Nightwatchman 6.5 released – Introducing the PC Estate Profiler

Hello All,

I’m very pleased to announce the release of 1E’s globally renowned PC power management solution - NightWatchman Enterprise 6.5.

Version 6.5 officially supports Microsoft Systems 2012 Configuration Manager SP1 as well as Windows Server 2012, SQL 2012, Office 2013 and Windows 8.

Also included in this release is a unique new feature which looks at actual utilization of PCs in an organization:

The PC Estate Profiler is a strategic decision making tool for organizations which monitors and reports hardware utilization of all PCs across your estate.

nightwatchman pc estate profiler report daily

 This can enable key stakeholders to make intelligent business decisions, including:

•       Allocating resources by location
•       Eliminating hardware waste
•       Applying power policies for periods of inactivity
•       Reducing energy footprint
•       Assessing required floor space e.g. in an office or retail outlet

Read more about it in our press release on the 1E Media Center.

Michelle Hazelton | Product Manager, 1E

Face facts, WE are responsible for the “unseasonal” weather

I lost count of the number of people who commented on the unseasonal weather whilst out going about my business this weekend. Here, in Sheffield, we had about 15cm of snow fall over the course of Friday and Saturday. This was described as being “dreadful” and “foul” by some of my fellow shoppers, who were panic buying all the milk, bread and meat they could get their hands on. I have to say, I made the most of it and had a great time playing with my dog Pippa. She particularly enjoyed me throwing snowballs over drifts more than a metre deep in our local park where she would land submerged in soft powdery snow. Here’s an action shot.

clip_image002

Joking aside, there is a reason for this unseasonal weather. Prof Sir John Beddington, the UK government's chief scientist is quoted in the news today saying that there is already enough CO2 in the atmosphere for there to be more floods and droughts over the next 25 years. Because the planet’s climate system operates slowly, there are long delays in CO2 level rises in the atmosphere. This means weather patterns we’re seeing now are as a result of CO2 emissions emitted more than 20 years ago. Governments across the globe are just not meeting Green House Gas reduction targets. We need to accept the fact that we will see more and more weather anomalies over the next 20 to 30 years.

"The [current] variation we are seeing in temperature or rainfall is double the rate of the average. That suggests that we are going to have more droughts, we are going to have more floods, we are going to have more sea surges and we are going to have more storms.”

Do something NOW for your children and your grandchildren

We should all be making an effort to reduce our carbon footprint. In our personal lives we have a responsibility to our children and our children’s children. Whether it is recycling, driving less or driving a smaller car, flying less or just consuming less stuff. We basically need to be less selfish and less consuming.

But what about at work?

Does your organization take measures to reduce its environmental impact? In our office, we recycle pretty much everything now. We underwent an office refurbishment project a couple of years ago, and in the process, energy saving lighting was installed and carpets made from recycled bottles was laid. We also use our own power management solution for shutting PCs down at the end of the day and at weekends. This is a very simple and effective way of reducing CO2. After all, why should a device be left on when no one is using it, you wouldn’t do that at home. Sadly some people just don’t care when they are not paying the bills and for their own convenience they chose to leave their PC on. Well guess what? There is a way to switch devices off and it won’t inconvenience users.

Read about power management with NightWatchman Enterprise

You, as an employee have the power to influence and make a positive difference to our future.

Michelle Hazelton | Product Manager, 1E

1E Blogs

Patch Tuesday – hell for IT admins and end-users

After reading a recent Register article (Microsoft preps UPDATE EVERYTHING patch batch) it got me thinking. How many organizations actually manage the Windows update patching process to minimize impact on users? Microsoft will be delivering seven bulletins today, Tuesday 11 March, 2013. There’ll be many users grimacing at the sight of the Windows Update message in the coming few days, followed by a frustrating period of inactivity as our systems go through the update process and inevitable reboots. This is of course an essential part of systems management and to a larger degree users are expected to suck it up as companies are not likely to want to leave themselves vulnerable to security risks as an alternative to upsetting their users.

As a user who uses their laptop as a live notepad (i.e. all open docs, emails and browsers act as an item on my live to-do list and must be dealt with at some point this week). I find it insanely annoying when I have to save and close all items down and then try and remember what needs to be dealt with. I am the user that constantly chooses the ‘Remind me in: 4 hours’ option.

