#Review tech utilities how to#
The role would focus on cutting costly inefficiencies, figuring out how to use energy to deliver business outcomes, and then implementing these approaches.Īs a technology advisor, the CUO would understand the benefits of different energy innovations and be able to make smart purchasing decisions. One solution is to appoint a Chief Utility Officer, who can centralize decision making around utilities and rethink its role to support strategic corporate goals. Every dollar saved in utility costs becomes an additional dollar of net profit. The marginal effect on profit through reducing utility costs can be significant. Eliminating the 30% of unnecessary consumption can improve profitability, reduce equipment downtime, become a competitive differentiator, and lower carbon emissions. Yet the benefits of smarter utility consumption go beyond just a smaller bill. Why doesn’t he treat energy as a critical resource as well?Ĭurrently, company management is not structured to do this and will therefore struggle to strategically handle these emerging challenges around energy. He treats flour as a critical resource tied to the bottom line. Think about a baker who uses flour to make bread. And as companies face increased public and regulatory scrutiny over environmental concerns, finding ways to manage utilities effectively has become more urgent it will involve starting to manage energy as a strategic resource instead of as an expense. states with deregulated power markets) and technologies (e.g., solar and home batteries) for businesses to consider. There are all kinds of new energy providers (especially in U.S. Managing utilities has also become more complex as the energy landscape has evolved. For example, the finance department approves what to buy, facilities maintains equipment, HR tells employees how to conserve energy, and marketing manages the company’s corporate sustainability reporting. However, overspending is often the result of decentralized and siloed decision making over the utility budget. You’d think that increasingly sophisticated technology would help reduce this waste. For many businesses, this is equivalent to overspending on energy by that amount to achieve current production levels.
Environmental Protection Agency (EPA) has reported that companies waste 30% of the energy they consume.