis, trend analysis, control plots, bill validation, load profiling. It is 

necessary to determine whether the EMIS system is capable of providing the 

level and detail of analysis required by the client. 

Suggested analysis considerations are shown in Figure 15 below. 

Consideration must also be given as to whether the EMIS is to provide analysis 

for a large number of meters and whether it is required to serve a single 

operational site or multiple locations . 


Part A

Figure 20. EMIS system complexity 

Number of 

meters 

Sampling 

frequency 

IT 

infrastructure 

complexity 

Number and 

complexity of 

reports 

Size of 

organisation 

Simple PC based, 

spreadsheet 

Small scale, multiuser 

Single site, 

Complex database 

< 10 meters >50 meters 

< 1 reading/shift >1 reading/hour 

Single PC Network of servers 

Small single site Complex single site Multiple site 

Multi site, 

Complex database 

Few simple reports many reports, integrated management reports 

� System Architecture. Is the data historian directly interrogated by the EMIS or 

is it necessary to extract data from the data historian and process 

independently from the data historian? 

� Comparison of performance against drivers . Is the energy consumption 

compared and correlated against utility drivers such as production rate, product 

mix, ambient temperature or occupanc y? Are the appropriate drivers used? 

Utility drivers are independent variables which have a direct impact on en ergy 

consumption - such variables as production rate, product mix, occupanc y and 

ambient temperature. It cannot be assumed that these drivers have a significant 

impact on consumption. As discussed in Section 4.6.2 best practice is to 

perform multiple regressions against a number of drivers and then only to 

consider those drivers which have a statistically significant relationship. 

Multiple regression is further explained in Appendix 4 

� Data analysis over flexible time frames. Can data analysis be performed o n a 

daily, weekly, monthly basis using the same database? i.e.: is it possible to 

change the time frame over which analysis is performed without having to 

recreate a new data base. Can data for analysis be selected over a flexible time 

period or between an y start and finish date and time? 

� Data aggregation over flexible time periods. Is it possible to aggregate 

consumption and provide reports in terms of consumption over a shift, day, 

week, month etc? 

4.6.2 Target Setting 

Assessment of target setting analysis invo lves four criteria. 

Targets based on analysis of data: Are targets set based on a set number or 

on some form of analysis of consumption and utility drivers. 


Part A

Figure 21. The spectrum of targets 

Regression 

Link to drivers 

Suited for 

variable/mixed 

production rate 

No targets 

Arbitrary target 

eg: 10% reduction 

None 

Target based on 

previous yr SEC 

eg: -3% in kwh/ton 

Target based on 

linear regression v‟s 

production 

Targets based on 

multiple regression, 

multiple drivers 

Single Multiple 

No link of target with drivers Detailed target based on relevant drivers 

No link Minimal for constant production, single product Variable, multi-product 

� Realistic targets defined. Are the targets realistically achievable with in a 

meaningful time frame? It should also be considered whether the targets are too 

slack and as such will provide no incentive for improvement. 

� Targets accepted by energy account centre owners. Have targets been set 

remotely and imposed on local managers or supervisors ? Are the targets 

realistic and accepted? 

� EAC owner accountable for performance and empowered to make 

improvements. Is the EAC owner directly responsible for performance or does 

someone else have control? Are they empowered to implement impr ovement 

measures? 

� Target setting process inclusive. Have the individuals who will be 

accountable for the performance against target been involved in the target 

setting process? Is there local ownership of the targets? 

4.6.3 Energy Performance Reporting 

Six criteria are included in evaluating this aspect of an EMIS. 

� Timeliness of reports: How quickly are performance reports available after the 

period of measurement? 

� User friendliness of reports: Are the reports understood by the users and do 

they contain data that has been agreed with the users? 

� Content of reports: Is the data or information in the reports sufficient to 

stimulate action and discrete enough to direct the focus of the action? 

� Readership of reports: Are the reports available to all or restricted to a small 

set of key users. Are the reports paper based or live and generated directly 

from the data 

� Ability to roll up performance: Is it possible to drill down and look at 

performance from a site level to department to EAC and is the data consistent 

through the hierarchy? 

� Integration with other IT systems: Is the data in the performance reports 

available to other internal IT s ystems 

4.6.4 System Support Skills 

This section addresses the skills within the organization required to maintain an 

EMIS once implemented. An EMIS is a s ystem involving hardware for data capture 

(i.e. meters and networks), software for analysis and reporting and people - the 

management system part of EMIS. In this section we look purely at the technical 

skills required to maintain the hard ware and software. 

Five criteria are included in evaluating this aspect of an EMIS. 


Part A

� Capability to maintain meters and data capture system: Metering s ystems 

and data capture networks require routine maintenance and can require repairs. 

� Data capture, analys is and reporting on a single network: Are the s ystems 

on a single network where components can readily communicate. 

� IT environment up to date: Are operating systems and software up to date and 

maintained? Is technical support available if required? 

� Capability to maintain and operate an EMIS: Is there the ability to correct 

data, reset targets and modif y reports? 

� Technical skills to analyze data and set targets: Data analysis uses 

statistical methods and target setting often uses regression analysis. Are 

people available and involved with the skill necessary to analyze the data and 

set targets? 

4.7 During the Audit 

W hilst the auditor is expected to manage their time, we offer the following 

approximate guidelines for the amount of the total site time that should b e spent on 

each activity: 

Table 4. Approximate time requirements of key activities 

Activity Approximate % 

of Site Time 

Purpose Definition 5% 

Definition of EACs 10% 

Metering Audit 

(including definition of EACs) 


Part A 

15% 

Data Capture Systems Assessment 15% 

Data Analysis and Reporting Systems 

Assessment 

Management Systems and Procedures 

Assessment 

Development of Initial recommendations 

and preparation for wrap up meeting 

Following the site time, the auditor will need to prepare their report. It is r easonable 

to expect that the EMIS Report will be complete within two weeks following the end 

of the site work. As another “rule of thumb”, the auditor should typically spend 1 

day of reporting time per 4 days of site work. 

An Audit Checklist is presented overleaf. This contains the key performance criteria 

that the site work of the audit should meet. The auditor should be working 

throughout the audit to meet the criteria and prior to leaving the site should verify 

that they have gained sufficient informat ion and understanding of the site to be able 

to demonstrate that they have met the criteria when drafting the EMIS Audit report. 

20% 

20% 

10%

4.8 Before leaving the site 

Prior to leaving the site it is good practice to present the initial findings to the site 

sponsor and the senior management team. The objective of this presentation is to 

gain their immediate feedback on any recommendations that the auditor is 

considering for inclusion in the report and should include: 

� The agreed purpose of the EMIS; 

� The estimated benefits of EMIS; 

� The functional definition of EMIS and how it will integrate with the existing 

systems; 

� The management s ystems and procedures actions; 

By holding this wrap up presentation, when the report is delivered it should contain 

no major surprises for the organization and hence should be accepted without need 

for major revisions. 


Part A

Table 5. EMIS Audit Checklist 

EMIS Audit Checklist 

If you can tick all the boxes the audit site work is complete 

There is an agreed purpose for the EMIS 

The objectives for implementation of a new EMIS or improvement of an 

existing EMIS have been agreed and can be clearly articulated 

The Energy Account Centres must have been identified 

The existing metering have been assessed and any changes to the 

metering have been determine d 

All new meters have been identified and approximate locations 

determined. This should include approximate sizing of fluid meters for 

budgeting purposes 

The utility driver data required for analysis has been determined and 

any new meters or sensors required have been defined 

The existing data capture and storage s ystems have been assessed 

and any changes determined 

The interface between data capture and storage and data analysis has 

been considered and a solution identified 

The requirements for data analysis have been assessed and the 

frequenc y of analysis defined 

The process for setting targets and the key stakeholders have been 

identified 

The energy reporting needs have been identified 

The management systems and procedures have be en assessed and the 

relationship between EMIS and either the existing energy management 

program or any other continuous improvement program has been 

identified 

You have obtained sufficient information from the site to estimate the 

benefits of EMIS in bo th financial and non financial terms 

You have obtained sufficient information from the site to estimate the 

approximate costs for implementation of EMIS 

You have obtained sufficient information from the site to define the 

activities and costs for dev elopment of the EMIS Implementation plan . 


Part A

5 Developing the Business Case 

Through gathering information on the client and using the assessment templates the 

auditor should be able to score the client against the multiple criteria and arrive at a 

quantitative and qualitative assessment of the profile of the client site in terms of their 

current EMIS and energy management program . This is then the basis for developing 

recommendations appropriate to the site. Figure 22 below shows the typical output of an 

EMIS Audit presented as a Gap Analysis: 

Figure 22. Gap Analysis from an EMIS Audit 

In developing recommendations there are four main stages: 

Generating the functional definition of the EMIS – this should explain to the 

organization what the E MIS will do for them and explain in outline terms how it will do 

this; 

Identifying the recommended changes required – these will be the concrete actions 

that the organization should take and will involve: 

� Changes to the metering s ystems 

� Changes to the data capture and storage s ystems 

� Changes to the data analysis and reporting systems 

� Actions in terms of management s ystems and procedures 

� Actions in terms of training, awareness and communications ; 


Part A

� Prioritizing the recommended changes and providing cost estimations where 

relevant. 

� Calculating and presenting the savings from EMIS. 

Each of these points is expanded upon in the following sections. 

5.1 Generating the functional definition of the EMIS 

The most appropriate EMIS for an organization will depend on a number of key 

factors: 

� The size and scale of the organization; 

� The defined purpose of the EMIS; 

� The budget available for implementation. 

It is possible to define 5 levels of EMIS ; the most basic spreadsheet based s ystem 

at Level 1, and a real time data capture an d analysis s ystem (closely integrated to 

the site‟s control s ystem) at Level 5. This is shown in Table 4 overleaf. In 

generating a functional definition for the EMIS the auditor can make reference to the 

various levels of EMIS to identif y and communicate what would be the most 

appropriate level of system for the organization. As with any classification, the 

levels are not cast in stone and s ystems which share features between two levels 

are equally acceptable. 

The functional definition should build on t he definition of purpose for the EMIS that 

was agreed-upon with the site and should be used to both communicate what the 

EMIS would „look‟ like for the site and to provide a framework for the 

recommendations for change. 

In their Handbook on EMIS, CIPEC pro posed that the key deliverables from an EMIS 

should comprise: 

� Early detection of poor performance; 

� Support for decision making; 

� Effective performance reporting; 

� Auditing of historical operations; 

� Identification and justification of energy projects; 

� Evidence of success; 

� Support for energy budgeting and management accounting; 

� Provision of energy data to other s ystems. 

For a small organization all of these deliverables could easily be achieved through a 

Level 1 s ystem. At the other end of the spectrum, if you were responsible for 

managing the energy on a multi -million dollar production facility or facilities with 

over 100 energy meters per facility and capturing data at 15 minute intervals, a 

spreadsheet would not be sufficiently powerful to meet your needs an d you would be 

looking for a Level 3 system or above. 

Another factor to consider when generating the functional specification (and to a 

lesser extent when considering the overall purpose of the EMIS) is the available 

budget for action. It is difficult to provide approximate costs for the various levels of 

system; the total costs will be highly dependent on: 


Part A

Table 6. EMIS Levels 

EMIS Level Outline description Qualifying features 

Real time data s ystem closely integrated with 

SCADA or other process control s ystems. Minute by 

minute data frequenc y. Network based s ystem with 

multiple users. Users can call on a suite of 

performance reports which can be user configured to 

enable data mining and analysis. 

Not real time but data system operating at flexible 

analysis intervals (e.g. hourly, shift based, daily). 

Data entry automatic with energy consumption and 

other variables on 15 minute – 1 hour frequencies 

and production data on hourly or shift based. W eb 

or intranet based with multiple users. Users can call 

on a suite of performance reports which can be user 

configured to enable data analys is. 

Data s ystem operating at fixed ana lysis intervals 

(e.g. shift based, daily, weekly, monthly). Data entry 

automatic with energy consumption and other 

variables on 15 minute – 1 hour frequencies and 

production data on shift based or daily basis. W eb 

or intranet based with multiple users. Us ers can call 

on a suite of performance reports which can be user 

configured to enable data analysis. 

Real time data entry and analysis; 

Flexible data frequencies; 

Integration to SCADA or process control s ystems; 

Single site but can cascade upper level data for corporate 

reporting 

Automatic data entry and analysis; 

Flexible data frequencies; 


reporting 

Automatic data entry and analysis; 

Fixed analysis intervals 

Fixed data frequencies; 


reporting 


Part A

EMIS Level Outline description Qualifying features 

Data base s ystem operating at fixed analysis 

intervals (e.g. daily, weekly, monthly). Data entry 

either manual or automatic with daily consumptions 

or meter readings for utilities and other 

environmental variables and daily data for 

production. Stand-alone or Network based but 

requires specific software on users machines to 

access the data. Limited analysis and reporting 

capabilities – i.e. trending, specific energy ratios 

Spreadsheet or equivalent based s ystem relying on 

manual data entry. W eekly or monthly data 

frequencies. Stand alone s ystem used by system 

owner and reports shown to other stakeholders. 

Stand-alone or network bas ed 

Manual or automatic data entry (able to import standard 

data files from metering s ystems) 

Single site s ystem 

Stand-alone s ystem 

Manual data entry 

Single site s ystem 


Part A

� the level of metering and data capture s ystems the organization has at the 

outset; 

� W hether there is existing network infra structure in place to carry the data from 

the meters to the data historian; 

� If the s ystem is a single site or enterprise s ystem managing multiple sites; 

W ith the availability of grant funding, from Efficienc y NB and potentially other 

organizations, the overall costs of EMIS implementation are reduced, however the 

client organization will still have to invest capital and sometimes more importantly 

management time and other staff resources to gain the maximum benefit. In 

developing the functional specificati on the auditor should ensure that the proposed 

system is within the budgetary capability of the client organization given the 

expected level of benefits to the organization from EMIS implementation. 

