The Casting Sector’s Negotiated Energy Agreement

Achieving the Individual Targets and Beyond

All foundries in the UK should now be aware of their responsibilities to sign up to the casting sector’s ten-year Negotiated Energy Agreement (NEA) with the Government. All foundries likely to come under EU IPPC (Integrated Pollution Prevention and Control) legislation are also aware of their ability to sign up to the agreement in order to show compliance with the energy element of the directive. However, the initial audit and the setting of targets are only the first step. A fundamental requirement is the implementation of a comprehensive Energy Management System, which once put in place will outlast the current Agreement.

UK Foundries affected by PPC, the UK embodiment of the European IPPC directive, are aware of their ability to sign up to the casting sector's ten-year Negotiated Energy Agreement (NEA). Most of these have arrangements in hand for an independent third party energy audit of their manufacturing operations. They have done this in the knowledge that providing the audit results are submitted to Target 2010 by the end of December 2000, they will receive an 80% discount against the Climate Change Levy (Energy Tax), to be introduced in April 2001.

 
With the audit focusing on foundry processes, it is not surprising that almost without exception the foundries concerned have turned to CDC for this work to be undertaken. Indeed, those few remaining companies yet to make up their minds are strongly urged to reach a swift decision if resourcing is not to become an issue.

EMS - the longer term solution
However, the current exercise does not finish with completion of the audit and the setting of targets to be achieved by 2010. A fundamental requirement of the NEA is the implementation of a comprehensive Energy Management System, which, once put in place, will outlast the current Agreement.

 
Energy management based on properly installed and administered monitoring and targeting systems is a proven approach leading to significant savings. It is particularly effective in energy intensive production environments such as iron foundries. Effective energy management requires a disciplined approach with commitment from senior management and the active involvement of line supervisors and responsible shop floor personnel. Recording systems must be simple to administer, capable of verification and analysis of data and its results easily understood. Achievable targets have to be set with information clearly and concisely disseminated to all involved personnel.

 
The purpose of the energy management system is to enable long term continuous improvement in overall company performance.

During the course of the initial energy audit it is only possible to introduce an embryonic energy management system with emphasis placed upon the development of an energy policy supported by objectives and targets (arising from the audit) and the designation of responsibilities for energy matters.

 
Following this, the onus is placed upon the company to introduce a formal, fully documented management system. Those foundries already registered to the Environmental Management Standard ISO 14001 are likely to have gained a significant head start.
 

With considerable experience in implementing both Energy and Environmental Management Systems CDC is ideally placed to support member companies.

For further information contact Roy Wootton at Alvechurch.