Windows 7 restart message after Windows update

In Windows 8, they’ve opted for a more forceful approach. After three days of reminding you your PC needs to restart to finish installing updates, it will just tell you it will restart in 15 minutes, so get your skates on and save your work before you lose it.

Windows 8 restart message after Windows update

It doesn’t have to be that way.

1E NightWatchman Enterprise has integrated patch management allowing you to gracefully apply patches overnight and reboot PCs to complete the patching process, minimizing disruption to user during the working day. And, it saves their open data prior to the reboot to further minimize disruption and annoyance.

NightWatchman has Wake-on-LAN technology built in to wake machines out of hours to apply patches. The key challenge is that not all power management solutions allow you to cleanly restart PCs after applying patches. The alternative (and often common) scenario means the user is forced to reboot during the working day to complete the cycle.

To assist with best practices around remediating and testing patches, NightWatchman groups PCs by organization and location meaning you can stage deployments by system groups and priority. You can starting with smaller, lower risk groups, validating that no problems occur with the updates, and then work your way to larger and higher risk areas of the network.

NightWatchman Enterprise is tightly coupled with, but not exclusively to, Microsoft’s System Center Configuration Manager (ConfigMgr) – 2003 to 2012 SP1 (read the technical brief here). It integrates with the ConfigMgr console for on-demand wake-ups and client policy refresh to a single client or a collection of clients and you can use group policy or command line to configure settings. NightWatchman also integrates with a number of other systems management solutions.

To learn more about NightWatchman Enterprise visit our website www.1e.com

Michelle Hazelton | Product Manager, 1E

1E Blogs

Microsoft System Center 2012 Configuration Manager and 1E NightWatchman® Enterprise

We are pleased to announce that NightWatchman Enterprise 6.1 is fully compliant with Microsoft System Center 2012 SP1 Configuration Manager (ConfigMgr). NightWatchman was also tested with Windows Server 2012 and SQL 2012, no issues were found.

NightWatchman Enterprise will be fully compliant with Windows 8 in version 7, scheduled for mid-April.

We will officially support ConfigMgr SP1, Windows Server 2012 and SQL 2012 and Windows 8 in version 7.

Together System Center 2012 Configuration Manager and 1E NightWatchman provide best-of-breed server and PC power management for enterprises

This highly comprehensive solution benefits the whole organization, not just administrators, users or senior management. It works for PCs and Servers, which together comprise 60% of total IT power consumption. Together, NightWatchman from 1E with System Center 2012 Configuration Manager form the industry-leading power management and patching solution. With advanced features such as enterprise wake-on-LAN, document save and safe reboot, you can be sure that PCs and laptops will receive updates with the highest degree of success possible.

NightWatchman® Enterprise accurately reports on savings and emissions so that you not only save power you can prove it as well.

Read the technical brief here

To speak to an energy efficiency expert or request a trial please complete the form on our website.

Technical brief document

 

 

 

 

 

 

 

 

Michelle Hazelton | Product Manager, 1E

1E Blogs

NightWatchman Enterprise Saves Power and CO2. Fact.

As the recently appointed Product Manager for 1E NightWatchman Enterprise, I’d like to introduce myself and to talk about some issues that are prevalent in all of our lives today. As 1E’s flagship sustainability solution, you may already be aware of how NightWatchman Enterprise can help mitigate CO2 from IT and help lessen the impact organization have on our world. I’d also like to give an insight into some of the new and exciting features we have coming up in the next release of NightWatchman Enterprise.

Pike Research has predicted that software solutions aimed at cutting wasted power from servers and PCs will save organizations $18.6bn / £11.5bn per year by 2015, a nearly five-fold growth from 2011.

Energy prices are continually rising, fact. The adoption of Cloud Computing is driving up internet usage and in turn data center power consumption. Legislation is likely to add to energy prices in the form of carbon taxes. The UK has been the first to introduce a cap-and-trade scheme (CRC Energy Efficiency Scheme) but legislation is sure to be introduced around the world in the coming years, enforcing better management of energy consumption in business. These will be the key drivers for the adoption of power management in the next few years.