5.2 Identifying Recommendations 

From the main gaps identified through the EMIS Audit and the functional definition 

for the s ystem, the auditor should identif y the main recommendations for change 

using the 6 main headings of: 

� Metering – W hat are the Energy Account centres identified for the site? W hat 

additional meters are required in order to measure the energy consumption for 

each Energy Account Centre? W hat are the approximate sizes of the fluid 

meters and what are the expected sizes of the electricity meters? For the 

meters what level of sophistication is require d for the primary measurement? 

� Data Capture – How will the data be transferred from the meters to the data 

historian? Is new network infrastructure required? 

� Data Analysis – W hat are the data analysis requirements for the EMIS? How 

frequently should analysis take place? 

� Reporting – W hat reports are required? W ho are the target audience for the 

reports and what are their specific needs for information? How are the reports 

to be communicated to the key stakeholders – on a “push” or “pull” basis? 

� Management Systems – W hat changes to the management systems are 

required in order that the organization can exploit the information that an EMIS 

will deliver? 

� Training, Aw areness and Communications – W hat management and employee 

development programs will be required for the organization to operate an EMIS? 

W hile in a conventional energy audit the auditor might be expected to identify both 

costs and benefits at a recommendation level, this will not be the case for an EMIS. 

The expectation is that approximate costs of each action will be identified; however 

the benefits should be estimated for EMIS implementation, which would comprise all 

the recommendations. 

The EMIS Audit is the first stage in a program of activities leading to implementation 

of the EMIS. If the Aud it is successful it will be followed by preparation of the 

implementation plan. This means that for the Audit stage, a detailed design of EMIS 

is not expected, this is work that would fall naturally in the EMIS Implementation 

planning stage, the level of detail required in the recommendations should be 

sufficient to: 

� Communicate the concept of EMIS to the client organization; 

� Identify the actions necessary to breach the gap between the current status of 

EMIS at the client and the appropriate level of EMIS for them. 

� Develop budget costing for the program. 


Part A

� Identifies any preconditions associated with each recommendation – i.e. what 

are the underlying requirements for the recommendation to be implemented. 

5.3 Prioritization 

As a precursor to the preparation of th e EMIS Implementation plan, it is 

recommended that the Auditor also provides guidance in the EMIS Audit report on 

the overall timescales necessary for the subsequent stages leading to EMIS 

Implementation. Detailed information is not required, the purpose of providing this 

information is mainly to manage the expectations of the client organization regarding 

the overall timescales necessary for EMIS implementation . 

Moving on from the timescales, it should equally be possible to provide an outline 

prioritization for the recommendations identifying for each the order in which they 

should be addressed, i.e. 0-4 mths, 4-8 mths, 8-12 mths, 12-18 mths, 18mths+. 

5.4 Savings Estimation 

Appendix 3 gives a technique for estimating savings using single or multiple 

regression techniques as the basis. The methodology for savings estimates is as 

follows: 

� Perform the linear regressions using data over three years if using monthly data 

or 1 year if using weekly data; 

� Generate the performance equation for the best fit line; 

� Calculate the predicted consumption from the performance equation; 

� Assume all positive variances (i.e. where actual consumption is in excess of the 

predicted consumption) can be eliminated through EMIS – in numerical terms 

this represents 50% of the current lev el of variation in energy performance ; 

� Compare sum of positive variances to total consumption over period and this 

becomes the initial estimate of savings potential expressed as % of current 

consumption. 

This gives a conservative estimate of savings and lo oks only at reducing operational 

variability, as was seen in section 2.4 this is only one of the ways in which EMIS 

implementation can reduce the energy consumption of a process or site, the other 

two methods being “s ystem operation improvements” and “equi pment improvements”. 

W hile equipment improvements relate to installation of new technologies to change 

the overall performance characteristics of the process, systems operations 

improvements are less evident. Typically systems operations improvements wil l 

result from: 

� Parameter changes – i.e. changing the operating set points of the processes; 

� Behavioral changes – i.e. changing the way people operate the equipment, for 

example reinforcing standard operational procedures for start up and shut 

down. 

� Maintenance changes – i.e. increasing the frequenc y of preventative 

maintenance on equipment to reduce wastage, for example compressed air 

leakage reduction, steam trap surveys. 

The savings estimation methodology does not necessarily address these forms of 

saving and if data analysis is the only methodology used, these savings will not be 

identified. 

When looking at the process and talking to the operators the EMIS Auditor should 

develop awareness of possible areas for systems operations improvements and to 

gain an impression of the likely potential for savings that these would lead to. This 

increased understanding can then be used to flex the savings estimate gained from 


Part A

data analysis. In any case, the principle of conservative savings estimation should 

be maintained. 

5.5 Cost Estimation 

The main concern regarding cost estimation is the level of accuracy expected. 

W hile it is in the nature of most auditors to want to determine the most accurate 

level of costs and savings possible, during the EMIS Audit it is unneces sary – at this 

stage in the process, estimating costs within a margin of error of +/ - 30% is 

sufficient to determine whether there is a strong enough case for the organization to 

proceed to the next stage - the “EMIS Implementation Plan”. 

This being the case, there is no need to approach potential vendors of metering, 

data capture or data analysis and reporting s ystems to obtain budget costs for 

implementation and the use of figures gained from past experience or general rules 

of thumb should be sufficient. 

The audit report asks for the costs associated with each recommendation and the 

Auditor should make their best estimation of where the costs will fall in the overall 

program. W e would advise the auditor to provide the savings estimation for the 

EMIS program as a whole and not to try to assign proportions of the overall savings 

to metering, data analysis, training and awareness etc as this may encourage the 

client to “cherry pick” and not commit to a full implementation. 


Part A

6 The EMIS Audit report 

The suggested contents of the EMIS Audit Report are as follows. These contents have 

been drawn from the Industry Program Incentive Details documentation available from 

Efficienc y New Brunswick. Like all programs, the EMIS Incentive scheme will evolve over 

time, the auditor should ensure when drafting their report that the scope and content 

continue to reflect the requirements of Efficienc y New Brunswick. 

The suggested contents comprise: 

1. An overview of the current situation with respect to energy management information 

as follows: 

Energy consumption: a summary of energy consumption by energy types, 

preliminary energy balances, costs and trends; 

Systems: An assessment of the existing metering and data capture s ystems in 

the plant as it relates to generating energy perfo rmance information useful for 

eventual management of the Energy Account Centres‟s (EACs); 

Data Analysis and reporting: An assessment of the data analysis and reporting 

systems in the facility for storing, analyzing and providing actionable information 

to relevant personnel in the facility for the purpose of managing and reporting on 

energy performance; 

Organizational capacity: An assessment of the current organizational capacity to 

manage energy either through existing or new management s ystems; 

2. A preliminary description of the recommended EMIS including where applicable: 

Purpose: A clear purpose statement and functional objectives of the EMIS 

Energy Account Centres : A preliminary design for Energy Account Centers that 

considers the energy consumption cent ers, cost accounting structure and 

organizational accountabilities; 

Metering & data capture: Hardware, Instrumentation, sub-meters, DCS/SCADA, 

data historian, networks & IT infrastructure etc. required to effectively measure 

performance at the EAC level, including energy and associated drivers of energy 

use; 

Data analysis & reporting: Data analysis, reporting, monitoring, optimization & 

decision support tools as well as s ystems -integration with existing IT systems, 

integration with existing management and reporting s ystems 

Management systems: Required changes to existing management systems, 

structures and/or accountabilities as wells as personnel training required for 

effective management of energy as a result of improvements to energy 

management information; 

3. An estimate of the preliminary cost and projected savings from implementation of the 

proposed EMIS including: 

Benefits: A description of the potential benefits of implementation of an EMIS or 

components of an EMIS including; 

� Direct energy savings that c an be achieved through reduced variability of 

energy usage, reduction in standing load, in waste and/or improved efficienc y; 

� specific low cost/no-cost Eligible Projects that can be implemented as a result 

of the proposed EMIS if applicable; 

Costs: An estim ate of the projected cost to install, maintain and operate the 

proposed EMIS. 


Part A

Project Management : A description of the approach, team and timeline for 

implementation of the proposed EMIS; 

4. Definition of scope for the EMIS Implementation Plan 

The cost to engineer the proposed EMIS to an investment decision grade level of 

report (EMIS Implementation Plan) that would substantially comply with the 

Efficienc y NB EMIS Implementation Plan Reporting Requirements, and which would 

be conducted in the spirit of the Implementation Plan described in the EMIS Audit 

Manual Part B – EMIS Implementation Planning. 

To assist the auditors to comply with the requirements, a report template has been 

created as is available from Efficienc y New Brunswick. 


Part A

7 Supporting Tools 

In order to support the EMIS Audit process and to facilitate the consistenc y of 

outputs sought by Efficienc y New Brunswick, supporting tools have been developed 

and are included within the resources available to service providers and customers. 

There are currently three main tools: 

� EMIS Audit Tool Spreadsheet . This spreadsheet contains five main 

worksheets, one generic sheet used to capture data about the site‟s or 

organizations energy consumption and to generate graphical representations of 

this information for u se in the audit report, three dedicated to the EMIS audit 

scoring and commentary and one summary table and graph. 

� Business Case Tool Spreadsheet . This spreadsheet is used to enter costs 

and benefits information for EMIS implementation and generates a disc ounted 

cash flow model of the project using financial criteria that can be customized for 

each site. 

� Report Template. A word template giving the main sections required in the 

audit report. 

The following sections provide instructions for use of each of the se tools. 

7.1 EMIS Audit Tool Spreadsheet 

This workbook consists of 5 worksheets: 

� Annual Energy 

� Metering and Data Capture 

� Data Analysis and Reporting 

� Mgmt Systems and Procs 

� Summary. 

7.1.1 Annual Energy 

This spreadsheet consists of one data entry table, a data output table and 2 

associated graphs. 

Table 7. The Data Entry Table 

Grid Electricity Select Units 

Natural Gas Select Units 

Fuel Oil Select Units 

Other Oil Select Units 

LPG Select Units 

Coal Select Units 

Other (Specify) Select Units 



Units Quantity 

Purchased 

Consumption 

Cost 

Demand or 

Capacity Cost 

Fixed Charges 

(excluding 

demand) 

Select Units Select Units Select Units 

Total 0 0 0 

Each utility source can be entered in a variety of units and the units used can be 

specific to the utility. The cost units are either CAD or 000‟s CAD. 

In column C you should enter the number of units purchased. 


Part A

In column D you should enter the annual cost for consumption in either CAD or 000‟s 

CAD as specified through the selection in cell E5. 

In column E you should enter the demand or capacity element of annual cost and in 

Column F you should enter any other fixed charges. 

If the site uses any other purchased fuels these can be entered in rows 12 -14. 

Table 8. A completed Data Entry Table 

Units Quantity 

Purchased 

Consumption 

Cost 

Demand or 

Capacity Cost 

Fixed Charges 

(excluding 

demand) 

CAD CAD CAD 

Grid Electricity kWh 85,000,000 5,100,000 3,825,000 12,000 

Natural Gas mmBTU 425,000 4,250,000 2,100,000 25,000 

Fuel Oil mmBTU 40,000 550,000 0 0 

Other Oil Select Units 

LPG Select Units 

Coal Select Units 




Total 9,900,000 5,925,000 37,000 

In cell C18 you need to select the reporting units, again any units can be used. The 

purpose of the reporting units is to allow direct comparison of the primary energy 

sources. This comparison is provided in the output table. 

Table 9. The output table using kWh as reporting units 

Consumption 

% of Total 

Consumption Total cost 

% of 

Total Cost 

kWh CAD Consumption Demand/Capacity Fixed 

Grid Electricity 85,000,000 38.4% 8,937,000 56.3% 57.1% 42.8% 0.1% 

Natural Gas 124,548,630 56.3% 6,375,000 40.2% 66.7% 32.9% 0.4% 

Fuel Oil 11,722,224 5.3% 550,000 3.5% 100.0% 0.0% 0.0% 

Other Oil 0 0.0% 0 0.0% 0.0% 0.0% 0.0% 

LPG 0 0.0% 0 0.0% 0.0% 0.0% 0.0% 

Coal 0 0.0% 0 0.0% 0.0% 0.0% 0.0% 

Other (Specify) 0 0.0% 0 0.0% 0.0% 0.0% 0.0% 

Other (Specify) 0 0.0% 0 0.0% 0.0% 0.0% 0.0% 

Other (Specify) 0 0.0% 0 0.0% 0.0% 0.0% 0.0% 

Total 221,270,854 100.0% 15,862,000 100.0% 62.4% 37.4% 0.2% 

Key functionality: 

of which 

� It is possible to change the data ranges used in the pie charts to eliminate fuel 

sources that are not used by the organization. Simply select the graph (i.e. 

click on it), the used data ranges will be shown in the output table. Click on the 

“handles” at the corner of the data ranges and drag the handle to include all of 

the data you want shown in the pie charts. 

� It is also possible to delete rows in the output table within the spreadsheet. 

7.1.2 Audit templates 

There are three worksheets which provide the audit templates described in section 

3.2 to 3.4. 

Each template consists of: 

� a scoring box where the possible scores are selected from a drop down list. 

Note that only integers can be selected. 


Part A

� Comments Boxes against each criteria where the findings of the audit can be 

summarized justifying the scoring chosen. 

These tables can be copied directly into the Report Template Appendix 1 (Note that 

prior to copying the tables it will be necessary to hide the column containing the 

Description). 

Figure 23. Example template – pasted into this document 

Key Energy Account Centres (EACs) identified 

Utility submetering coverage on EACs 

Meter types appropriate for function 

Meter installation satisfactory 

Meter accuracy/repeatability understood 

7.1.3 Summary 

Characteristic Score 

Total Score 0 

Actual Max 

10 

10 

10 

5 

5 

out of a maximum of 40 

Auditors Notes/Comment 

The Summary spreadsheet collects the scores from eac h of the Audit templates and 

presents the data in a single summary table and chart. Both the Summary Table and 

chart can be copied into the Report Template. 

