Winter/Spring 2013
here’s how
we can help your business‌
Embrace new opportunities
Network
The secret of building successful business relationships
Adapt New rules on flexible working and how to benefit
Discount Energy efficiency advice for retail businesses
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Welcome
With your input, our aim is to give you more of what you want, including the right help and advice to support your business What’s inside
A big thanks to those of you who’ve taken the time to share some feedback with us. Legislation for SMEs, energy efficiency advice, expert ‘how to’ articles and green issues are often cited as popular subjects, so that’s what we’ve included in this issue. In particular, our Hot Topic (page 5) looks at changes to flexible working, and how you can adapt to ensure your business benefits from new employment trends.
Energy market view
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npower news
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Hot topic: Flexible working
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Focus on: Energy efficiency for retailers
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Technology: Tablets
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How to: Network
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Spotlight: Energy Services connections
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Your feedback matters We value your comments and suggestions, so if you have something to share, please email us at hereshow@npower.com
Our focus on energy efficiency targets retailers (page 7), with other sectors to feature in future issues. You can also learn more about networking (page 11), and how the npower Energy Services connections team works with new wind farms (page 13). Please keep your feedback coming (see box, right, for contact details). We really value your input. Rachel Barrass Customer Service Manager
Editorial content provided by Susannah Lawson & Associates (www.slcommunications.co.uk). Phone calls: We may monitor and/or record calls for security, quality or training purposes. The cost of calls to 0800 numbers should be free from a landline but are likely to incur a charge from mobiles. Please check with your operator for exact charges. npower is a registered trademark and a trading name of Npower Direct Limited (registered in England and Wales No.3782443) and associated companies. Registered Office: Windmill Hill Business Park, Whitehill Way, Swindon SN5 6PB. npm10572/RF12809/01.13 2
Energy Energy Market marketView view
Can the Green Deal soften the blow of price rises? With upgrades to our energy network and growing renewable subsidies in the headlines, Janet Wood explores the impact on fuel bills – and other news that could reduce them. In 2013 the government wants the Green Deal to be the big energy issue, and at last businesses can find out whether they can benefit from it – take a look at www.gov.uk/green-deal-energysaving-measures
Janet Wood is an independent energy journalist and former editor of Utility Week
However, price rises are likely to be of more immediate concern to business customers. But it has to be said that some parts of the bill that are rising are outside the control of business energy suppliers.
Negotiating prices for the bulk gas and electricity networks, and local gas networks for the next eight years is almost complete, and is set to add £12 to domestic bills annually and raise business bills accordingly. Price negotiations for the local electricity networks will be in the spotlight in the coming year and take effect in 2015.
Networks under review We’ve looked before at these other costs, and some are under the spotlight at the moment. Network costs, for example, make up about a fifth of the average bill. While energy companies source and supply electricity and gas for their customers, they don’t own the pipes and wires over which they deliver, any more than Amazon or Tesco owns the roads by which they deliver their product. Two dozen or so network companies do that, and these normally invisible companies have been highlighted recently.
Renewable subsidies bite Another big impact for bills is the Feed in Tariff. This is the subsidy energy users are paying for all the solar PV panels that have sprung up on many household and business roofs in the last couple of years, plus other forms of on-site renewable energy generation. Large-scale renewables are also being ramped up. There’s debate on the cost of this, but Ofgem estimates green initiatives add 4% to gas and 10% to electricity bills.
That’s because the price they can charge is being negotiated now. Their charges are strictly controlled by regulator Ofgem, and in the past pricing discussions have been of little interest to outsiders. But now the stakes are bigger: we are asking more from our creaking energy networks and so the costs
With rising energy costs, taking steps to increase efficiency certainly make more sense than ever – which brings us back to the Green Deal. But only time will tell how popular it proves to be for Britain’s SMEs.
of upgrading will push up prices.
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npower news
Getting kids outdoors Research released by npower has revealed that despite 90% of UK children spending up to three hours a day online or using gadgets, nearly three quarters (73%) wish they spent more time outdoors.
Elaine Midwinter receiving the award
Health Through Warmth scoops award
These findings were released as 100 of the country’s greenest young people headed to the Lake District, after winning an activity week in the npower Climate Cops SOS competition. Pupils from schools in England and Wales competed for the prize – which includes an adventure masterclass with Ray Mears (above) – by devising a group activity to encourage their peers to go outside and enjoy the great outdoors.
An npower scheme that’s improved the quality of life of more than 76,000 vulnerable people has won a Community Initiative award from the Energy Institute. npower’s Health Through Warmth scheme provides assistance with the funding and installation of heating systems for people with long-term, cold-related illnesses. “We deliver both practical and financial assistance to the most vulnerable people in our communities who may otherwise fall through the net,” explains npower Health Through Warmth manager Elaine Midwinter.
“npower’s Climate Cops SOS aims to educate young people across the country to give them basic life skills,” explains Clare McDougall, npower’s Head of Education and Community. “We really believe that if young people spend more time outdoors, they will learn to love and respect the environment and they’ll want to preserve it for future generations.”
Since it’s launch in 2000, the scheme has attracted more than £62 million in funding and helped tens of thousands of UK residents. For more information, visit healththroughwarmth.com
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Hot topic
Does flexible work? New rules on parental leave and a changing workforce mean companies will have to become more adaptable to flexible working. But, says SME expert Mark Williams, there may be benefits for employers too. News that fathers would get more parental leave under new Government proposals received a mixed reaction when it was announced last November. Under the proposals, which could be introduced in 2015, women will be able to return to work just two weeks after giving birth and share their remaining maternity leave with their partner, either by taking time off at the same time or in turns.
taken will place a disproportionate strain on small firms and will be very complicated to administer,” says National Chairman John Walker.
