Electricity is passed on from the supplier to the consumers in this manner: energy is generated in a remote location and pushed to homes and businesses, where humans make most of the decisions about what switches are turned on and off. In a typical business setting, energy management can be broken down into three (3) components – Management, Procedures and Knowledge, and the Technology used by the entity.
Technology and Equipment, through which companies consume energy provided by external sources, is controlled and handled by management through company energy management policies and procedures. Management commitment is critical in an effective energy management strategy, as it (leads the whoel group) For energy management to be successful and sustained, it must be seen as an important aspect of how the organisation operates and be supported at the highest level. A suitable energy policy is the center for best practice in energy management.
Developed by people knowledgeable in the topic, an effective policy needs to be directly relevant to the organisation and appropriate to its nature and size. It should provide a clear focus for the organisation’s objectives and be the formal expression of the senior management’s commitment to, and ownership of, the issues. It should provide workable principles to guide the organisation’s energy strategy. It is also necessary for the company personnel to be knowledgeable about its energy management polices and must understand clearly what it is, why it is needed, what the benefits are, what it will cost. Carbon dioxide emissions from energy use will dominate total greenhouse gas emissions for most organisations, so energy management is a key component of an organisation’s overall environmental management as well.
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Leadership and responsibility – the role of senior management The commitment of senior management is the foundation of an effective energy management system. Energy management should not be merely ‘tacked on’ to existing operations. An organisation must have clear energy performance objectives and allocate sufficient resources to implement and manage the system if it is to succeed. Communicating the commitment of senior management and the resources that have been assigned establishes energy management as an important priority at all levels of the organisation.