Figure 24. The Summary table 

Score Max % 

Metering and Data Capture 

Utility Meters 36 40 90% 

Utility Drivers 17 30 57% 

Data Capture and Storage 24 40 60% 

Subtotal 

Data Analysis and Reporting 

77 110 70% 

Data Analysis 26 35 74% 

Target Setting 20 35 57% 

Utility Reporting 21 30 70% 

System Support Skills 19 30 63% 

Subtotal 

Management Systems and Procedures 

67 130 52% 

Organisational Structure 13 30 43% 

Management Procedures 15 35 43% 

Communications 13 25 52% 

Procurement and Investment 15 20 75% 

Subtotal 56 110 51% 

TOTAL 200 350 57% 

NB - W hen copying from Excel to W ord, it is possible and recommended to “Paste 

Special” and use the format of Picture (W indows Metafile). Although this prevents 

automatic updating it does minimize the eventual file size. 


Part A

7.2 The EMIS Business Case Tool 

The EMIS Business Case Tool is used to create a simplified business case for EMIS 

implementation and can be used at the audit stage for estimating the probable costs 

and benefits from EMIS. The Business Case tool can be updated in the 

Implementation Plan stage when the plan costs and timescales are known. 

This spreadsheet uses macros to facilitate the copying of data between sheets and 

the creation of the Summary table and graphs. For full functionality to be available 

it is necessary to enable macros on opening the spreadsheet. 

The EMIS Business Case Tool has four visible spreadsheets a nd one graph: 

� “Analysis Assumptions” is used to enter the overall assumptions used for the 

analysis, i.e. energy spend, cost inflation, estimated savings potential (from the 

regression analysis) and the chosen discounted cash rate. 

� “EMIS Costs” is used to enter the costs for EMIS implementation – the costs 

include software and support for implementing the EMIS. 

� “Other Costs and Savings” is used to enter any other identifiable costs or 

benefits from EMIS implementation, e.g. metering and data infrastructure costs, 

productivity gains, etc. 

� “Summary” will present the information entered from a cash flow perspective 

over 3, 4 or 5 years. 

� Cash Chart shows the overall cash flow position. 

7.2.1 Analysis Assumptions 

Client Name 

Test Client 

Annual Utility Spend 5,000,000 

Currency $ 

Annual Utility Cost/Use Inflation 4.00% 

Annual Cost Inflation 4.00% 

Target % Saving from EMIS 4.50% 

Start Month for EMIS Savings Mth 06 

Full Savings Rate Achieved Mth 10 

Evaluation period 36 months 

Discounted Cash Flow Rate 7.00% 

� Client Name – The name of the client or organization. This is used only in the 

Summary table to provide a title for the Cash Flow calculation. 

� The Annual Utility Spend is the current spend on primary energy. 

� Currenc y is $ (Canadian Dollars) 

� Annual Utility Cost/Use inflation. This is the percentage annual in crease in 

utility spend on a business as usual basis, this increase could be due to 


Part A

increases in unit costs or increases in consumption. The cash value of the 

savings will be calculated on the basis of the expected annual utility cost in 

each year. 

� Annual Cost inflation. This is the percentage annual increase in other costs 

expected over the period of the analysis. This value is applied to the “EMIS 

Costs” and “Other Costs and Savings”. 

� Target % Saving from EMIS. This is the percentage of Annual utility costs that 

implementation of EMIS is expected to save. At the Audit stage this should be 

the value of the savings derived from the regressions divided by the total 

annual utility spend. 

� Start Month for EMIS Savings. This is the first month in the impleme ntation 

program where savings from EMIS can be forecast. Typically there is a lead 

time between kicking off an EMIS implementation and savings filtering through. 

� Full Savings rate achieved. This is the month where the savings are expected 

to achieve the forecast potential. In between the start month and the Full 

savings achieved month the savings percentage is subject to linear interpolation 

between 0% and the Target % savings. 

� The Evaluation period is the timescale for the cash flow calculation and is 2 4, 

36, 48 or 60 months. 

� The Discounted Cash Flow Rate is the cost of capital to the organization. 

7.2.2 EMIS Costs 

Figure 25. EMIS Costs Entry 

Fee Rates 

Mandays 

Software Install, Configuration and Training 

EMIS Setup, Training and Target-setting 

Ongoing Management Support 

Software 

Currency $ 

EMIS Implementation Costs 

Software Support /day 

Technical Support /day 

Other Support /day 

Project Management % 

Expenses % 

Software Tech Other St Month End Month 

Total 0 0 0 

Software License => Invoice Month 

Annual Maintenance and Support => Invoice Month 

(and every 12th mth thereafter) 

This sheet is used to estimate the core costs of EMIS implementation. The core 

costs are: 

� EMIS software; 

� Set up and configuration costs for the software; 

� Management support costs during EMIS implementation. 


Part A

The cost estimation method is based on fee days and three types of skills are 

included: Software, Technical and Other. Three phases of implementation are also 

considered: Software install, EMIS setup, configuration and training and ongoing 

management support. The data to be entered into this sheet is: 

� Fee rates for each of the three types of skills 

� Man-days required in each of the three phases for each of the three types of 

skills sets; 

� The start and end months for each of the three phases; 

� Percentage costs for project management and expenses; 

� Software license and annual support costs and the invoicing months for each of 

these costs. 

Figure 26. Completed EMIS Costs Entry 

Fee Rates 

Mandays 

Currency $ 

EMIS Implementation Costs 

Software Support 500 /day 

Technical Support 600 /day 

Other Support 700 /day 

Software Tech Other St Month End Month 

Software Install, Configuration and Training 4 5 6 Mth 01 Mth 04 

EMIS Setup, Training and Target-setting 10 4 2 Mth 05 Mth 07 

Ongoing Management Support 0 10 10 Mth 08 Mth 18 

Software 

Total 14 19 18 

Project Management % 7.0% 

Expenses % 5.0% 

Software License 25,000 => Invoice Month Mth 03 

Annual Maintenance and Support 5,000 => Invoice Month Mth 12 

(and every 12th mth thereafter) 

7.2.3 Other Costs and Savings 

This sheet is used to enter any other identifiable costs or savings from EMIS 

implementation. 

Costs or Benefits entered may be “one off” or “recurring”: 

� If the cost or benefit is “One -off” then it will be allocated in full to the month 

defined in the Start Month. 

� If the cost or benefit is “Recurring” then it will be applied to all months from the 

Start month to the End month. If no end month is entered is will apply from the 

Start month onwards. 

� Note that both costs and benefits are entered as p ositive numbers. 

Key Functionality 

� To add a line item cost or benefit, click on the Add Row Button. 

� To delete the last item entered, click on the Delete Last Item button. 


Part A

� To delete all rows, click on the Reset Sheet button. 

Figure 27. Other Costs and Savings 

Currency = $ 

Item Number Description Cost / Benefit Value Type Start Month End Month 

7.2.4 Summary 

Other Costs and Savings 

Add Row Delete Last Item Reset Sheet 

1 Metering yr 1 Cost 90,000 One-Off Mth 03 

2 Metering yr 2 Cost 100,000 One-Off Mth 14 

3 Management training Cost 10,000 One-Off Mth 08 

4 Productivity Gains Benefit 2,000 Recurring Mth 12 

The Summary spreadsheet presents the cash flow calculation from the data entered. 

In its initial form it does not include any of the Other Costs and Benefits. For these 

to be included in the table it is necessary to click on the Recalculate Button. 

If you want to do sensitivity analysis, it is possible to change some of the initial 

assumptions or the timing of the costs and benefits and then click on Recalculate to 

see the impact on the Nett Present Value of the project. 


Part A

Figure 28. Cash Flow for data entered. 

Business Case for Test Client 

© Efficiency NB 2008, all rights reserved, E&OE 

Summary of estimated benefits over evaluation period Values Used 

EMIS Benefits 

ResetAll 

$ Notes 

Net Incremental Cash Flow Benefit: 337,633 Annual Site Energy Costs: 5,000,000 (a) 

NPV 275,600 Currency Symbol: $ (b) 

Discounted cash flow rate: 7.0% (c) 

Simple ROI: 151% Cost Inflation: 4.0% (d) 

Utility Cost/Use Inflation: 4.0% (e) 

Full Year Savings: 4.5% (f) 

Evaluation period length: 36 months Year One Savings: 1.7% (g) 

Year 1 Year 2 Year 3 Total 

Estimated utility and resource savings 84,375 234,000 243,360 561,735 (h) 

Total Benefits/Gains 84,375 234,000 243,360 561,735 

EMIS Investment 

EMIS Investment 

Software License (25,000) 0 0 (25,000) (k) 

Software Install, Configuration and Training (8,500) 0 0 (8,500) (k) 

EMIS Setup, Training and Target-setting (9,200) 0 0 (9,200) (l) 

Ongoing Management Support (5,000) (6,240) 0 (11,240) (l) 

Project Management (1,589) (437) 0 (2,026) (l) 

On-going Support and Maintenance 0 

Software Annual Maintenance and Support (5,000) (5,200) (5,408) (15,608) (o) 

Expenses 0 

Travel and subsistence estimate (1,135) (312) 0 (1,447) (p) 

EMIS and Projects Investment (55,424) (12,189) (5,408) (73,021) 

Other Costs and Savings 

Metering yr 1 (90,000) 0 0 (90,000) 

Metering yr 2 0 (104,000) 0 (104,000) 

Management training (10,000) 0 0 (10,000) 

Productivity Gains 2,000 24,960 25,958 52,918 

Total (98,000) (79,040) 25,958 (151,082) 

CASH/BENEFIT SUMMARY 

7.2.5 Cash Chart 

Recalculate 

Benefit impacts 84,375 234,000 243,360 561,735 

EMIS and Projects Investment (55,424) (12,189) (5,408) (73,021) 

Other Costs and Savings (98,000) (79,040) 25,958 (151,082) 

Net operating inflow (outflow) (69,049) 142,771 263,910 337,633 

NET CASH FLOW (69,049) 142,771 263,910 337,633 A_Net_CF 

Discounted Cash Flow at 7% (64,532) 124,702 215,429 275,600 

200 200 

0 0 

The Cash Chart shows the net cash flows for the project and shows the maximum 

cash requirement in order to fund the project. 

7.3 Report Template 

The report template is a W ord document that sets out the suggested structure of the 

EMIS Audit report. Th e report consists of five main sections: 


Part A 

1 1 

0 

A_DCF

� Section 1 - Executive Summary. This should be a summary of the estimated 

business case for EMIS implementation; 

� Section 2 – Introduction. This gives the utility consumption and costs for the 

organization; the summ ary EMIS Assessment scoring; the agreed defined 

purpose of EMIS; the functional definition of EMIS and the estimated benefits. 

� Section 3 – Recommendations. This presents the recommendations in six key 

areas: 

o Metering 

o Data Capture 

o Data Analysis 

o Reporting 

o Management Systems and Procedures 

o Training, communication and awareness raising. 

� Section 4 – The Business Case. The financial business case for EMIS 

implementation. 

� Section 5 – Next Steps. This should be effectively a proposal for the work that 

needs to be done to arrive at an EMIS Implementation Plan. 

The EMIS Audit report is intended to be action oriented and should focus on the key 

changes required and the associated costs and benefits. 

The Appendix for the audit report can be used to provide the EMIS A udit scoring 

sheets and any other information that is considered essential to understanding of the 

EMIS audit report. 

Note that the report template includes a disclaimer notice, the inclusion of this 

disclaimer notice is mandatory. 


Part A

APPENDICES 

1- EMIS RFP Template and Evaluation Matrix 

2- Data Request Template 

3- Assessment Criteria and Scoring 

4- Data Analysis and Savings Estimation 


Part A

A1 EMIS Request for Proposals Template 

Energy Management Information System (EMIS) Audit 

Guide for a Request for Proposal (RFP) 

Notice: This document provides generic inform ation for the basic content of an EMIS Audit RFP. 

It is the responsibility of the industry to develop a procurement document and proposal 

requirements that meet its own unique circumstances and requirements. As su ch Efficiency NB 

accepts no responsibility for any liability that m ay result as a result of the use or application of 

this information. 

SECTION 1 – PURPOSE and BACKGROUND 

1. Purpose 

This document is intended to provide guidance to Industry Program participan ts in 

preparing a request for proposals (RFP) for potential service provider (s) to conduct an 

EMIS Audit. 

2. Background 

What is an EMIS Audit? 

An EMIS Audit is intended to provide a preliminary assessment of the potential scope, 

cost and benefits from impl ementation of an EMIS. Provided that the EMIS Audit 

indicates attractive cost effective potential for saving energy costs, then an Industry can 

engage in a more detailed analysis and preliminary design, called an EMIS 

Implementation Plan, which would provide investment grade level information following 

from the results of the initial EMIS Audit. 

The EMIS audit aims to determine in a preliminary sense, what the approximate costs and 

benefits would be if implementing a new EMIS, or of enhancing an existing E MIS. 

An EMIS Audit activities include the following (more information is available in the 

Efficienc y NB EMIS Audit Manual – Part A): 

� A facilitated session with management and stakeholders in the facility to agree on 

the “purpose” of the system and the int ended benefits; 

� Preliminary design of “energy account centers” (“EAC‟s) which represent 

substantial consumption centers over which performance accountability can be 

assigned to specific individuals within the organization; 

� Assessment of the existing state of the following elements as they relate to the 

management of energy by the organization and specific individuals under a 

potential EAC scheme: 

o Metering and Data Capture; 

o Data Analysis and Reporting; 

o Management Systems and Procedures. 


Part A

The purpose of the EMIS Audit is to communicate the preliminary scope and business 

case for further investment in EMIS. The effectiveness of an EMIS Audit is predicated on 

generating a useful comprehensive assessment of the gaps of the specific facility and 

organization relative to proper energy management via an EMIS and specific scope and 

cost of a s ystem that could close those gaps as well as the financial value to the 

organization of implementing the EMIS. The financial return from investing in EMIS must 

be clearly be made. 

