Here, Chris Dee, executive director of BCAS (British
Compressed Air Society) outlines some of the recent
changes to the ETL (Energy Technology List) and encourages
operators of compressed air equipment to check before any
purchase that the equipment is still listed

You don’t have to look very far these
days to see that energy – both the
increased cost of it and the
requirement on all of us to use less of it – is
driving the agenda for change.

The world’s leaders are constantly looking
to devise new and sustainable ways to limit
the effects of climate change. Across industry,
energy and efficiency concerns have become
the norm and part of day-to-day operations;
increasing obligations are being placed on
businesses to improve their carbon footprint.

Modern, high quality compressors will offer
maximum performance, energy efficiency and
low total cost of ownership over many years.

Therefore a lot of time and care should be
taken to choose the right compressor for the
job. Determining the right size of compressor
for an application is an important
consideration; especially as the capital cost of
buying it is just a small part of the overall life
cycle cost, which is the key factor in running
the compressor over its working life.

Part of the Government’s programme to
manage climate change, the Enhanced Capital
Allowance (ECA) scheme encourages businesses
to invest in more efficient plant or machinery
specified on the Energy Technology List (ETL),
which is managed by the Carbon Trust.

By investing in technologies listed on the
ETL, businesses can benefit from a 100% first
year capital allowance against the taxable
profits of the period of investment.

In August 2012, a number of changes came
in to effect, which have impacted on the
current composition of the ETL. In particular,
the ‘refrigeration compressors’ category now
includes some major changes to its criteria,
while there are a number of housekeeping
changes in the ‘compressed air – refrigerated
air dryers with energy-saving controls air to
water heat pumps’ category.

In addition, the energy-saving controls for
desiccant air dryers category is now no longer
eligible for ECAs.

CRC Energy Efficiency Scheme
In his recent autumn statement, the chancellor
announced changes to simplify the CRC Energy
Efficiency Scheme (formerly the Carbon
Reduction Commitment). The mandatory UKwide
trading scheme introduced in 2010, targets
emissions from large public and private sector
organisations by encouraging the uptake of
cost-effective energy-efficiency opportunities.

The CRC applies to all companies,
partnerships, public bodies, charities and other
incorporated bodies that have operations in
the UK (where they have used over 6000MWh
of half-hourly metered electricity and affects
approximately 5000 organisations in the UK).

Under the new proposals, participants will
benefit from:
Reduced complexity, including less overlap
with other schemes.

A 55% reduction in administrative costs.

This equates to savings of up to £272
million up to 2030.

A clearer set of rules to help encourage the
adoption of energy-saving measures and the
installation of more efficient equipment.

The new order is expected to come in to
force on 1st June 2013 and the majority of the
proposals will then be introduced in 2014/15.

Energy Bill
November 2012 saw the Government’s
introduction of the long-awaited Energy Bill, a
legislative framework designed to deliver secure,
affordable, low-carbon energy in the UK.

It has naturally been met with scepticism in
some quarters, reporting increased household
and business energy bills to help fund clean
energy projects and new power infrastructure.

However, just as compressed air
manufacturers are continually seeking new ways
of achieving the best energy performance, so
too must the Government make strides to
secure the country’s future energy infrastructure.

Included in the bill are provisions for
electricity market reform and the upgrade of
the grid by 2020 to cope with rising electricity
demand, as well as the regulation of the next
generation of nuclear power plants.