IT is responsible for more than 6% of global electricity consumption[i]

NightWatchman Enterprise saves energy and CO2. Unlike most other software claiming to save you money, NightWatchman Enterprise really does, simply by powering down PCs out of hours so they don’t consume energy unnecessarily. For a typical 10,000 PC estate this means:

  • Expected savings are $194k / £123k a year
  • A reduction in CO2 of 836,000 tonnes. This is equivalent to the yearly emission from 174,000 cars or the annual electricity consumption for 125,000 homes
  • Typical ROI in 6 months.

Our user-friendly approach means that users are not impacted by enforced power management. If users are still active at the scheduled power down time then NightWatchman Enterprise backs off until the computer becomes inactive. Prior to shutdown, users’ open documents are saved.

NightWatchman Enterprise is uniquely suited to large, complex enterprise environments. Its secure enterprise class power management is proven to scalable to more than 300,000 PCs. Many well-known and successful companies have trusted 1E to help them reduce energy costs and CO2.

But that’s not all; we add value in other areas too…

The Roadmap for 2013 is exciting; the NightWatchman team have sought inspiration from the cumulus skies over the past few months and have been working hard to deliver a solution to enable NightWatchman in the Cloud.

We’ve also been putting our thinking caps on – imagine, in the wake of BYOD, if you could identify all unused computers in your organization and be able to remove them? The potential cost reductions around hardware, energy and software licenses could be vast…more on this very soon. Watch this space!

If you'd like to learn more about NightWatchman Enterprise please contact us at info@1e.com

Michelle Hazelton | Product Manager, 1E

1E Blogs

Europe’s Energy Efficiency Economy

After a series of events in Brussels in April, is Europe now ready to commit to energy efficiency for 2020? The EU Sustainable Energy Week (EUSEW) organized over 700 events across Europe to show, promote, discuss and celebrate energy efficiency and renewable energy.  There were a number of events held in Brussels attracting 30,000 attendees, including a 3-day policy conference organized by the European Commission where they announced the next steps to deploy smart grids throughout Europe. The Alliance to Save Energy (ASE) and the European Alliance to Save Energy (EU-ASE) co-hosted the Energy Efficiency Global 2011 as an official EUSEW side-event. The Energy Efficiency Global Forum (EE Global), now in its fourth year, is a launching pad for ideas that change the energy landscape, bringing together high-level officials from government, business and NGOs.

EU targets

Europe 2020 is a set of five ambitious objectives – on employment, innovation, education, social inclusion and climate/energy – to be reached by 2020.  The aim is for the EU to become a smart, sustainable and inclusive economy enabling EU and the Member States to deliver high levels of employment, productivity and social cohesion. Climate Action, EU action against climate change is an integrated energy and climate change policy. The goal is to set Europe on the right track towards a sustainable future with a low-carbon, energy-efficient economy by:
  • cutting greenhouse gases by 20% (30% if international agreement is reached)
  • reducing energy consumption by 20% through increased energy efficiency
  • meeting 20% of our energy needs from renewable sources.

EU not set to reach 2020 target

In 2006 the European Commission adopted an Action Plan for Energy Efficiency with the objective of controlling and reducing energy demand, and to take targeted action on consumption and supply in order to save 20% of annual consumption by 2020. Although substantial steps have been taken towards this objective (mainly in the appliances and buildings sector), recent Commission estimates suggest that the Union is actually only on course to achieve half of the desired savings. It is therefore essential for the EU to act now to get back on track to achieve the 2020 targets.  The Commission has recently published a comprehensive Energy Efficiency Plan which aims to provide a holistic approach to identifying and realizing the savings potential. The Commission has outlined a two-step approach to targeting in the 2011 Energy Efficiency Plan. The first stage will assess the national energy efficiency targets and programmes set by Member States and how they might contribute to the overall EU target. In 2013, the Commission will provide an assessment of the results obtained and whether the programmes will deliver the European 20% objective. If the 2013 review shows that the overall EU target is unlikely to be achieved, then as a second stage the Commission will propose legally binding national targets for 2020.