An Energy Management Information System should sit at the core of all energy 

management programs and its purpose is to deliver robust energy performance data, 

information and analysis to support the decision making processes of the management 

program. 

W ith an EMIS located within an energy management program, it is equally important that 

the organization have the management s ystems and procedures in place to translate 

energy management information into action to optimize energy performance and eli minate 

waste. 

SECTION 2 – ELEMENTS of an EMIS RFP 

The following sections should be included in the EMIS Request for Proposal 

1 Instructions to Bidders 

Provide potential bidders with a set of instructions for submitting their bids. In addition to 

the set of instructions ask for any information that you believe will assist you in the bid 

selection process. A suggested list of items that should be provided to bidders is as 

instructions are as follows: 

� W hether costing should be submitted as part of a singl e bid package, or 

whether the financial proposal should be submitted separately. 

� The required currenc y, to perform the audit; 

� The estimated timeframe that the audit should be completed within; 

� The likely elapsed time between acceptance of bid and start of audit; 

� The closing date for the bid with instructions on how to submit the bid i.e. 

email address; 

� A closing date for intent to bid. A one line statement is sufficient. 

This section should also include any requirements concerning the following items: 

� Format of the final report; 

� Language of the final report; 

� Number of copies final report; 

� Oral presentation of the results –Timing and audience; 

� Confidentiality / Disclosure of the final report; 


Part A

3 Description of Operation. 

This section should include the fol lowing: 

� Site address 

� The area the site covers 

� Site layout drawings & floor area 

� A brief description of the production process and hours of operation 

� Schematics of processes and energy and utility distribution s ystems 

� List of products manufactured at site 

� Types of fuels utilized for production and estimated yearly consumption for 

each type 

� The Local Distribution Companies (LDCs) that service site 

� The rate schedules 

4 An Overview of the Existing Systems 

An overview of the systems presently in place at your site will assist the bidders in 

assessing how much time and effort are required to conduct the audit. The following 

information, which can be collected by in -house personnel, should be included in the RFP: 

� The architecture , performance and functionality of the: 

o Energy management, environmental management or quality s ystems 

in place (six sigma, ISO, TPM etc) , if one exists; 

o Business information systems; 

o Plant information s ystems; 

o Controls and automation s ystems; 

o Metering and Sub-metering s ystems 

o Emission trading requirements/s ystems 

o Regulatory requirements and management s ystems. 

� Names and version numbers , licensing requirements if applicable, of the 

software suites installed in s ystems listed reviewed; 

� Any problems, limitations and deficiencies with the above s ystems. 

3 The goals of the Audit 

Use this section to describe to the bidders what the goals of the audit are. 

The goals of an EMIS audit can be numerous, and need to be developed following 

thoughtful deliberation at the plant. Generally they may inc lude things such as : 


Part A

� To determine if the existing energy information s ystem has the functional 

capability to support the facility‟s goals and objectives, and 

� To determine how the existing s ystem has to be modified or upgraded to 

meet the facility‟s goals and objectives, or 

� To determine the specifications of a new EMIS that would have to be 

installed to meet the facility‟s goals and objectives 

Define your own goals and give a date or a range of dates for conducting the audit and 

producing the desired resul ts. 

4 Audit Scope 

The audit scope is used to inform the bidders of the physical boundaries of the 

proposed audit. The audit can be performed on the whole facility or a specific 

production line, department, or s ystem. State which of the above is applica ble. 

5 Audit Deliverables 

The audit deliverables can be viewed as the tangible results of the auditing process. 

To ensure funding eligibility under Efficiency NB’s EMIS Audit Incentive, these 

results should lead to a report that is substantially in co mpliance with Efficiency 

NBs EMIS Audit Report Requirements as presented in Annex B “Incentive Details” of 

the Efficiency NB Participation Agreement. 

A reference to Efficiency NB’s EMIS Audit Report Requirements is a mandatory 

requirement of an approved EM IS Audit Proposal. As such, proponents proposals 

shoud include a statement such as: 

“The EMIS Audit Report resulting from the proposed EMIS Audit will be in 

compliance with Efficiency NB’s EMIS Audit Report Requirements” 

The audit should produce at a minimum: 

� A list of EMIS opportunities; 

� A brief description of the EMIS upgrade required or if, a new s ystem is 

proposed, the components of the new s ystem; 

� Development of Energy Account Centres (EACs). 

� A Description of the non-financial benefits of EMIS; 

� Estimates of energy savings, with accuracies and confidence levels suitable 

for feasibility study evaluation; 

� An estimate of the EMIS solution project cost, with an accurac y and 

confidence level suitable for feasibility study evaluation 

� A list of potential training requirements; 


Part A

6 Bidder Qualifications 

The RFP should clearly request that bidders elaborate their experience in undertaking 

EMIS audits and of implementing EMIS projects and should include: 

� The bidder‟s experience/track record in providing servic es of this nature; 

� The qualifications of the proposed members of the bidder‟s auditing team; 

3. Proposal Evaluation 

It is often helpful to inform bidders how their responses will be score. An Excel scoring 

tool is available through Efficienc y NB to provide suggestions for a possible scoring 

system. An excerpt of this tool is included below for illustration. 


Part A

A1 EMIS Evaluation template 

Notice: This document provides a generic template to facilitate scoring the content of an EMIS Audit RFP. It is the responsibility of the industry to modify the template below 

to develop its own scoring categories and weightings to meet its unique circumstances and requirements. As such Efficiency NB accepts no responsibility for any liability that 

may result as a result of the use or application of this information. 

RFP Evaluation Criteria 

EMIS AUDIT 

Max Score 

(indicates 

relative 

importance) 

Section 

Importance 

(%) 

Proponent 1 Proponent 2 Proponent 3 Proponent 4 

Section 1 - Understanding Scope 25 25 25 25 25 

Proponent clearly understands what EMIS 

is 10 10 10 10 10 

Will the EMIS have clear functional 

objectives? 10 10 10 10 10 

Will the EMIS audit be tailored to various 

levels in the plant? Operator level? Energy 

champion level? Plant management level? 10 10 10 10 10 

Proponent offers value-added options for 

consideration 5 5 5 5 5 

Section 2 -Methodology & Schedule 35 35 35 35 35 

Proposed methodology is clear and logical 5 5 5 5 5 

EMIS Audit will include descriptions of 

existing instrumentation for High Energy 

Users and describe recommended 

upgraded components 10 10 10 10 10 

Issue 

Score 


Part A 

Total 

Score 

Issue 

Score 

Total 

Score 

Issue 

Score 

Total 

Score 

Issue 

Score 

Total 

Score


Max Score 

(indicates 

relative 

importance) 

Section 

Importance 

(%) 


EMIS Audit will include descriptions of 

existing information software and describe 

recommended software additions 10 10 10 10 10 

EMIS Audit will describe integration into 

existing plant information system 10 10 10 10 10 

EMIS audit will identify any training 

requirements of staff 10 10 10 10 10 

Will the EMIS audit identify capital 

investment opportunities? And include a 

payback of EMIS? 10 10 10 10 10 

Does the EMIS audit approach include 

identifying High Energy Users and 

Processes? 10 10 10 10 10 

Will the EMIS audit have a strategy for 

monitoring energy with respect to 

production? I.e various product grades, 

production speeds (including plant 

shutdown) 15 15 15 15 15 

Timing and availability of the work is 

appropriate 10 10 10 10 10 

Issue 

Score 


Part A 

Total 

Score 

Issue 

Score 

Total 

Score 

Issue 

Score 

Total 

Score 

Issue 

Score 

Total 

Score

Section 3 - Project Management 10 10 10 10 10 

Quality Control approach is presented and 

clear 5 5 5 5 5 

Cost Control approach is presented and 

clear 5 5 5 5 5 

Schedule Control approach is presented 

and clear 5 5 5 5 5 

Client liaison and project team structure 

and roles are clear 10 10 10 10 10 


Part A


Max Score 

(indicates 

relative 

importance) 

Section 

Importance 

(%) 


Section 4 - Corporate and Staff Experience & 

References 30 30 30 30 30 

Proposal clearly demonstrates process 

knowledge and related experience 10 10 10 10 10 

Proposal clearly demonstrates energy 

efficiency knowledge and related 

experience 10 10 10 10 10 

Does the Proponent have a dedicated 

business unit or dedicated staff for energy 

efficiency? 10 10 10 10 10 

Does the EMIS audit staff have an 

industrial depth of knowledge? 10 10 10 10 10 

Can the EMIS audit staff resource 

knowledge from other industry sector 

groups within the company? 10 10 10 10 10 

Does the staff/firm have experience in the 

specific facility processes? 10 10 10 10 10 

Does the staff have experience in electrical 

system design? 10 10 10 10 10 

Does the staff have experience in project 

management? 10 10 10 10 10 

Does the staff have experience in energy 

management? 10 10 10 10 10 

References are provided and are 

satisfactory 10 10 10 10 10 

Issue 

Score 


Part A 

Total 

Score 

Issue 

Score 

Total 

Score 

Issue 

Score 

Total 

Score 

Issue 

Score 

Total 

Score


Max Score 

(indicates 

relative 

importance) 

Section 

Importance 

(%) 


Total Score 100 100 100 100 100 

Issue 

Score 


Part A 

Total 

Score 

Issue 

Score 

Total 

Score 

Issue 

Score 

Total 

Score 

Issue 

Score 

Total 

Score 


Total Score EMIS Audit 100% 100% 100% 100% 

Pricing EMIS AUDIT 

Summary of major advantages 

1) 

2) 

3) 

Summary of major disadvantages 

1) 

2) 

3)

A2 Data Request template 

Client/Site Details: 

Company Name 

Site Address 

Telephone (General) 

Primary Contact Name 

Primary Contact Telephone 

Number 

Primary Contact E-mail Address 

Background to this Request 

Pre EMIS Audit– Data Request 

This document outlines the sorts of data and/or information that will be required 

during the course of the EMIS Audit. If the data is provided prior to the study it has 

a greater value since it allows some preliminary analysis prior to the site work. 

Your EMIS Auditor 

The EMIS Auditor who will be: 

Name 

Position 

Telephone (office) 

Telephone (mobile) 

Email address 

Please contact your EMIS Auditor if there is anything in this document that requires greater 

clarification or if there is any information that you are unable to provide. 

General Site Information 

� Site layout drawing (A4 or A3 is fine) 

� Any process schematics available 

� Gas, electricity, water , compressed air distribution drawings (if available) as 

either schematics or layouts 

� Site floor area (and volume if available) 

� No employees 

� Operating hours, by shift, daily, weekly, monthly, annual 


Part A

� Brief details of principal products manufactured 

Typical data requirements: 

W here data is provided it is preferable to have it in a spreadsheet format, or any 

other format that can be imported directly into a spreadsheet. 

� Utility Consumption and Costs: 

o Monthly / W eekly consumptions and costs for all utilities (electricity, gas, 

oil, water, effluent) ideally for a period of three years. 

o Information regarding the tariffs applying to utilities (Standing charges, 

unit charges, tariff periods, taxes, etc) 

o Demand profiles if available for electricity showing typical summer, 

winter weekday and weekend electricity demand. 

� Sub-meter Information. 

o Sub-metered consumption data. Depending on the frequenc y of the data 

– if monthly then 3 years, if weekly then one year. This is to give us 

sufficient data points to allow regression analysis with a degree of 

confidence. 

� Production Data: 

o Monthly / W eekly production rates (either tonnes manufactured, sales 

tonnes, sales units, raw materials inputs, etc) of key product groups. 

Ideally over the same period / frequenc y as the sub meter data. 

� Management Information 

Utility Systems 

o Details of any production or environmental management processes in 

place, e.g. Six Sigma, TPM, TQM, ISO14001, etc. 

o Details of any environmental legislation pertinent to the site at a Federal, 

State or Municipal level and impact on site. 

System Present # of Systems Total System 

capacity 

Boilers / Steam 

Generation 

Refrigeration/ Chilled 

Water Generation 

Compressors / 

Compressed Air 

Generation 

Combined heat and 

Power systems 

� Yes � No 





Part A

A3 Assessment Criteria and Scoring 

Metering 

Key Energy Account Centres (EACs) identified (Score 0 -10) 

Identification of Energy Account Centres is the means by which energy 

consumption within a site or facility is divided. E nergy Account Centre‟s (EAC‟s) 

should at a minimum match the accounting cost centres for a facility to allow the 

management to treat energy as any other input cost for that centre. In more 

complex production processes the use of accounting cost centres ma y not lead to 

a sufficiently discrete separation of energy consumptions and costs thus there may 

be a need for multiple EACs within each ACC. In these circumstances EACs can 

be individual production areas, whole production lines or, if the energy 

consumption is significant, an individual unit operation such as a drier or furnace. 

One important consideration is that all of the production equipment within the EAC 

should fall under the responsibility of one operation or production manager so that 

they can be held accountable for the performance of that EAC. A single operations 

or production manager may have responsibility for multiple EACs. 

Another aspect is that the EAC is the level at which targets for performance are or 

should be set and managed. 

Score Qualif ying performance 

10 The site or facility has been split into EACs which are of an appropriate 

scale and scope for the operations or process of the site. 

7 In the majority of cases EACs have been set at an appropriate level but 

further EACs are required to provide a sufficiently discrete view to set 

targets and manage performance. 

5 EACs are set at an Accounting Cost Centre level but this level is not 

sufficiently discrete to either set appropriate targets or manage 

performance. 

3 EACs are defined at a Departmental level. 

0 No EACs have been identified 


Part A

Utility sub metering coverage on EACs (Score 0-10) 

Once the optimal Energy Account Centres have been defined, the next stage in an 

Energy Management Information System is to ensure that all util ity flows into the 

Energy Account Centre are measured. Remember to include both primary utilities 

- electricity, natural gas, oil etc - and secondary utilities such as compressed air 

where relevant. These measurement devices are referred to as sub -meters to 

draw the distinction between them and the fiscal meters used to measure the 

primary utility flows to the site. 

