Actualités

Eurhotec 2001
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Reducing utility consumption and costs

Reiner Boehme, Vice President Engineering and Technical Standards, Bass Hotels & Resorts

In the ten year period 1989-1999, Inter-Continental Hotels & Resorts saved $25,6 million (27.3%) from environmental management. Annual costs of energy and water consumption in the period amounted to $73 million (in 92 hotels). The following approaches were an integral part of the process.

Benchmarking performance
w Total water consumption (Litres per guest)
w Total electricity consumption (Kwh/M_)
w Total net energy consumption ­ gas, fuel, heating (Kwh/M_)
w Total water consumption by area (litres per cover, per kg of laundry)

Benchmarking enables you to determine the potential for savings and detect waste. When converted into money terms, staff soon understand their importance. For example, the kitchen in the hotel in Yokohama in Japan was wasting $500,000. With benchmarking, it cut down waste in 6 weeks by 40%. As a general rule, all hotels are allowed to invest in energy management equipment that pays back within one year ­ whether or not it is budgeted for ­ because of the instant benefit to the bottom line.

Recommended actions
w Involve all staff - capitalize on their knowledge of the hotel
w Concentrate on core business and outsource support functions
w Centralise operations (eg kitchens)
w Retrofit lights throughout the hotel - motion detectors, timers, photocells, keycard master switches in guestrooms, split wiring circuits, have switches in convenient locations, reduce, relocate, remove
w Put variable frequency drives for air-conditioning, ventilation, pumps ie. don't move more water or air to satisfy the load ­ there's a fortune to be saved especially in new-builds, and renovations
w When renovating, use the latest technology available eg dishwashers, chillers ­ which should be 30% more energy and water efficient than before
w Use flow control for taps, showerheads, multiple-flush toilets, waste water and heat recovery from air-conditioning, from washing machines and refrigeration equipment
w Negotiate better utility rates
w Benchmark your total consumption and individual departments if sub metering is available ­ then charge departments for their consumption
w Implement energy conservation projects with payback periods of less than 3 years. (Solar panels and heat pumps are too long ­ 15 and 7 years)
w Shut off what is not required (check it at night ­ you will be surprised what's running!)
w Deregulation of utilities in EU ­ check out the potential savings to be made (see below)

EU deregulation of utilities
w The 'Internal Market for Electricity Directive' (1996 and 1992) was the first major step to creating an open market in Europe.
w Since February 1999 some member states have opened over 25% of their markets to free competition ­ which means lower prices for all.
w Already deregulated are UK, Sweden, Finland, Norway and Germany.
w Phase one is in process in Italy.
w Deregulation will occur by 2007 in Ireland, Greece, Belgium, Netherlands and Spain.
w EU member candidates are also preparing ­ Poland, Hungary, Malta, Lithuania, Estonia.
w France is unwilling to comply.
w In August 2000, the deadline for gas deregulation expires.

How to take advantage of utility deregulation
w Think about the implications for their capital investments strategy of the impact of forthcoming changes in utility prices.
w Check the status of deregulation in your country.
w When it happens, don't accept the first offer or get tied to long contracts. Wait until effective competition becomes a reality.
w Explore the market ­ companies will spring up and vanish.
w Establish who are the big players ­ negotiate only with reputable suppliers.
w Carefully study all available options.
w Know your own consumption profile (peak demand, fluctuations, monthly consumption) for negotiation purposes.
w Ensure delivery is guaranteed. The market is dividing into power generation/transmission costs/service charges for metering. Get estimates for all 3.
w Buy in bulk. Consolidate your purchasing power with other hotels/within a chain or via an association.
w Exclude penalties in case you exceed contracted consumption and peak.
w Get legal advice. Use internal or external legal help, but don't let them charge commission on savings made.


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L'HÔTELLERIE Eurhotec Special Issue 8 February 2001


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