The biggest culprits

With nearly 40% of final energy consumption being in houses, public and private offices, shops and other buildings, the greatest energy savings and energy efficiency potential can be achieved through the renovation of this existing building stock. Office buildings consume the most energy of all commercial building types.  Lighting is the biggest consumer of electricity followed by office equipment.

office building energy use

There are tried and tested solutions available today to help reduce the 24% electricity consumption of office equipment.

Cut PC energy by 40%

PCs and monitors use almost three quarters the energy of all office equipment.  For offices where the majority of PCs and monitors are left switch on overnight and at weekends a 40% reduction in energy consumption is achievable with PC and laptop power management. 1E’s NightWatchman® is a scalable, proven solution enabling organizations to safely and remotely power down PC’s overnight, significantly reducing energy consumption and their impact on the environment. For example, an organization with 10,000 PCs: Achieving a 40% reduction in energy consumption from 10,000 PCs would yield savings of 1,800 tonnes of CO2 emissions, equivalent to the carbon absorbed by 42,000 trees and a total cost reduction of €353,000 per annum on electricity¹.

15% of servers are doing nothing!

Similarly, power consumption of servers can also be reduced.  NightWatchman® Server Edition is the key to making data centres and servers more efficient by reducing power consumption and redundant infrastructure and by avoiding future capital spending on new hardware. NightWatchman Server Edition measures power usage and activity across both physical and virtual Windows and UNIX / Linux servers. It provides continual analysis on how much power is being used by business applications and how much is being wasted on idle or non-productive work. Useful Work™ tracks the productivity of physical and virtual servers, reporting on how much power is being wasted by idle or unproductive processes and comparing that with power consumption by business applications. If the server is busy doing the task for which it was bought and provisioned, then it is performing useful work; if it is busy doing anything else, however important, then it is performing non-productive work. For example, a SQL Server doing SQL processing is performing useful work since users and/or applications will typically access SQL. The same server performing self-maintenance tasks such as Anti-Virus scanning, Indexing, or Back-up, although important, is not doing useful work since it is not directly serving end users. In the findings of the 1E / Alliance to Save Energy independently commissioned research, the Server Energy & Efficiency Report, it was found that up to 15% of servers are not doing anything useful and can therefore be decommissioned or repurposed. For example, an agency with 10,000 PCs would require approximately 1,000 servers. Achieving a 15% reduction in servers (150) will deliver savings of $3,053² per decommissioned server in management and administration costs, equating to an immediate savings of €457,950, and will reduce CO2 emissions by 572 tonnes.   This is equivalent to the carbon absorbed by 14,700 trees, and results in an additional cost reduction of €126,144 per annum on electricity³. Drowsy Server® dynamically controls energy consumption and costs when no useful work is being performed, while keeping the server available if it is needed, savings from using Drowsy Server can be up to 12%. A nominal 33% – 50% of a Server estate is readily capable of achieving a 12% reduction in energy consumption. From the remaining 850 servers this would yield savings of approximately 195 tonnes of CO2 emissions, equivalent to the carbon absorbed by 5,000 trees and a subsequent cost reduction of $42,889 per annum on electricity4. Employing both Useful Work and Drowsy will bring the total savings to approximately 846 tons of CO2 with a total cost reduction of $801,000 per annum in electricity, management and administration costs5.