The sub-metering should cover the highest amount of energy possible within each 

of the EAC‟s. This will allow for the most accurate overall r epresentation of energy 

usage. Sub-meters should not be considered where the financial value of the 

energy flow is insufficient to provide the justification for the meter installation. 

In order to calculate this coverage, the following data needs to be de termined for 

each EAC: 

� Overall weighting of energy for each EAC. This is subjective and the sum 

of the weighting should total 100%. These have been tagged below as 

Weighted % 

� Approximate percentage of the amount of energy being monitored for 

each EAC. Thes e have been tagged below as Measured %. 

Assessments can be made based on the following factors: 

� Nameplate energy ratings on equipment throughout the facility 

� Relative size of piping going into a EAC which is measured vs. not 

measured 

Overall Utility Sub metering Coverage (%) = 

SUM [(EAC1 W eighted %) x (EAC1 Measured %) + (EAC2 W eighted % x EAC 2 

Measured %) + … + (EAC N W eighted %) x (EAC N Measured %)] 


0 - 10 The scoring is based on the overall % of sub metering coverage in 

increments of 1. W here 0% coverage receives a score of 0, and 100% 

coverage receives a score of 10. 

E.g. A coverage of 70% - 79% would receive a score of 7. 

Meter types appropriate for function (Score 0 -10) 

All meters should be fit for purpose – i.e. capable of reading the expected range of 

energy flows to a sufficient level of accurac y across the flow range. This criterion 

concerns the selection of meter types and asks the auditor to consider whether 

they are appropriate for the function. 

Primary considerations for appropriate meter function are: 

� Rangeability. Calculated by taking the ratio of the meter maximum flow 

rate to the process low flow rate. Consider the range of flow the meter 

is capable of metering. Different meter elements will have diff erent flow 

ranges which are a function of the physical characteristics – e.g. orifice 

plates generally have low rangeabilities due to the relationship between 

flow and pressure drop (a square law) – this mean that a 4:1 turndown at 

the orifice plate equates to a 16:1 turndown at the differential pressure 


Part A

transducer. 

� Appropriate measurement. Inherent characteristic of any meter will 

measure volume (velocity), mass or energy rates. Consider for example 

if meter measures mass rate if this is the required par ameter for 

reporting. 

� Process conditions. Consider if the meter is appropriate for the process 

temperature and pressure. Hot water may for example flash into steam 

because of meter pressure drop, equally if the meter is measuring steam 

or gas, is pressure and temperature compensation necessary. 


10 All sub-meters have been selected with due regard to the range of 

energy flows expected and are appropriate for measurement and 

process conditions. 

7 The majority of the sub meters have been selected with due regard to 

the range of energy flows expected and are appropriate for 

measurement and process conditions. Some meters will need 

replacement. 

3 A minority of the sub meters have been selected with due regard to the 

range of energy flows expected however the majority will need 

replacement. 

0 Meters not functional and/or meter reading suspect 

Meter installation satisfactory (Score 0 -5) 

The long term viability of the metering s ystem is contingent on correct installation 

and therefore the ability to maintain these systems. Meters that are harder to 

maintain will not be inspected or calibrated on a regular scheduled basis. 

Indicators of a satisfactory installation will include the presence of calibration 

records and evidence of regular recalibration. Other things to consider include: 

� Metering s ystems are eas y to maintain and calibrate. Factors are: the 

meter can easily be taken out of service for inspection, the meter is 

accessible and any transmitters can be isolated from the process for 

calibration. 

� Mechanical installation is correct. Key points are: meter aligned with 

piping, manufacturer‟s recommendations are followed and any external 

tubing (impulse) is as short as possible. For example, steam orifice 

meters require a level head of water to be maintained in the transmitter 

tubing. Refer to manufacturers O&M manuals for information on specific 

meters. 

� Upstream and downstream piping is appropriate for the meter. Typically 

process meters require straight pipe (no elbows or restrictions) upstream 

and down-stream of the meter. This is measured in terms of 

pipe diameters. Upstream typical values are 10 to 15 pipe diameters 

and downstream value is 5 to 10 diameters of straight pipe. 

Score based on inspection and site operations feedback. 

Most meter manufacturers have detailed resources available on their websites to 

assist users in selecting and installing their equipment correctly. 


Part A


5 All metering s ystems are installed correctly and ca n easily be inspected 

/calibrated 

4 Only some of the meters have issues related to installation 

2 At least ½ of the meters have issues related to installation 

0 More that ¾ of meters not functional and/or not installed correctly 

Meter accuracy/repeatability understood (Score 0 -5) 

Accurac y and repeatability considerations are: 

� Age of the metering systems. Periodic inspection of metering systems is 

recommended by manufactures. Consider if the meter has been 

maintained or calibrated. Steam may erode the edges of any orifice 

plate causing inaccurate differential pressure readings for example. 

Calibrations are required for pressure, temperature and differential 

pressure transmitters. Pressure and temperature compensation also 

needs to be considered in most applications. 

� External fixed factors are sometimes used in meter or receiving 

equipment that can impact measurement totals. Factors may not be 

appropriate or not updated frequently. Process conditions may have 

changed since the system was commissio ned. Examples might be 

converting natural gas from actual (uncorrected) conditions to standard 

conditions using fixed pressure and temperatures. Standard conditions 

are required to reconcile against billing volumes and to convert volume 

to energy. Another common error often found is incorrect ratios used for 

current transformers in electrical measurement. 

� Meter type may not be appropriate for process fluid. Dirty or viscous 

fluids have an impact on the accurac y of the metering. 

Score each meter with on e point for each item above. Average based on total 

number of meters. 


10 The metering s ystems are maintained and/or calibrated, external factors 

are appropriate and fluids appropriate for meter type. 

1-9 Score based on calculated percentage 

0 Metering s ystems not maintained, management or operations do not 

trust results. 


Part A


Key drivers identified (Score 0-5) 

There are three main types of „utility driver‟, i.e. factors that influence the energy 

performance of an EAC: 

� Production – e.g. production levels and production mix 

� Environmental – e.g. ambient temperature, humidity 

� Operational – control temperatures and pressures 

For each EAC, the relevant utility driver(s) need to be identified, by relevant those 

which have the greatest impact on the energy performance of the account centre. 

For each EAC, a list of all possible utility drivers created, which is subsequently 

reduced through discussion with the site staff to isolate those which have the 

greatest impact on energy performance. 

The scoring for this section is a subjective % based on how well the driver‟s listed 

account for all variables that can affect energy consumption. 


0-10 The scoring is based on the overall % of driver‟ s that have been listed 

for each EAC. W here 0% coverage receives a score of 0, and 100% 

coverage receives a score of 10. 

E.g. A coverage of 70% - 79% would receive a score of 7. 

Driver Measurement appropriate to function (Score 0 -5) 

In the same way that energy meters need to be both selected and installed 

correctly bearing in mind the type of energy flow being measured and the physical 

qualities of the energy flow, so the measurement and sensors for measuring utility 

drivers must equally be chosen and in stalled correctly. 

Particular issues specific to driver measurement relate to the measurement of 

variable absolute values such as temperature, pressure and relative humidity and 

the period over which these absolute values are either sampled or averaged in 

order to arrive at a measure of the driver. 

This score determines not only whether the facility has determined how to measure 

the drivers, but also ensures that the measurements have been correlated to the 

energy consumption for each EAC. 

If drivers have not yet been defined for each EAC, regardless of if measurements 

are being taken, the score should be 0. 



Part A

10 Drivers have been identified, measurements have been defined in order 

to monitor the drivers, and these correlate to the energy consumption of 

the EAC. 

7 Drivers have been identified, measurements have been partially or fully 

defined, but there is no correlation between a change in the given 

measurement and the energy consumption of each EAC. 

4 Drivers have been ident ified for each EAC, but specific measurements 

have not been defined for each driver. 

0 No drivers have been identified. 

Correct measurement of drivers (Score 0 -10) 

This score relates to if they are actually measuring the drivers which have been 

determined for each EAC. Scores are based on equipment being in place which 

monitors the measurable for each driver. 

If drivers and their measurement type have not been defined for each EAC, the 

score should be 0. In order to prevent the collection of data that will not be used, it 

is important to begin by defining the drivers and their measurement type prior to 

putting equipment in place to monitor the drivers. 


10 If they k now their drivers, they are correct drivers to measure and 

they‟re being measured 

7 They know their driver‟s, why they‟re important and are measuring the 

majority of the drivers 

5 They know their driver‟s, why they‟re important and are measuring ½ of 

the drivers 

3 They know their driver‟s, why they‟re importan t but are measuring less 

than ½ of the drivers 

0 They don‟t know their drivers, the drivers are not identified correctly or 

if there‟s no measurement. 


Part A

Data Capture Systems 

Effort in meter reading (Score 0-5) 

Manual data collection and entry s ystems b ecome unreliable and cannot offer high 

resolution data. Data collection may be any or all of the following: 

� Automatically passed from meter to PLC and data historian. No manual 

effort is required. 

� Data is only passed part way through an automated s ystem. 

� Data is captured by taking manual reading and typed in computer 

systems (excel or other database). 

Score by assessing the manual effort required to get the data into a data historian. 


5 Complete automated System for data monitoring and collection. 

4 Automated System for data monitoring; only partial data is collected 

automatically. Some portions of automated system not functional. 

3 Data is monitored via the DCS or SCADA s ystem, but is not captured by 

a data base and needs to be recorded manually. 

2 Manual readings taken from meters or remote totalizers and entered into 

a database. 

1 Manual readings taken from meters with no database entry. 

0 Energy meters are not in place or not accessible. 

Effort in data entry (Scor e 0-5) 

If automated s ystems are in place to collect data and no human intervention is 

required score high. 

� Are the manually recorded readings directly typed into the data base or 

are further conversions required before entry 

� If the data entry s ystem match es the same order as the manually 

recorded data less chance exists to enter data in wrong areas. Easiest 

data entry is where both screen and list are in the same order. 

� Data entry is an assigned duty with back -up people assigned to cover 

vacation & sick t ime. 

Score based on impression and level of organization of data entry system 


5 Automated s ystem in place to store data in a data historian s ystem. 

3 Partially automated collection of data into a data base. Some data is 

still entered manually 

2 Manual entry into a database 

1 Manual entry into an excel spreadsheet with no ability to data mine 

0 No data base exists. 


Part A

Error Checking mechanisms included (Score 0 -5) 

This score card assesses whether error checking s ystems ar e in place to quickly 

identif y faulty readings from the energy meters or driver measurements . 

� Error check might be operation of utilities against production totals. Out 

of range or zero should be flagged 

� Does the s ystem account for data roll -over in the m eter or receiver 

system 

� Has the s ystem been commissioned such that meter reads have been 

cross-checked against the reporting system? Many metering systems 

have indexes to indicate non-resettable total meter counts. 

� Some metering s ystems have error status flags to indicate electronics 

issues with the meter. For example, an out of range or no flow situation. 

� O&M manuals should be referenced when installing error checking 

mechanisms. 

Score based on impressions of if any error check s ystems are in place or rep orted 

on. 


5 Error Status from the meters or communications status triggers a flag in 

the database indicating that the data is inaccurate. 

3 The majority of the meters have error or communications flag status or 

can be cross checked against other metering system. 

2 Data is manually checked on the reports by someone who is familiar 

with expected values that should be received from the s ystem. The 

reports are then adjusted based on the manual inspections. 

1 Data is manually checked on the reports by someone who is familiar 

with the s ystem. The reports are not manually adjusted. 

0 Data is not cross checked against any expected values and does not 

see any error status on metering. 

Frequenc y of data capture appropriate (Scor e 0-10) 

Both meter and driver data are considered in assessing if data capture is 

appropriate. Key factors in this area are: 

� Is meter or driver data capture frequency capable of meeting the 

minimum requirements for the reporting s ystem? A capture rate of one 

hour will not be able to accurately report on a shift system of 7.5 hours 

for example, similarly capturing ambient temperature readings every 

minute will wastefully increase the amount of data analysis required. 

� Enough resolution is required to ide ntify any meter faults conditions. 


Part A

Examples might be short intervals of flows that exceed meter 

specifications. 

� Sufficient resolution is required to indentify abnormal driver and process 

conditions 

� Enough resolution is required to capture peak meter rates . Electrical 

utility may capture peak electrical consumption based on 15 minutes 

intervals. This will drive the frequenc y of data capture to match the 

utility billing. 

� Only automated collection s ystems can meeting these requirements 

Score based on above five constraints. 


5 Data capture meets all requirements 

4 Data capture s ystems meet majority of requirements, some adjustments 

are necessary to meet frequenc y requirements 

2 Data capture s ystems do not capture data at r equired frequenc y 

0 Data capture rate is not appropriate for reporting or cannot meet 

minimum requirements (manual data collection s ystems). 

Degrees of separation between meters and storage (Score 0 -10) 

The extent of the chain between the metering s yst ems and historical storage will 

dictate the reliability of the chain. Shorter and simpler connections between the 

chains will mean a more reliable data collection s ystem. 

Score based on overall impressions of any existing system. Manual systems score 

as zero. 


10 A working s ystem is in place to automatically collect data. The site staff 

has great confidence in this s ystem. 

7 Some meters are not reporting and some maintenance effort is required 

to fix these issues. 

5 Some technical issues exist with the meters and historical storage 

connection chain. This can be fixed with a dedicated effort. 

2 Technical issues exist with the data collection and s ystem cannot meet 

requirements. Major re-working of this s ystem is required . 

0 Data collection is not possible with the current receiver and/or data 

historian. Also zero if a manual s ystem is used. 

Historical data storage sufficient (Score 0 -5) 

To report on historical utility usage data is stored in a database. Longer term 

storage gives more opportunity to view trends in utility usage. 

� Given the frequenc y of the data capture is the database capable of 

effectively process the amount of stored data for reporting. Examples 

might be where reports take hours to generate 


Part A

� Is the database capable of storing long term data so individual shifts, 

days, months, seasons and years can be reported on 

Score based on impressions of amount of data and over -all functionally of the 

system. 


