Green Light

But after his spectacular back-pedalling over fuel prices, he is a man in desperate need of appearing "green". In fact, the whole Government is. And, it seems, they're taking the matter very seriously indeed.

The most significant measures are the Climate Change Levy (CCL), scheduled for April this year and, for non-domestic sector fuel bills, a hike of 0.43p/kWh on electricity and 0.15p/kWh on gas.

UK industry has been bracing itself for this new tax for a couple of years. But for electrical contractors, the CCL may be an unexpected boon, as companies clamour for new, more efficient building services – especially lighting, which accounts for some 20% of UK electricity use.

The Electrical Contractors' Association (ECA) was quick to stress that the purpose of the CCL is to encourage the efficient use of energy, not to raise tax.

The ECA thinks that the CCL will provide opportunities for electrical installation services. Energy, particularly electrical energy, is going to cost more, but tax incentives should be available in the form of 'enhanced capital allowances' to encourage investment in energy saving equipment.

The allowance scheme will be finalised soon, but Brown announced in his recent mini-budget that the scheme will offer a 100% first year allowance for selected energy efficient technologies.

Many energy specialists are getting genuinely excited. Anthony Heywood is manager of Lightswitch, the Energy Saving Trust's scheme to increase the amount of energy efficient lighting used in small and medium-sized firms.

"The increase in fuel bills will lead to shorter payback times for energy efficient measures and will increase end-user interest," says Heywood.

For contractors and installers, the prospects are excellent.

Heywood explains: "The levy offers opportunities for installers to help their clients reduce fuel bills by installing energy efficient measures. First, by value-added work for new users; second, pro-active installers can promote the benefits of upgrades to existing clients.

"Lighting allowances include both product and installation costs. End-users are likely to place the responsibility for ensuring that their project qualifies for an allowance on their installer. It is very important that installers put time into finding out about the levy and the new allowances so that they are fully informed and at least keep up with the competition." But what impact will the scheme have on equipment choice? Heywood continues: "End-users will demand only those products that qualify for allowances [see box]. Even those organisations that cannot benefit from the allowances will start to use the specifications in their procurement procedures." The government's specification has been set to accelerate the transformation of the UK lighting market in favour of more efficient products. It provides generic descriptions of lighting products or product combinations of high energy efficiency, particularly those where the market penetration is low (due to cost, purchasing habit or lack of awareness).

The products that meet these criteria are capable of providing requirements for 85% of lighting in the non-domestic sector. Lighting controls are included to facilitate and encourage appropriate limitation of lighting installation use.

Performance benchmarks, in terms of energy efficiency requirements, have been defined for all product descriptions listed. These benchmarks are supported by the development of a system for overall installation efficiency appraisal.

According to the Government's web site on enhanced capital allowances (www.eca.gov.uk): "The use of products that meet the criteria in preference to the use of alternative products comprising the bulk of the UK lighting market, offers overall potential for energy saving in excess of 30%." Ernest Magog, director of the Lighting Industry Federation, whose members' equipment will be used in the scheme, is in no doubt that the scheme will have a massive impact: "The ccl is intended to cause clients to think about instituting electricity saving measures, like replacing their old lighting equipment.

"Contractors should add their weight to the cause by pointing this out to clients, past and present, and steering them towards the most efficient installation."