Act now

The message is clear, energy saving through energy efficiency is the most cost effective way to enhance security of supply and at the same time to reduce emissions. This translates to doing more with what you currently have.  The technology is available today to manage the power consumption of PCs and servers, offering organizations across Europe massive saving. All of which will help contribute to Europe’s 2020 targets of cutting greenhouse gases by 20% and reducing energy consumption by 20% through increased energy efficiency. Act now before the impending doom of the 2013 legally binding targets. Speak to an IT efficiency expert today! Endnotes 1: PCs = average 84Watts 0.084kW x 24hr x 365days = 735.84kWh x 10,000 PCs = 7,358,400kWh 7,358,400kWh x 0.544kg CO2 = 4,002,970kg / 4,003 tonne CO2 (40% = 1,601 tonne CO2) 7,358,400kWh x €0.12 electricity = €883,008 (40% = €353,203) 2: $145,000M / 33,000,000 servers = $4,400 / €3,053 per server (1USD = €0.69) (In 2008, approximately $145,000M was spent on new server spending and management and administration of 33M servers, according to IDC report: “Optimizing Infrastructure and Server Management in Tough Economic Times”) 3: (400 watts/server is according to Gartner study referenced above: “U.S. Data Center Conference Focuses on How to Do More With Less,” Gartner, June 2, 2009) (energy cost for running unused servers continuously for a year + cooling cost for running unused servers continuously for a year assuming a Power Usage Effectiveness value of 2, according to EPA average PUE 2.04, 2006) Server = average 400Watts 0.4kW x 24hr x 365days = 3,504kWh x 150 servers = 525,600kWh 525,600kWh x 0.544kg CO2 = 285,926kg x 2 for PUE = 571,853kg/ 572 tonne 525,600kWh x €0.12 electricity = €63,072 x 2 for PUE = €126,144 4: Physical server = average 400Watts 0.4kW x 24hr x 365days = 3,504kWh x 850 servers = 2,978,400kWh 2,978,400kWh x 0.544kg CO2 = 1,620,250kg x 2 for PUE = 3,240,499kg/ 3,240 tonne CO2 (12% = 389 tonnes CO2 ÷ 2 for 50% of servers power managed = 194.50 tonnes CO2) 2,978,400kWh x €0.12 electricity = €357,408 x 2 for PUE = €714,816 (12% = $85,778 ÷ 2 for 50% of servers power managed = €42,889) 5: 572 + 195 = 767 tonnes CO2 €457,950 + €126,144 + $42,889 = €626,983

Europe

After a series of events in Brussels in April, is Europe now ready to commit to energy efficiency for 2020? The EU Sustainable Energy Week (EUSEW) organized over 700 events across Europe to show, promote, discuss and celebrate energy efficiency and renewable energy. There were a number of events held in Brussels attracting 30,000 attendees, including a 3-day policy conference organized by the European Commission where they announced the next steps to deploy smart grids throughout Europe. The Alliance to Save Energy (ASE) and the European Alliance to Save Energy (EU-ASE) co-hosted the Energy Efficiency Global 2011 as an official EUSEW side-event. The Energy Efficiency Global Forum (EE Global), now in its fourth year, is a launching pad for ideas that change the energy landscape, bringing together high-level officials from government, business and NGOs.

EU targets

Europe 2020 is a set of five ambitious objectives – on employment, innovation, education, social inclusion and climate/energy – to be reached by 2020. The aim is for the EU to become a smart, sustainable and inclusive economy enabling EU and the Member States to deliver high levels of employment, productivity and social cohesion. Climate Action, EU action against climate change is an integrated energy and climate change policy. The goal is to set Europe on the right track towards a sustainable future with a low-carbon, energy-efficient economy by:
  • cutting greenhouse gases by 20% (30% if international agreement is reached)
  • reducing energy consumption by 20% through increased energy efficiency
  • meeting 20% of our energy needs from renewable sources.

EU not set to reach 2020 target

In 2006 the European Commission adopted an Action Plan for Energy Efficiency with the objective of controlling and reducing energy demand, and to take targeted action on consumption and supply in order to save 20% of annual consumption by 2020. Although substantial steps have been taken towards this objective (mainly in the appliances and buildings sector), recent Commission estimates suggest that the Union is actually only on course to achieve half of the desired savings. It is therefore essential for the EU to act now to get back on track to achieve the 2020 targets. The Commission has recently published a comprehensive Energy Efficiency Plan which aims to provide a holistic approach to identifying and realizing the savings potential. The Commission has outlined a two-step approach to targeting in the 2011 Energy Efficiency Plan. The first stage will assess the national energy efficiency targets and programmes set by Member States and how they might contribute to the overall EU target. In 2013, the Commission will provide an assessment of the results obtained and whether the programmes will deliver the European 20% objective. If the 2013 review shows that the overall EU target is unlikely to be achieved, then as a second stage the Commission will propose legally binding national targets for 2020.