5 Database historian c an effectively store required amount of data. 

4 Database is functioning correctly but some data not captured 

3 Database historian is capable of storing required data but more effort is 

required to setup database to correctly capture and/or report data 

1 Database needs to be re-configured to store and capture data. Data 

historian may not be up to the task. 

0 Historical data storage is not possible for long term as the database 

cannot store quantity of required data. 


Part A

Data Analysis 

Scale of s ystem appropriate to complexity of analysis (Score 0 -5) 

This criterion compares the scale of the EMIS s ystem and compares with the 

required analysis. The requirements come both from the clients own specific 

requirements and those necessary to provide accurate and reliable analysis. These 

are not necessary the same as some clients will not realize the full requirements 

and potential of an EMIS s ystem. 

Qualif ying considerations include: - 

� Number of meters and frequenc y of data storage and analysis 

� Complexity of reporting and analysis. 

� Single site of multiple site s ystem 

� Resource requirements to facilitate the analysis 


5 System capable of required scale of analysis and technical content. May 

serve multiple sites. Intuitive and/or simple interface to configure and 

obtain analysis. Automated analysis requiring no resource. 

3 System capable of required scale of analysis and technical content with 

minimum resource requirements. Specialist input required for initial set 

up and definition of analysis. 

2 System capable of required scale and technical content but has high 

resource requirements i.e.: specialist knowledge and input required to 

achieve analysis. 

1 System capable of required scale and technical content but has high 

resource requir ements. Either resource not available or not allocated to 

the task. 

0 System incapable of processing the required amount of data in a timely 

manner. Technical capabilities of s ystem inadequate to complete 

required analysis 

Close integration with data capture s ystem (Score 0-5) 

This criterion considers how closely the analysis and reporting tool is integrated 

with the data historian. Closer integration will reduce the resource requirement in 

extracting and processing data. 


5 Full integration with data historian. Access of analysis and reporting 

tool to data historian available at all times 

3 Full integration with data historian. Access of analysis and reporting 

tool to data historian only at pre -scheduled times. 

2 Semi-integrated with data historian. Automated data extraction from 

data historian into separate data base 

1 No integration with data historian. Data can be extracted using batch 

procedure, but requires specialist. 


Part A

0 No integration with data historian. Data must be extracted manually 

from data historian and input into analysis and reporting tool manually 

Comparison of ongoing performance against drivers (Score 0 -10) 

This criterion considers whether the relationship between utility drivers and utility 

consumption is considered on measuring performance. 

Utility drivers are independent variables which have a direct impact on energy 

consumption such as production rate, product mix, occupancy and ambient 

temperature. It cannot be assumed that these drivers have a si gnificant impact on 

consumption. Best practice is to perform multiple regressions (see Appendix 3) 

against a number of drivers and then only to consider those drivers which have a 

statistically significant relationship. 


10 Multiple regression statistical analysis of the impact of all available 

utility drivers. Regular re-screening of utility drivers to ensure that 

changes in circumstances have not changed validity of drivers chosen 

e.g.: change in product mix, new plant instal lation. 

7 Multiple regression statistical analysis of the impact of all available 

utility drivers based only on historical data analysis. 

5 Comparison with multiple utility drivers based on linear regression. 

Consideration of each utility driver independ ently. 

3 Simple comparison against utility driver, based on linear regression or 

visual interpretation. 

0 No consideration of utility drivers. 

Data analysis over flexible time frames (Score 0 -5) 

The period over which data is analyzed will vary according to audience and the 

analysis or reporting required. E.g.: 

� Previous year 

� Monthly analysis for budgeting and management reporting 

� W eekly analysis for operational management 

� Daily/shift based analysis for production and shop floor. 

The definition of each of these time periods is also important, such that analysis 

periods can coincide with actual shift times, corporate reporting periods etc 


5 Flexible and multiple time frames can be selected by the user at any 

time. These can either be programmed in or used ad-hoc. Can use 

several definitions in parallel for a given period 

4 Flexible and multiple time frames can be selected by user at any time 

E.g.: 06:00 Monday to 06:00 Saturday, 8 hour shifts 

2 Flexible analysis time frames either pre defined by user or set by 

system E.g.: last week, month to date etc 


Part A

1 Fixed analysis period, pre -defined by user to coincide with shifts, 

working week etc 

0 Fixed analysis period, defined by s ystem 

E.g. only daily midnight to midnight 

Data aggregated over flexible time period (Score 0 -5) 

Data historians are typically configured to sample meter readings and variables at 

a frequenc y of between 1 minute and 1 hour, however in order to report to different 

audiences it is desirable to aggregate both the consumptions and targets over a 

flexible time frame. 

For shift operations, being able to report consumptions and targets over shifts on 

the previous day will 


5 Aggregate data over multiple variable time periods, m ultiple time period 

data possible on a single report. 

4 Aggregate data over multiple variable time periods, single time period 

on any given report 

3 Aggregate data over variable time period, but only one definition of the 

time period at one time 

2 Aggregate data over fixed time period defined by user 

1 Aggregate data over fixed time period defined by s ystem 

0 Not able to aggregate data 


Part A

Target Setting 

Targets based on analysis of data (Score 0 -10) 

Have the targets been based on analysis of historic performance or on theoretical 

performance characteristics or are they arbitrary? 


10 Target based on multiple regressions, defining both base load and 

variable load. Separate targets entered for start up, shut down, product 

change over and downtime etc. 

7 Target based on multiple regression, defining both base load and 

variable load 

5 Target based on single regression, defining both base load and variable 

load 

3 Targets based on data visualization - Targets based on visual 

inspection of data and subjective decision on appropriate target 

or 

Ad-hoc targets. Corporate energy reduction targets are often based on a 

percentage reduction determined by a desire to reduce energy 

consumption though not determined by any analysis. W it hout analysis it 

cannot be determined whether such targets are achievable or not. 

0 No target. 

Measurement of energy consumption by energy account centre will 

enable some savings to be identified and improvements to be made, 

though without targets the improvement could not be quantified or 

sustained 

Realistic targets defined (Score 0 -10) 

Targets should be based on realistic analysis and should be achievable in the 

medium term 


10 Targets based on statistical analysis and accounts for standard error in 

analysis. The standard error band will take into account the accuracy of 

the target achieved and the uncertainty in the data points. 

7 Targets based on analysis. Target line set as least squares regression 

line. This represe nts the average performance of the target data set and 

is therefore historically achievable 50% of the time. 

5 Target set arbitrarily within achievable range, or Target calculated using 

historical consumption and utility drivers. Set at best achieved leve l 

3 Target set at level not previously achieved 

0 No target. 


Part A

Targets accepted by EAC owner (Score 0 -5) 

For targets to be effective the EAC owner must accept the target as realistic and 

be willing to take action to improve the performance. 


5 EAC owner fully accepts targets and is involved in tightening standards 

4 EAC owner full accepts targets but unsure how he/she can influence 

them 

3 EAC owner will go along with targets without full commitment or EAC 

owner only accepts targets when performance is good. 

2 EAC owners do not accept basis for targets. Reject targets. 

0 No EAC owners 

EAC owner empowered/accountable to improve performance (Score 0 -5) 

Has the EAC owner the authority and ability to implement improveme nt actions 

based on the performance shown by the targets? 


5 EAC owner directly accountable for performance, empowered to take 

action and willing to implement changes 

4 EAC owner directly accountable for performance, empowere d to take 

action but not willing to implement changes 

3 EAC owner has regular contact with person who has accountability and 

empowerment to make changes. Able to influence this person to make 

changes. 

2 EAC owner remote from decision makers. Can instigat e change request 

but reliant on others to decide on whether to implement 

0 EAC owner remote from decision makers and unable to exert any 

influence on them. 

Targets setting process inclusive (Score 0 -5) 

To what extent have the owners of the Energy Acco unt centres been involved in 

the process of target setting? If targets are to be accepted and owned the EAC 

owners they should be actively involved in the process of setting them. 


5 EAC owner fully involved with target setti ng process. 

3 EAC owner present during target setting, but as observer 

1 EAC owner aware of target setting but not involved 

0 EAC owner not involved or aware of target setting. 


Part A

Utility Reporting 

Production of reports (Score 0-5) 

Can reports be produc ed automatically or by multiple people? 


5 Reports available immediately after the end of the period being 

measured 

E.g.: for daily report, day ends at 06:00, reports available 06:30 

3 Reports available 24 hours after end of period 

1 Reports available 1 week or more after end of period 

0 Reports available only if produced as a one off report. Not routinely 

available 

Report Generation (Score 0-5) 

W ho can produce reports? 


5 Automatic report generation, accessible to all stakeholders 

3 Reports generated by wider group of people. Does not require specialist 

knowledge to produce reports. 

1 Reports generated by specialists. Can not readily be produced if these 

people are not available 

0 No allocated responsibility or explicit skills to produce reports 

Timeliness of reports (Score 0-5) 

How quickly are performance reports available after the period of measurement? 


5 Reports available immediately after the end of th e period being 

measured 

E.g.: for daily report, day ends at 06:00, reports available 06:30 

3 Reports available 24 hours after end of period 

1 Reports available 1 week or more after end of period 

0 Reports available only if produced as a one off report. Not routinely 

available 

User friendliness of reports (Score 0 -5) 

Are the reports understood by the users and do they contain data that has been 

agreed with the users? 



Part A

5 Reports eas y to understand for all users. 

3 Some parts of report easily understood, other parts not understood and 

ignored. 

1 Reports are too complex for EAC owner to fully understand or explain 

0 Complex reports, only understood by individual who created them. 

Content of reports (Score 0-5) 

Is the data or information in the reports sufficient to stimulate action and discrete 

enough to direct the focus of the action? 


5 Content is ideal for interpreting performance and making improvements. 

No extraneous content 

3 Contains required information, but masked by am ount of irrelevant or 

unnecessary information 

1 Contain some useful information, but not all information necessary. 

0 Irrelevant or incorrect content 

Readership of reports (Score 0-5) 

Are the reports available to all or restricted to a small set of key users? Are the 

reports paper based or live and generated directly from the data 


5 Live generated reports available to all relevant people. 

Reports made available so that only reports relevant to an individual are 

made available 

3 Live generated reports available to all relevant people. 

All reports available to everyone, even if not relevant. 

Or only some reports relevant to an individual made available. 

1 Paper based reporting, inc onsistent distribution such that relevant 

reports often do not get to relevant person 

0 Paper based reporting with restricted access. 

Ability to roll up reports (Score 0 -5) 

Is it possible to drill down and look at performance from a site level to depar tment 

to EAC and is the data consistent through the hierarchy? 


5 Can drill down, data consistent. All users capable of drilling down. 

3 Can drill down, data consistent. Requires specialist knowledge to drill 

down. 

1 Can drill down but data not consistent 


Part A

0 Not possible to drill down 

Integration with other IT systems (Score 0 -5) 

Is the data in the performance reports available to other internal IT systems 


5 Integrated IT platform. Able to se nd e-mails, download to Excel, W ord 

etc 

3 Limited but useful communication with other systems 

1 Can communicate with isolated s ystems, but not user friendly 

0 Isolated s ystem on separate platform. 


Part A

System Support Skills 

Capability to maintain meters and data capture s ystem (Score 0 -5) 

Can IT hardware/software, faulty meters and communication hardware be 

diagnosed and maintained in house? 


5 Automated condition monitoring and error flagging. Skilled in house 

technicians available to perform maintenance and repairs. 

3 Reasonable capability. Some preventative maintenance and engineering 

procedures in place. Procedures include condition monitoring and 

scheduled calibration and testing 

1 Limited capability. Organization restricted to respond only to 

breakdowns. 

0 No in house capability 

Data capture and reporting on a single network (Score 0 -5) 

Are data capture and reporting s ystems on a single network? Is communication 

between the different components of the s ystem simple ? 


5 Single network and common communication platform 

3 Both s ystems on the same network but some limitations in 

communication between component parts 

1 Separate networks, but communication between the networks possible 

through communication protocols 

0 Systems for data historian and analysis/reporting tool separate and 

incompatible. 

IT Environment up to date (Score 0 -5) 

Are operating s ystems and tools up to date and is technical support for these 

components available? 


5 All s ystems up to date and compatible 

3 Systems still supported b y suppliers but not all kept up to date. Can be 

updated easily if required 

1 Some parts of s ystem out of date and unsupported. Critical parts of IT 

environment stable and reliable. 

0 Systems out of date and no longer supported. Systems unstable 


Part A

Capability to maintain and operate EMIS (Score 0 -5) 

Technical skills are required to understand the s ystem, to modif y s ystem 

configuration on adding new plant/n ew meters. 


5 W ide spread skills available to maintain and operate s ystem. Skills 

updated regularly to maintain pool of capable people. 

4 Good internal skills can cope with all requirements, but limited to one 

individual. Skills would be lost if this person not available 

3 Internal skills available for routine changes. External skills required for 

involved changes. Training and development in place to improve skills. 


involved changes 

1 Very limited internal skill set. Able to call on external resources. 

0 Technical skills no longer available. System unsupported 

Technical skills available to analyze data and set targets (Score 0-5) 

Technical skills are required to analyze data and to set new targets and new 

reports 



involved changes. Training and development in place to improve skills. 

3 Internal skills available for most requirements but limited to 1 -2 people. 

1 Very limited internal skill set. Able to call on external resources. 

0 No internal skills 


Part A

Organizational Structure 

Explicit energy management program (Score 0 -3) 

This criterion checks for the presence of some form of energy management 

program without making any judgments regarding the scope and contents of the 

program hence the low overall weighting. 

Typical indicators of a energy management program will be: 

� A defined energy management polic y; 

� Individuals or groups tasked with reducing energy consumption; 

� Goals or objectives for energy efficienc y improvement; 

It is important to recognize that energy management programs need not be highly 

formalized and could take the form of repeated ad-hoc initiatives. Having a formal 

energy management program which is ineffective at improving performance is 

worse than an ad hoc program where initiatives are continually taking place. 


