POWER SUNDOWN
Power: At what cost?
The Government’s ban on red diesel comes into effect in April, meaning power costs will increase. Power experts chat
F
rom April 1, the events industry will no longer be able to use red diesel and rebated biofuels to power events or festivals. Many event organisers are aware of the upcoming change – that red diesel can no longer be used to power generators or plant on site – but there are some events professionals that remain unaware of the large impact that this new law is going to have on production costs.
PEARCE HIRE
THINK ABOUT EMISSIONS
The Government announced the ban on red diesel in April 2020, as part of its drive to achieve netzero carbon emissions by 2050. But what does it mean for the events industry? Red diesel is ordinary “white diesel” that is used in road vehicles, but it contains a dye and is taxed at a much lower rate. Increasing the fuel tax that organisers must pay is designed to make events professionals think of the emissions they produce, and it’s also hoped that it will encourage people to use cleaner and alternative fuel sources. It’s good news for the environment, but events and festivals will be hit hard by the change.
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Essentially, it means that from April 1, mobile generators and plant machinery used on festival/event sites cannot be powered by red diesel. And you can’t bulk purchase red diesel prior to April 1 either because HM Revenue and Customs intends to issue hefty fines if red diesel is not removed from bowsers by this date.
LACK OF AWARENESS
It’s worth noting that the ban only relates to the context in which it is being used and not the equipment itself. For example, red diesel can be used in a generator that is being utilised in an agricultural setting, but it cannot be used in a
generator on a festival site. Plus, it will still be permitted to be used to power the machinery of travelling fairs and circuses. Right now, much work needs to be done to ensure that organisers are prepared for the fuel bill increases that will ensue, especially as many power experts are surprised at the lack of awareness of the upcoming changes. “We’ve been genuinely surprised at how many clients are unaware of the changes and haven’t budgeted for the increase,” said Mike Whitehouse, managing director of Power Logistics. “It’s only been in the last month that the realisation has hit home and
it’s starting to be factored into 2022 event plans, as in real terms it represents a 30 per cent increase in fuel costs.” George Nearn, project manager at Flying Hire, concurred. Many events professionals remain unaware that plant and machinery will no longer be allowed to use red diesel. As a result, organisers have not budgeted for higher fuel costs and have not even considered the potential threat of diesel theft. “We are working hand in hand with our clients to do our very best to help them through the change,” Nearn explained. “Essentially, it’s all about usage – lower the usage, lower the cost – so we are finding ways to keep usage down.”
LOWER USAGE = LOWER COSTS
Shaun Pearce, managing director of Pearce Hire, believes that people who routinely purchase large amounts of diesel are doing their best to plan and budget accordingly. Unfortunately, those who buy smaller amounts or who are “not professional or regular event organisers” are upset to discover the rising costs of fuel.
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