The biggest culprits

With nearly 40% of final energy consumption being in houses, public and private offices, shops and other buildings, the greatest energy savings and energy efficiency potential can be achieved through the renovation of this existing building stock. Office buildings consume the most energy of all commercial building types. Lighting is the biggest consumer of electricity followed by office equipment.

office building energy use

There are tried and tested solutions available today to help reduce the 24% electricity consumption of office equipment.

Cut PC energy by 40%

PCs and monitors use almost three quarters the energy of all office equipment. For offices where the majority of PCs and monitors are left switch on overnight and at weekends a 40% reduction in energy consumption is achievable with PC and laptop power management. 1E

Green IT: Good for business, good for the environment

So what is the main driver for developing a Green IT strategy?  Is it for the green image?  Is it driven by the green advocate from within?  Or is it because the organization genuinely cares about the ever-increasing carbon footprint generated from the use of IT?

Sadly, it would seem that the main driver is not motivated by good intentions, but by the increasing cost of energy to business to meet growing computing demand and the capital cost of data centers, according to Kenneth Brill, Founder of the Uptime Institute.

The truth is, something has to be done before we run out of power.  By 2011 data centers will consume 3% of electrical energy, three times what it was in 2000.  In Ken Brill’s words “It's time that the nation's business and government leaders publicly commit their organizations to make enterprise IT and data center energy efficiency a strategic-level priority and set aggressive and quantitative goals for rapid improvement.”

The surprising thing is many C-level executives (for example CIO, CTO, CEO) still don’t understand the significant savings that can be made through the implementation of some relatively simple green strategies.  [Look out for my future blog: Quick Wins For A Green Data Center Strategy]  A greater understanding is required of where energy is being consumed and wasted in IT in order to make informed decisions to reduce costs and carbon, enabling organizations to move forward and make improvements.

The message is simple, by increasing efficiency, reducing energy consumption and complying with future regulation (UK: Climate Change Levy, US: Cap-and-Trade), your green strategies will offer costs savings benefits while transforming your organization.

[Read my carbon tax blogs for more information on the Climate Change Levy and Cap-and-Trade Program]

In a survey conducted by IBM & Info-Tech Research, 60% of respondent companies had realized benefits from Green IT in terms of decreased electricity and consumable use, decrease in investment, an increase in features and functionality and in meeting customers’ demands.  Companies have also realized rebates from utility companies or Government.

So now that it’s been recognized and proven that green is good for your business and for your bottom line, it’s time to stop talking about it and start doing it.

Understanding US Government Carbon Tax: Cap-and-Trade

A data center with 1000 servers running at 13% utilization with a Power Usage Effectiveness (PUE) of 2 will be producing approximately 2000 metric tons of CO2 per year. If we estimate that each Cap-and-Trade permit (per metric ton) will cost $15, a 1000 server data center will pay $30k in Cap-and-Trade taxes per annum.

The goal of Cap and Trade is to reduce greenhouse gas emissions including carbon dioxide throughout the economy using cost effective methods. The program is yet to be finalized.

What is The Cap?

Large emitting companies will have a limit on the amount greenhouse gases they can emit. Each ton of GHG emitted by the company must be covered by a permit. The number of permits will be reduced over time allowing less pollution until the crucial reduction goal is met.

What is The Trade?

A set number of permits are issued per year ensuring that the overall reduction of greenhouse gases is achieved. Efficient companies who successfully emit less than their target can then trade their remaining permits to companies who are not able to reduce their emissions, acting as a reward for the efficient companies.

What is a successful program?

A successful Cap-and-Trade program would limit the rise in global temperature to approximately 2.0 degrees Celsius / 3.6 degrees Fahrenheit above pre-industrial levels by 2050 as part of a larger plan to abate global warming. In order to achieve this, US Government will have to lower the cap until emissions are reduced to 80 percent below 1990 levels by 2050. Initially the government would auction off the permits for around $10 to $15 per metric ton of CO2 or its equivalent.

The program is initially estimated to generate in the region of $50 billion rising to $300 billion. Revenues are expected to be used to help offset costs to businesses and shareholders of affected industries and to help low to middle income Americans cover the cost of energy price increases which may occur as a result of the switch to renewable energy sources. It will also be used in the development of green technologies and trading.