3 The site operates a struct ured energy management program 

incorporating regular audits, identification of opportunities and 

implementation. The energy management program is a central part of 

the overall site level management s ystem 

2 An energy management program exists and has imp acted on the 

performance of the site or ad hoc activities take place on a regular 

basis to reduce consumption 

1 An energy management program exists but is ineffective 

0 No energy management programs or activities take place 

Objectives set for energy performance improvement (Score 0 -5) 

This criterion is addressing whether objectives have been set for energy 

performance improvement and the nature of these objectives. 

The most successful energy management programs distinguish between long term 

goals, medium term objectives and shorter term targets. Goals are generally 

unchanging and provide the longer term vision, e.g. “to be the most energy 

efficient operator in the sector” ; Objectives are the key stages towards the overall 

goal, e.g. “to improve energy efficienc y by 50% within 10 years”. Targets are more 

immediate and could be the desired changes within the current year, e.g. “to 

reduce energy consumption per kg of production by 5%”. 

The second question to address is whether the targets and objectives are 

achievable and if they have been based on analysis and investigation or imposed 

without any consideration whatsoever. The motivational levels of those tasked 

with achieving the targets will be far greater if they believe that they are attainable 

than if they believe them to be impossible. 


5 Goals, objectives and targets have been set on the basis of analysis 

and investigation and have been demonstrated as achievable. Plans 

have been agreed to meet the targets and objectives. 


Part A

3 Goals, objectives and targets have been set and are perceived by the 

site level staff as achievable 

1 Goal and objectives exist but they have been set without consideration 

of what is achievable 

0 No goals, objectives or targets exist for energy perf ormance 

improvement. 

Explicit Management Commitment (Score 0 -5) 

“Senior management commitment is essential” is a common mantra heard 

whenever any management s ystem is considered. W hat does management 

commitment mean in practice? 

Typical indicators for management commitment are: 

� A board member or managing director acting as the organizational 

sponsor for the energy management program; 

� The appointment of an individual or team reporting to the program 

sponsor tasked with the day-to-day operation of the energy management 

program; 

� Management endorsement of the goals, objectives and targets; 

� Inclusion of resources for operation of the energy management program 

within the annual business plan; 

� Management involvement in awareness and communications activities 

demonstrating leadership by example. 

� Treating investment in energy efficiency the same as all other 

investments and not applying preferential criteria to production related 

investment; 

� Organizational commitment to publish information about utility 

performance to external stakeholders; 


5 Active commitment from senior management, management action to 

embed energy management at all levels of organization and resources 

allocated. Senior management visibility in leadership of energy 

management actions. Dedicated resource allocated to energy 

management who is empowered to make decisions and is supported by 

senior management – e.g. energy manager 

3 Senior management involvement in energy management but falling short 

of commitment. Part time resource allocation to energy management. 

1 Responsibility for energy management devolved to an energy manager 

or equivalent with no support provided by senior management 

0 No evidence of commitment from senior management 

Energy team(s) established and key stakeholders included (Score 0 -5) 

Successful energy management is people oriented, in general the more people 

involved with the program and engaged with the program the more successful it is 

likely to be. One means of securing engagement is through the use of energy 


Part A

“teams”, they also help to ensure that the efforts of everyone are structured and 

planned. 

Depending on the scale of the organization, energy teams can operate at a site or 

department level what is important is that they bring tog ether the range of 

functional responsibilities needed for energy management: 

� Production / operations 

� Energy supply 

� Maintenance 

� Engineering / technical 

� Optionally human resources and finance. 

The responsibility of the energy team is to manage and implement the program of 

activities that make up the energy management program whether this involves the 

investigation of variance or leading the awareness and communication campaigns. 


5 Energy teams defined and roles and responsibilit ies agreed. Energy 

teams actively involved in investigation of variances, identification and 

implementation of corrective action and awareness raising and 

communication. 

3 An energy team has been set up and roles and responsibilities have 

been agreed. Energy team involvement too infrequent to be effective. 

1 An energy team has been set up but no clear roles and responsibilities 

have been defined. 

0 No energy teams in place. 

Accountability for utility performance devolved to production / operations ( Score 0- 

10) 

Some of the major barriers to improving energy performance arise from either the 

lack of accountability for energy performance or where accountability is 

misallocated. 

In the majority of production environments the decisions of the production 

management are determinants in the energy performance of the plant: 

� Through their control of operational parameters such as pressure and 

temperature; 

� Through the scheduling of products; 

� Through lack of standard operational procedures for start up and shut 

down which results in machines running empty. 

Other issues occur where the responsibility for energy performance is held by 

technical or engineering functions – typically these functions are directly 

responsible for energy supply but have little influence over energy consumption. 

Energy management programs are far more likely to succeed if the production or 

operation management are held accountable for all of the resources used in 

production including raw materials, people and utilities. 


10 Production or operational departments are held directly accountable for 

their utility consumption. Energy costs are a line item on the 


Part A

departmental or operational budget and managers are incentivized to 

meet targets for performance improve ment. 

7 Production or operational departments are held directly accountable for 

their utility consumption. Utility costs are a line item on the 

departmental or operational budget but no incentivi zation s ystems are in 

place to meet targets for performance improvement. W here submetering 

exists costs have been split into direct and indirect charges 

based on meter readings. 

5 Production and operational departments are held jointly accountable for 

utility consumption together with the technical departments. W here submetering 

exists it is not used to split energy costs into direct and 

indirect charges. 

3 Production and operational departments are held jointly accountable for 

energy consumption together with the technical departments. 

0 Accountability for energy consumption resides within the technical or 

engineering department; the production departments are charged for 

utilities on the basis of historical allocations and treat energy costs as 

production overheads. 


Part A

Management Procedures 

Regular reviews of utility performance (Score 0 -5) 

W ith or without EMIS providing information and reports, it is important that review 

processes exist to verify that the utility performance of the plant remains at an 

optimum. 

W here basic utility data capture and analysi s exists – for example use of data from 

the monthly utility receipts for the site as a whole coupled with calculation of 

specific utility ratios using production data, the review process may simply involve 

comparison of the current month‟s ratios with hist oric trend. 

More sophisticated organizations may receive weekly utility data and make 

comparisons with production and other factors known to have an influence on 

performance such as ambient temperature, operation hours etc. This comparison 

may use statistical techniques such as regression and Cusum. 

Unless regular reviews of utility performance take place then changes in 

performance will pass unnoticed and no corrective action will be triggered. 

The frequenc y of the review process and its scope will be det ermined by the 

reporting frequenc y of the data. Clearly this should be aligned to the importance 

of utility costs to the organization – an organization where the utility bill is less 

than $50,000 / year and less than 1% of total costs will have different needs for 

review than an organization where the bill is in excess of $5,000,000 and 8% of 

total costs. 


5 A regular review process is embedded in the management s ystems of 

the site and is held at a frequenc y appropriate to th e importance of 

energy costs to the organization. 

3 A regular review process is embedded in the management s ystems of 

the plant but there is a mismatch between the frequenc y of the review 

process and the importance of utility costs to the site. 

1 Utility costs are reviewed on an ad hoc basis. 

0 No review process exists beyond annual budgeting. 

Actions assigned and followed up (Score 0 -5) 

W here review processes exist, there will be occasions where the energy 

performance either varies from historic tren ds or from predicted amounts. The root 

causes of this variance should be identified – if the plant is performing better than 

expected then there is justification to try to understand why and to ensure that the 

factors become normal practice, if the plant is operating worse than expected 

again there may be sufficient justification to understand why and eliminate the 

underlying causes. 

In both cases the action to identify the root cause will need to be assigned either 

to an individual or to a team and should be followed up at the subsequent review 

meeting. 

More sophisticated organizations operate “Action Registers” or “Action Databases” 

which store information on the nature of the variance, who has been assigned to 

resolve the issue, the outcome (i.e. cause a nd response) and the date of 

resolution. These registers become part of the organizational knowledge base and 

in the case of multi site organizations can be used to share information across 

EMIS Ma nu al Page | 10 0 

Part A

sites. 

The aim of this criterion is to verify if the client has s ome organizational s ystem in 

place to assign actions to individuals or teams and to ensure that those actions are 

completed. 


5 Action register or equivalent operated as part of review s ystem with 

actions assigned to individ uals or teams, follow up of previous actions 

an agenda item in the review process. Knowledge gained in process 

shared throughout organization or site. 

3 Action register or equivalent operated as part of review s ystem but no 

follow up of previously assign ed actions. Ad hoc process for assigning 

and following up of actions. 

1 Utility review process not operated s ystematically to identify actions. 

Actions identified intermittently and rarely followed up. 

0 No process exists for capturing and managing acti ons. 

Staff incentivized to improve performance (Score 0 -5) 

As mentioned earlier the more people involved with the program and engaged with 

the program the more successful it is likely to be. However involvement is not 

sufficient, in general people will need to be incentivized to improve performance. 

This incentivization has three important elements: 

� Awareness – the staff must be aware of the role they can play in 

reducing the energy consumption of the items of equipment or plant 

under their direct cont rol. 

� Motivated – they must be sufficiently motivated to want to improve the 

performance. 

� Rewarded – they should be rewarded when their actions lead to 

improved performance. 


5 Staff motivated to improve performance of equipm ent under their 

responsibility, aware of impact they can make and recognition and 

reward s ystems in place to motivate behavior. 

3 Staff aware of impact they can make and reasonably motivated but lack 

of recognition and reward schemes means that motivation temporary 

and not sustainable. 

1 W hilst staff aware of the impact they can make on utility performance, 

lack of adequate recognition and reward s ystems means that action 

rarely takes place. 

0 Staff unaware of impact they can make on utility performance and 

uninterested 

Sufficient resources allocated to management s ystem (Score 0 -5) 

An EMIS and an energy management system will require resources to maintain and 

operate. T ypical resource needs will include: 


Part A

� Maintenance of hardware – e.g. meters and data capture 

� Maintenance of software – e.g. updating targets, production and 

distribution of reports 

� Management time – review meetings, action plans, corrective action, 

communication and awareness; 

� Staff resources – energy team(s) operation, technical studies to identif y 

root causes of variances 

� Financial resources (Annual budget allocation?) 

If the client has an existing utility management s ystem this will involve verification 

that sufficient resources are allocated to maintain the s ystem fit for purpose. If 

the client lacks a dedicated energy or utility m anagement s ystem this will involve 

reviewing other management s ystems in place and confirming that the client has 

experience of dedicating resources to operation of management s ystems. 


5 Adequate resources assigned to the energy management s ystem and 

operation of the management s ystem a primary responsibility of all 

concerned. 

3 Although resources have been allocated to the management s ystem they 

are insufficient given the scale and scope of the s ystem. Although 

considered as a primary activity, responsibilities are sometimes not 

assumed. 

1 Insufficient resources allocated to management s ystem, operation of 

management s ystem seen as ad hoc secondary activity and not part of 

the roles and responsibilities of the individuals concerned. 

0 No resources assigned to the management system. 

Regular reviews of management s ystem performance (Score 0 -3) 

Remembering that utility management is a continuous c ycle and at intervals the 

whole s ystem and the way it matches the needs of the organization should be 

reviewed. This review should address the possible needs for changes to the 

system, working from the initial objectives through the organizational structure and 

responsibilities to the procedures. 

In this part of the assessment the auditor should be looking for evidence that the 

organization is maintaining the management system and that it has not become the 

equivalent of „organizational concrete‟ – set in place and unchanging. 


3 The management s ystem is subject to regular reviews and there is 

evidence of the s ystem evolving to meet the changing requirements of 

the organization. 

2 The management s ystem is subject to review but these happen on an 

irregular basis. Some evidence of the s ystem evolving. 

1 Although in principle the s ystem is subject to reviews, there is no 

evidence of reviews having taken place. 

0 There are no procedures in place to review the management s ystem 


Part A

Operational / Maintenance schedules for reduced utility consumption (Score 0 -5) 

This criterion looks for concrete examples of management action to reduce energy 

consumption and hence improve energy performance. 

An operational schedule for improved utility performance may involve s tart up and 

shut down lists to ensure that all equipment that can be turned off is turned off. 

Equally it could include recommended operational parameters where these are 

under the direct control of an operator and not embedded into a control s ystem. 

W here the organization has a control s ystem that includes logic for optimizing 

energy consumption then they should score highly in this criterion. 

Maintenance schedules could include: 

� Regular leak detection programs for compressed air or steam leaks 

� Thermo graphic surveys for heat losses from high temperature 

equipment, e.g. furnaces, ovens, steam lines. 

� Steam trap surveys to detect passing traps. 

� Preventive maintenance tasks in Maintenance Management Systems 

that improve energy efficienc y 


5 There is evidence of management action to reduce energy consumption 

in all possible areas relevant to the site. 


in most possible areas relevant to the site. 


in some possible areas relevant to the site. 

0 There is no evidence of management action to reduce energy 

consumption. 

Active reporting s ystem for energy waste issues (Score 0 -3) 

Many manufacturing improvement s ystems promote the role of the equipment 

operator in maintenance of the equipment under their control. Energy management 

systems are no exception and encourage the operators of equipment to look out for 

areas of energy wastage as part of t heir daily checks: 

� Compressed air leaks; 

� W ater leaks; 

� Steam leaks; 

� Missing or damaged insulation, etc 

For these types of systems to be effective there needs to be the organizational 

infrastructure in place to allow operators to report issues relating to en ergy 

wastage and for these issues to be resolved. 

In practice this means having in place: 

� A means of reporting the issue 

� A means of prioritizing these issues within the framework of the 

maintenance routines 

� A feedback loop to the operator who identified th e issue to confirm that 


Part A

the issue has been noted and will be resolved and the approximate 

timescale for resolution. 

W ithout the feedback loop the operator may feel that the effort to identify the 

issues is wasted and may not do so in future. 


3 Active reporting s ystem for utility wastage exists with prioritization and 

feedback loops 

2 Active reporting s ystem exists with prioritization of corrective action, no 

feedback loops exist. 

