Could faulty heating equipment be costing big money?

As businesses look for ways they can reduce their costs and save money during the recession, they may be failing to take notice of something which could potentially be proving a significant drain on their resources.

Indeed, by making an investment into bringing a working premises' central heating system up to date, UK firms could find that the newer and greener technology allows them to lower their outgoings through reduced gas and electricity bills.

Insurance group RSA asserts that as the cold weather is now drawing in and Christmas is fast approaching, many office managers may feel under pressure from their employees to switch on the central heating in order to create a warm and more comfortable working environment.

However, some employers may be resisting calls to take this action in an effort to save on energy bills and with good reason, as RSA claims that old and faulty heating equipment could be costing organisations large sums of money.

It recommends that companies make an investment in a more modern and energy efficient system if they wish to boost their budgets.

The group is calling on UK businesses to make their workplaces more energy efficient, particularly as buildings contribute to 50 per cent of the country's carbon emissions, not to mention their running costs adding up to high utility bills.

Indeed, the firm claims that making simple, small changes could wind up saving businesses thousands of pounds every year, which could prove particularly useful to companies which are struggling amid the recession.

One of RSA's office buildings in Manchester had an energy audit carried out and by following the resulting recommendations it was able to save £6,000 and 36,171kg of carbon every year, simply by having a duct for its heating and ventilation system installed.

Alex Matthias, energy management leader at RSA, said: "When winter comes, many businesses turn on the heating and think nothing more about it. They could be wasting significant amounts of energy and money. Carrying out an energy audit could lead to significant savings in the long term."

He added: "As an energy audit provider and keen campaigner for reducing energy use, we want businesses to understand that minor changes to the property's heating and ventilation systems could not only save them thousands but could also play a significant part in reducing the UK's carbon emissions."

So what changes should businesses be making to their central heating systems in order to get the best return on their investment?

The Energy Saving Trust recommends that businesses and homeowners alike who have a new boiler with a full set of heating controls installed could find themselves saving £235 a year.

The older a boiler the more likely it is to be G-rated, which means it is extremely inefficient and could be see companies pay over the odds on gas bills.

Replacing this with a modern condensing boiler could help companies to significantly reduce their gas bills, along with the amount of carbon emissions they emit.

"A high efficiency condensing boiler works on the principle of recovering as much as possible of the waste heat which is normally wasted from the flue of a conventional, non-condensing boiler. High efficiency condensing boilers convert 86 per cent or more of their fuel into heat, compared to 65 per cent for old G-rated boilers," the green group explains.

And businesses which own the premises they operate from could find they are able to save even more money by investing in renewable energy technology.

Products such as solar panels and a ground or air source heat pump transform heat and energy stored in the ground or air or released by the sun into usable heat for a premises and its water supply, thereby reducing a firm's reliance on the National Grid.

Such steps could prove valuable to businesses struggling to make ends meet as the recession rumbles on, by seeing them make significant savings on their utility bills, while workforce productivity could be given a boost thanks to the warmer environment which may be created as the winter draws in.