Recommendations for Reducing Carbon and Taxes:

Employ the use of a reporting tool for measuring and monitoring energy use and sever efficiency. This will aid decisions such as decommissioning underutilized servers and the reallocation of workloads to use servers more efficiently, all of which will decrease energy consumption including cooling costs, reducing your overall carbon emissions.

clip_image001Lower carbon emissions = Lower taxes


Technorati Tags: Green IT,Green Data Center,Carbon Tax,Cap and Trade,Server Power Management

The UK Tax Implications of High Energy Usage in Data Centres

A data centre with 1000 servers running at 13% utilization with a Power Usage Effectiveness (PUE)  of 2 and an energy rate of 0.12p per kWh will pay £18k in CCL taxes per annum.

The following is a summary of UK Government legislation for energy and climate change.

Climate Change Levy (CCL) 

Introduced on 1st April 2001 the CCL is a tax on the use of energy in industry, commerce and the public sector. The levy applies to industrial and commercial energy supplies in the following sectors: industry, commerce, agriculture; and public and service sectors.

Taxable commodities and rates:

Taxable commodity

Rate

Electricity

£0.00456 per kWh

Gas supplied by a gas utility

£0.00159 per kWh

Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state

£0.01018 per kilogram

Any other taxable commodity

£0.01242 per kilogram

Source: http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageExcise_InfoGuides&propertyType=document&id=HMCE_PROD1_027235

Department of Energy & Climate Change (DECC)

The DECC was created to bring together energy policy with climate change mitigation policy. Climate change and energy policies are inextricably linked – two thirds of our emissions come from the energy we use. Decisions in one field cannot be made without considering the impacts in the other.

Carbon Reduction Commitment (CRC)

Starting in 2010 CRC is for all businesses not covered by a climate change agreement (see below) and the EU Emissions Trading System (See below). The policy has been developed with DECC, Energy Act 2008 and the Climate Change Act 2008. An estimated 20,000 organizations will be affected by the scheme and failure to comply will result in penalties.

How does it work? (Proposed)

  • CRC will cover organizations with an annual energy bill of > £500k

  • All energy other than transport fuels is included in the figure

  • Carbon allowances will be allocated by auction

  • Annual allowances will reduce over time

  • Participants may be able to buy EU ETS credits to comply with emissions cap (see below)

  • League tables published outlining best and worst performers in terms of carbon emission and reductions

  • Self certification of monitoring, reporting and verification of emission

  • Backed by independent risk based audit regime

European Union Emissions Trading System (EU ETS)

The rationale behind emission trading is to ensure that the emission reductions take place where the cost of the reduction is lowest thus lowering the overall costs of combating climate change.

How does it work?

  • Government allocates (free) emissions allowances to participating companies
  • If the company goes over their allowance they can purchase additional allowances from the market
  • The additional allowances are sold by companies who have emitted less than their original allocation of allowances

Emissions trading gives companies the flexibility to meet emission reduction targets according to their own strategy; for example by reducing emissions on site or by buying allowances from other companies who have excess allowances. The environmental outcome is not affected because the total amount of allowances allocated is fixed.

Energy intensive sectors

Energy intensive sectors are a wide range of industrial sectors, from major energy intensive processes such as steel, chemicals and cement, to agricultural sectors, such as intensive pig and poultry rearing.

Climate Change Agreements (CCA)

Climate Change Agreements (CCAs) allow eligible energy intensive business users to receive up to an 80% discount from the CCL in return for meeting energy efficiency or carbon saving targets set by the Government.

CCAs have a two-tier structure:

  • A sector-level agreement between Defra and the sector or trade association (known as an umbrella agreement)

  • Individual agreements between Defra and the operator of the facility (known as underlying agreements).

Targets are set on a company by company basis and must be met in order to receive the discount.

Recommendations for Reducing Energy and Taxes:

Employ the use of a reporting tool for measuring and monitoring energy use and sever efficiency. This will aid decisions such as decommissioning underutilized servers and the reallocation of workloads to use servers more efficiently, all of which will reduce overall energy consumption including cooling costs.

clip_image002Lower overall energy consumption = Lower taxes