1 Active reporting s ystem for utility wastage exists but no attempts are 

made to prioritize corrective action and no feedback to the person who 

identified the source of wastage. 

0 No reporting s ystem for utility wastage. 


Part A

Communication, Training and Awareness 

Training of operational staff (Score 0-5) 

This section looks at the amount of training operational staff receive about utility 

use in their areas of control. 

It is not uncommon for operators to have little grasp of the cost of the energy 

resources under their control nor to have been provid ed training in conservation of 

resources. 

This section of the assessment addresses the amount of training the operators 

have received regarding the energy consumption characteristics of the equipment 

under their control and should be used as the basis of a ny recommendations 

regarding training and development program as part of the EMIS implementation. 


5 Equipment operators receive regular training and refresher courses on 

the energy performance of the equipment under their con trol and steps 

to take to optimize performance. 

3 Equipment operators receive training on the utility performance of the 

equipment under their control and steps to take to optimize performance 

when they first use the equipment. 

1 Equipment operators receive training on the utility performance of the 

equipment under their control but this does not address the steps they 

should take to optimize performance. 

0 Training of operators does not address the utility performance 

characteristics 

Training of Energy Team and Senior Management (Score 0 -3) 

Due to their broader remit, the energy team will need to have a more developed 

skills set than operational staff. The expectation of the energy team is to be held 

accountable for the implementation of energy man agement activities including: 

reviewing utility performance reports, identification of significant variances, root 

cause identification and resolution, communication and awareness raising, etc. 

These skills sets may fall outside of the normal activities of the team and hence 

they will need to have been trained specifically for this role. The outcome of this 

assessment should also be used to define the training and development 

programmed as part of the EMIS implementation. 


5 Energy teams have received specific training to enable them to fulfill 

their roles and responsibilities. 

3 Energy teams have received train in most subjects relevant to their 

roles and responsibilities, some training needs remain. 

1 Energy teams have rece ived train in some subjects relevant to their 

roles and responsibilities, significant training needs remain. 

0 Energy teams have received no specific training. 


Part A

Communication of energy performance to all staff (Score 0 -5) 

Earlier criteria have addressed the awareness and motivation of all staff in 

engaging with a utility management program. In order for the staff to be aware 

they need to be provided with regular information regarding utility performance, for 

their area of responsibility and equally for the site as a whole. 

It is important that all utility information is communicated in a way that is 

understandable by the target audience – few people outside of the key technical 

areas have any concept of how big an mmBTU is or even a kW h. This means that 

the information should be presented in costs terms or as performance ratios (e.g. 

85% of target). 

If staff is not provided with regular information on performance then they will stop 

being concerned by it and behavior may revert to previous practices. 

In overall terms – information can be “pushed” to the staff, generally via their line 

management hierarchy, or “pulled” by the staff, i.e. it is made available but it up to 

the individual concerned to obtain the information. The most successful 

communication strategies adopt a mix of information “push” and “pull” where 

critical information is pushed to staff and if they are interested they are able to 

obtain more broad based information on a pull basis. 


5 Organization operates a “push/pull” communication strategy where all 

staff members receive regular information on energy performance in a 

form that is understandable to them. 

3 Organization operates a “push” strategy or provides information in a 

form that is not immediately com prehensible. 

1 Organization operates a “pull” strategy or only provides information to a 

small subset of the staff. 

0 No energy information is communicated to staff. 

Energy performance included in reports to external stakeholders (Score 0 -5) 

Organizations will be more likely to sustain energy savings if they are committed to 

reporting energy performance to external stakeholders such as investors and 

customers. 


5 Organization is committed to reporting of energy or emission s 

performance information to external stakeholders. Information is 

provided in sufficient detail so that trends in performance can be easily 

identified. 

3 Organization includes energy or emissions performance information in 

reports to external stakeholders but information is provided is 

insufficient to identif y trends in performance. 

1 Organization only reports energy or emissions performance information 

to internal stakeholders – i.e. from site to corporate. 

0 No reporting of energy performance to eith er internal or external 

stakeholders. 


Part A

Awareness campaigns undertaken regularly (Score 0 -5) 

Previous criteria have addressed incentivization and communication, this criterion 

looks at the programs or activities in place to maintain awareness of energy or 

energy issues within the site. 


5 Regular awareness activities take place maintaining adequate levels of 

awareness of energy and energy issues 

3 Some awareness activities take place but too infrequently to maintain 

performance levels 

1 An awareness program has been delivered on a one -off basis. 

0 No awareness activities take place. 


Part A

Procurement and Investment 

Energy performance in investment decisions (Score 0 -5) 

This criterion checks whether energy performance is inc luded in the decision 

making processes for all new items of capital plant and buildings. Since it is 

easier to design in energy efficienc y than to retrofit it later energy performance 

should be an equal criterion in selection together with production rate s and quality. 

For energy intensive items of equipment such as refrigeration or air compressors, 

energy performance eat both full and part loads should be the key criteria in the 

selection of suppliers. 


5 An expert reviews al l major investment projects to verify that the energy 

performance has been included in the decision making process and that 

all economically viable means are incorporated to reduce the lifetime 

energy consumption. 

3 An expert reviews all major investment projects to verify that the energy 

performance has been included in the decision making process however 

first cost considerations have a greater weight and some economically 

viable means to reduce the lifetime energy consumption are excluded. 

1 Only energ y projects are reviewed and performance included within the 

specification. 

0 There is no review of investment projects to address their energy 

performance 

Procurement policies for low value items (Score 0 -5) 

This criterion checks whether the organization has standard policies in place for 

the procurement of low value items such as motors and drives or luminaires and 

lighting. It is generally m ore economic to replace a motor by a high efficienc y 

motor when it needs replacement rather than by rewinding i t. Equally when 

lighting needs replacement it is important to specif y high efficienc y luminaires and 

controls. 


5 The organization has policies and procedures in place to ensure that all 

small scale procurement is energy effi cient. 

3 The organization has policies and procedures in place to ensure that 

most small scale procurement is energy efficient. 

1 The organization has policies and procedures in place to ensure that 

some small scale procurement is energy efficient. 

0 The organization operates a lowest first cost procurement polic y for 

small scale items. 

Procurement of utilities informed by data and analysis (Score 0 -5) 

This criterion is used to determine the extent to which energy procurement is 

informed by data and analysis. This covers analysis of energy commodity 

procurement and management to ensure that: 


Part A

� operational requirements are met and maximum flexibility is offered to the 

facility; 

� negotiating optimal contracts; 

� daily scheduling and interruptible options ar e taken advantage of, and; 

� bills are analyzed for errors and detailed consumption data is kept. 


5 Procurement of utilities is informed by detailed data analysis 

incorporating forecast of both production and environmental fac tors. 

Opportunities for reducing costs by scheduling and interruptible options 

are exploited. 

3 Procurement of utilities is informed by detailed data analysis 

incorporating forecast of both production and environmental factors. 

Opportunities for reducing costs by scheduling and interruptible options 

are not explored. 

1 Procurement of utilities is based on historic consumption patterns. 

0 Procurement of utilities is undertaken in isolation of data or insights 

which could inform the process. 

Maintenance budgets include line items for energy s ystems (Score 0 -5) 

This criterion checks whether maintenance budgets include specific line items for 

regular maintenance activities for the energy systems specifically addressed to 

reduce wastage. Typical activit ies would include: 

� Compressed air leakage surveys; 

� Steam trap surveys; 

� Steam leak repairs; 

� W ater leak repairs; 

� Thermo graphic surveys of electrical switchgear; 


5 Site has a regular preventative maintenance and repair program which 

covers all energy s ystems; 

3 Site has a preventative maintenance and repair program which covers 

all energy s ystems but frequenc y of surveys is insufficient; 

1 Site has an ad hoc maintenance and repair program for energy s ystems; 

0 Site undertakes no surveys of energy s ystems. 


Part A

A4 Data Analysis and Savings Estimation 

This section introduces the technique of linear and multiple regression, which is 

used in the initial definition of the savings potential from EMIS. 

� Single regressions against produc tion and weather factors (Normally available 

from sites such as www.wunderground.com ) – Using tools such as the Data 

Analysis Add-in in Excel the auditor should compare the variations in energy 

consumption for each utility against production and environmental factors. 

W hen using single regression, i.e. the direct comparison of energy consumption 

against a single factor such as production the objective is to obtain a 

regression coefficient (R2) of at least 0.7. I f the resulting value of R2 is less 

than 0.7 there are two possible conclusions: 1) the factor chosen is not 

significant in the variation of energy consumption or 2) other factors are 

significant. If it is believed that other factors are significant then multiple 

regressions should be used. 

� Multiple regressions. Again it is recommended that the Data Analysis Add -In 

for Excel is used for multiple regression analysis. W ithin the analysis results it 

is important to look at the statistical output to determin e the relevance of 

factors chosen for multiple regression – W ithout getting into the statistical 

details of regression for the model to be useful for prediction and control all P 

values should be less than 0.05 and the Adjusted R 2 value should be greater 

than 0.7. In the example in Figure 2 below, whilst the overall Adjusted R2 is 

0.91, the P-Value for CDD (a typical abbreviation for Cooling Degree Days) is 

0.7359, thus CDD is not significant in this model and the multiple regressions 

should be repeated without this variable. 

Figure 29. Typical output from Excel Multiple Regression 

SUMMARY OUTPUT 

Regression Statistics 

Multiple R 0.957 

R Square 0.915 

Adjusted R Square 0.910 

Standard Error 1969.38 

Observations 56 

ANOVA 

df SS MS F Significance F 

Regression 3 2176219143 725406381.2 187.0339155 7.7244E-28 

Residual 52 201680704.3 3878475.084 

Total 55 2377899848 

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% 

Intercept 12385.822 2321.6951 5.3348 0.0000 7727.0004 17044.6443 

Prod 0.003 0.0001 23.4266 0.0000 0.0028 0.0033 

CDD 1.011 2.9807 0.3391 0.7359 -4.9703 6.9920 

HDD 3.938 0.6636 5.9344 0.0000 2.6064 5.2696 

In all regression analysis the auditor is looking at the quality of the relationships 

between the energy consumption and the factor or factors included in the analysis – 

the relationships should be good because this makes the performance equations 

good models for prediction and control, however if they are „too good‟ the auditor 

should exercise some caution, it might indicate that the figures provided have been 

based on some form of mathematical formula and may not represent actual 

consumptions. 


Part A

This site level data analysis can also be used to generate an initial estimate of the 

savings potential from EMIS at the site. The methodology for savings estimates is 

as follows: 

� Perform the linear regressions using data over three years if using monthly data 

or 1 year if using weekly data; 

� Generate the performance equation for the best fit line; 

� Calculate the predicted consumption from the performance equation; 

� Assume all positive variances (i.e. where actual consumption is in excess of the 

predicted consumption) can be eliminated through EMIS; 

� Compare sum of positive variances to total consumption over period and this 

becomes the initial estimate of savings potential expressed as % of current 

consumption. 

The outputs of this form of savings estimation need to be validated by the auditor‟s 

experiences during the audit. It is perfectly acceptable to vary the calculated 

savings estimates based on the overall findings of the audit. 

The box below shows the methodology applied to a sample set of data. 

SUMMARY OUTPUT 

Regression Statistics 

Multiple R 0.926 

R2 0.858 

Adjusted R2 0.853 

Standard Error 2687.12 

Observations 56 

ANOVA 

df SS MS F Significance F 

Regression 2 2315997452 1157998726 160.3736527 3.31125E-23 

Residual 53 382693362.9 7220629.489 

Total 55 2698690814 

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% 

Intercept 10215.30 3057.67 3.34 0.00154 4082.381 16348.214 

Prod 0.0031 0.000 17.877 4.222E-24 0.003 0.003 

HDD 2.5808 0.863 2.992 0.00420 0.851 4.311 


Part A

Predicted Variance 

Month Prod HDD Actual gas 

Gas 

if +ve 

Aug-04 16014213 17 61057 60063 994 

Sep-04 16239613 59 60502 60873 0 

Oct-04 16101013 403 60071 61329 0 

Nov-04 15433975 604 58843 59773 0 

Dec-04 15453713 1,003 60497 60864 0 

Jan-05 17786914 1,205 70954 68642 2312 

Feb-05 16838448 932 68117 64987 3129 

Mar-05 18482522 968 65440 70193 0 

Apr-05 17179057 412 62963 64705 0 

May-05 18423678 295 69842 68274 1568 

Jun-05 16617686 12 60603 61927 0 

Jul-05 16798253 0 61918 62458 0 

Aug-05 18413749 0 67251 67482 0 

Sep-05 14385525 41 55831 55060 771 

Oct-05 16592653 344 66035 62706 3329 

Nov-05 17234156 646 68130 65480 2650 

Dec-05 15833309 1,183 62748 62509 239 

Jan-06 19291621 914 70490 72570 0 

Feb-06 17585844 951 67072 67361 0 

Mar-06 20484708 780 79196 75935 3261 

Apr-06 18479701 400 67448 68719 0 

May-06 19199437 202 72452 70447 2006 

Jun-06 16986315 24 57985 63105 0 

Jul-06 16663824 0 65101 62040 3061 

Aug-06 18710109 1 69343 68406 936 

Sep-06 15254123 116 61181 57955 3226 

Oct-06 20663219 429 74730 75585 0 

Nov-06 17918153 587 69140 67455 1685 

Dec-06 14853040 839 60686 58573 2113 

Jan-07 17369189 1,018 70310 66860 3450 

Feb-07 16826829 1,187 62513 65609 0 

Mar-07 21219783 836 76479 78366 0 

Apr-07 18407391 526 72854 68819 4035 

May-07 21024569 148 72370 75984 0 

Jun-07 18825272 12 63258 68793 0 

Jul-07 19015097 7 73132 69370 3761 

Aug-07 19988213 18 73978 72425 1552 

Totals 2460521 2451703 44081 

Saving % 1.80% 


Part A

The EMIS Audit

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