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Energy Management Systems – Integrating Energy into the Accounts

Energy Management Systems - Electricity Bill

One of the quickest ways to start to control energy use is to integrate reporting into the accounts package (along with all the other vital business numbers). Energy use and management is not a ‘technology fix’, it is a vital business measurement and tool. Some of the most effective energy management efforts can come directly from the accounting function. 

Accountants are familiar with calculating the total costs for a site from the fixed and variable components, where: Total cost = (Production volume x unit variable cost) + Fixed costs. The use of a similar approach for energy management will hold no surprises for most accountants. This allows energy management to be treated as with any other cost element.  

The aim is to achieve cost-effective energy management. Integration of energy reporting into the accounting function allows energy to take its place on the management agenda as a part of the normal management of the site. 

Action: 

  • Get the accountants involved in recording, verifying and publishing the numbers for energy use. 
  • Get the accountants to treat energy use as a variable cost that can be allocated directly to the process and area involved. 
  • Energy costs can affect product profitability – make sure they are allocated correctly. 
  • Get the accountants involved in project assessment – they can help with the numbers. 

Dr. Robin Kent is the author of ‘Energy Management in Plastics Processing’, published by Elsevier and Managing Director of Tangram Technology Ltd. (www.tangram.co.uk ), consulting engineers for energy and sustainability management in plastics processing. 

Also read Energy Management Systems – Getting Started.

By Robin Kent | December 7, 2023

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