SMS Energy Desk - Raising the Alarm
27 October 2020, News release from SMS Plc
The current trend in exception reporting has left energy managers across the country with inboxes full of so called "alarms". These often relate to insignificant events such as the cleaners arriving half an hour earlier than usual one day and simply aren't worth deliberation. The real issue is that this often results in the exceptions that provide a financial benefit being lost in the noise.
One of the first steps taken by an organisation that has decided to monitor its energy consumption is to set up an alert based exception reporting process. The alarm thresholds are usually determined through one of the following methods:
- Benchmarking - Alarms can be set through industry standards or floor area comparisons. These methods will provide a reasonably accurate threshold but would an exception be reliable enough to warrant a site visit?
- Profile Analysis - Each site's daily consumption profile is analysed to determine an accurate level of expected consumption. However, unless this time consuming process is repeated on a regular basis the thresholds soon become out of date.
Once the thresholds are in place, you will then inevitably be bombarded with hundreds of emails relating to issues that have very little financial impact on your organisation. The solution? Most choose to increase the thresholds and risk ignoring sites that are consistently breaching at a low level. However, wouldn't it make more sense to consolidate your alarms into a digestible format on a weekly basis, prioritising sites by their excess cost? This is where SMS can help.
SMS have developed an advanced energy analytics system that will monitor each site's performance over the course of the most recent 7 days and provide the excess cost to your organisation caused by each exception. By prioritising the most financially significant opportunities, the offenders can be targeted for remedial action.
Concerned you won't receive an alert as soon as the exception takes place? No need to worry, a 7-day turn around period provides enough time to determine that an exception is valid and worth pursuing but not too long that it becomes costly to your organisation.
Optimum Performance Analysis
For the reasons provided above, SMS don't use traditional exception reporting methods. Instead, we use a technique that has been developed in house called 'Optimum Performance Analysis' whereby site specific historical consumption data combined with weather information is used to accurately predict expected consumption per half hour. Any exceedance of this threshold can be deemed as over consumption providing a realistic excess cost. Once a remedial action has been implemented, such as a more efficient heating and cooling system, the site can be re-baselined to reflect its improved performance.
The result is a league table style report informing you of exactly how much each site in your portfolio has cost you in excess energy consumption during the most recent week, month or year. By the time other energy managers have made it to alarm 1,385 in their inbox you've implemented the resolution and have begun to reduce your overall energy bill.
For more information, contact us today on 02920 739 540 or email us