Energy consumption is an increasingly significant issue for businesses for a number of reasons:

  • Electricity costs have increased by over 40% since 2007, and are likely to rise at least another 30% in 2013/14.
  • As a key source of CO2 emissions, energy consumption incurs additional costs through the Carbon Tax.
  • Dated transmission and distribution infrastructure is struggling under the dual challenges of increasing load growth and deteriorating asset condition, leading to reduced reliability of supply.
  • Greater transparency and corporate reporting focuses attention on a company’s energy consumption.
  • Larger organisations are subject to obligations to report energy consumption and investigate energy efficiency opportunities under the Energy Efficiency Opportunities Act (2006)

The energy efficiency of a building is therefore an important issue for tenants. Ultimately, a building that is more energy hungry than alternative offers in a market may let for less rent or take longer to let as tenants become aware that it is more expensive to occupy and more of a liability in terms of corporate reporting and CO2 emissions. Both tenants and owners need to be aware of the energy risks associated with a building.

Key issues to consider:

  • Typical annual energy costs of the building on a per m² basis.
  • The existing systems relating to energy consumption e.g. air-conditioning plant, lighting, renewable energy,  building management systems, energy metering.
  • The ability for the building’s energy efficiency to be improved.