Business Energy Users Survey - Winter 2008/09 - Moffatt Associates

npower Business Energy Index 2009npower Business Energy Index 20093.18 Ofgem has recently released a new set of guidelines in relation to the transparencyand accuracy of the information on “green tariffs”. How do you currently perceivethe accuracy and quality of information in this area?•ResponseRatingPerceived level of accuracy of green tariff information 3.54The current level of information provided 3.53Overall transparency regarding green tariffs 3.1Survey results suggest that the current level oftransparency and information on green tariffs is poor.However this result cannot be considered totallyaccurate given some of the MEUs interviewed saidthat it was not company policy to buy ‘green’ energy,or company policy was not to buy ‘green’ due to cost(see below).Please rate the following:(1 – poor, 10 – excellent)3.19 Will Ofgem’s proposal for an independent accreditation agency to monitor schemesto ensure they provide environmental benefits above and beyond that of “businessas usual” (ie ROCs) encourage you to buy more “green” energy?Will Ofgem’s proposal for an independent accreditation agency tomonitor schemes to ensure they provide environmental benefits aboveand beyond that of “business as usual” (ie ROC’s) encourage you to buymore “green” energy? If no why not?Selected comments“We don’t buy green energy and have no plansto do so. It doesn’t count towards the CRC andour regulator won’t fund it.”“What is the point of me buying green if I can’tclaim anything back - it is not included in mycarbon calculation.”“We have historically purchased green energy -we have now been told there is not enough inthe UK to supply us!”“We will only do it if we are instructed by theGovernment.”“It comes down to costs. Bottom line every time -having said that we do buy 25% green energy.”“It is just another layer of regulation.”“We don’t buy green energy. Too expensive”“It will be on a cost/benefit basis. We do buygood quality CHP anyway. There is a premiumand it may better to spend this premium on otherthings that have a better green payback.”“Any reasoning for buying green will be to dowith our customer ethos.”“I’d like to say yes but the model has beenskewed by CRC.”“We won’t pay a premium for green. There isno evidence that we lost a contract, even tothe Government, for not using green power.”ResponsePercentageYes 26%3.20 Please rate the level of pressure exerted on your business from the following,with regard to having “green” credentials.No 74%ResponseRating•Most MEUs believe that an independent accreditationagency to monitor schemes in an attempt toencourage people to buy ‘green’ would not work(74%). Most cited that it was either too expensive,it would not count towards their CRC, it was anotherlayer of unnecessary regulation or that companypolicy was not to buy ‘green’ energy (see below).•The fiercest opposition was from MEUs operatingin the service sector with only 8% of them indicatingit would be effective.Suppliers 1.83Customers 4.52Investors 3.32Media 4.51(on a scale of 1-10, where 1 = no pressure, 10 = greatest pressure)•MEUs felt that pressure to have ‘green’ credentialswas coming mainly from customers (4.52) and themedia (4.51).•The ratings in each category increased frommanufacturers (low ratings) through the publicsector and to the service sector (high ratings)with customers driving green credentials in thosecompanies that are more customer orientated (5.9).5253