Adapting to a changing workforce The Chartered Institute of Personnel and Development (CIPD) welcomed the government proposals. “A shift in attitudes to flexible working is a natural reflection of the changing nature of work and the workforce,” says Chief Executive Peter Cheese.
Currently, new mothers can take up to 52 weeks’ maternity leave, while fathers can take two weeks’ statutory paternity leave. Some fathers may also be entitled to additional paternity leave, which gives them to up to 26 weeks’ leave if the mother returns to work.
“More flexibility extends the ability of employers to attract, retain and motivate a more diverse workforce.”
The government also plans to extend the legal right to request flexible working to all employees. Currently, only parents with children below 17 years (or below 18 if their son or daughter has disabilities) can request flexible working conditions, providing they have been employed for at least 26 weeks. However, if there are sound business reasons, employers can say no.
“Firms are increasingly finding they can benefit from [greater] loyalty, commitment and engagement from a broad base of employees – not just working mothers – if they adopt a more universal approach to considering flexible working requests. Many small businesses make extensive use of flexible working and, because of their size and personal relationships with employees, can be among the best at making it work.”
The Confederation of British Industry (CBI) acknowledges that flexible parental leave is a good way to support working families, but its Chief Policy Director Katja Hall warns: “We must ensure that the new system is simple to administer.” The Federation of Small Businesses believes extending flexible working will place an unwanted additional burden on firms. “Allowing chunks of maternity and paternity leave of as little as one week to be
The CIPD published a report in May 2012 called Flexible Working Provision and Uptake. “We found that the most common forms of flexible working in organisations, in order of popularity, were part-time working, job-sharing, flexi-time and term-time working,” says Ben Willmott, CIPD Head of Public
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Hot topic
To find out about employers’ legal obligations regarding flexible working, visit
Policy. “Flexible working arrangements can be formal or informal. Although it’s preferable to include flexible working policies in your employer’s handbook, working from home is the type of flexible working practice most likely to be offered informally.”
www.gov.uk/flexible-working/overview
CIPD tips on implementing flexible working
A happier workforce
• Establish a clear process for how flexible working works in your business
An employee survey carried out for the CIPD by Kingston University/Ipsos MORI found that workers with flexible working arrangements tend to be “more emotionally engaged, more satisfied with their work, more likely to speak positively about their employer and less likely to quit”.
• Ensure that there are clear roles and responsibilities for employees, line managers and human resources • Assess current levels of support offered to line managers and ensure it is sufficient
Willmott says numerous factors are contributing to increased interest in flexible working. “They include its potential value as a recruitment and retention tool and the changing profile of the workforce. With more women in the labour market and an ageing population, it’s increasingly common for workers to have caring responsibilities outside work. Advances in technology are also facilitating remote working and hot-desking, while there’s an increasing need for businesses to operate 24/7. And because of tough economic conditions in recent years, some organisations have been offering part-time working or sabbaticals as a way to avoid or minimise redundancies,” Willmott concludes.
• Invest in ongoing communication and awareness raising • Assess how conducive your business culture is to flexible working – and take action accordingly • Make use of pilots (when introducing new initiatives) and trial periods (for individual flexible working arrangements) to highlight potential problems with flexible working arrangements • Build in opportunities and mechanisms to monitor and evaluate progress with flexible working
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Focus on
Energy efficiency for retail businesses Reducing costs is good news for any business, and this issue we focus on how shops and other small retailers could save on energy that may have a positive impact on their bottom line. However, despite this, research by npower found that 53% of SMEs do not have any methods in place to manage energy use efficiently. “Most organisations can save up to a fifth on their fuel bills by better managing their energy and investing in cost-effective measures,” explains Marlene. “The Carbon Trust has calculated that a 20% cut in energy costs represents the same bottom line benefit as a 5% increase in sales, proving that saving energy really is one of the easiest ways to increase profits.”
Independent retailers are the unsung heroes of the British High Street, accounting for two out of every three shops in the UK. According to Alan Hawkins, Chief Executive of the British Independent Retailers Association, “Independent retailers are the glue that holds many local communities together. They bring choice, variety and real service that you only get from owner-run businesses.” Yet, like many smaller businesses in today’s difficult economic climate, staying profitable can be challenging.
Marlene recently attended the Independent Retail Show at Birmingham’s NEC, where npower was on hand to show how low cost measures could achieve tangible cost and energy savings. “We had a lot of interest from visitors to the retail show,” says Marlene. “Maximising energy efficiency is a relatively simple way for independent retailers to influence the bottom line.”
Marlene Webley of the npower SME team (right) chats to customers at the Independent Retail Show
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Photo: www.ptpimages.co.uk
“Energy is an essential overhead for every type of business,” says Marlene Webley of npower’s SME team. “But for retailers, it’s especially important, where optimal lighting and temperature control are key to creating the right customer experience. Refrigeration can be another big cost if food and drink are on sale. So we find that retail customers are often very receptive to suggestions that could help them cut bills through greater energy efficiency measures.”
Focus on
Ring up the savings: five steps to better energy efficiency
Also check your heating system timer to ensure that its operating hours match the times when heating is required. It’s often possible to shut down heating an hour before closing without any noticeable difference to staff or customers.
1. Reduce wastage – start by looking at how energy is used in your business and aim to ensure it is as efficient as it can be. If equipment – for example lights, heating and ventilation – is not required, then turn it off. Many retailers could immediately slash their energy bills by up to 10% with minimal capital expenditure.
4. Keep cool with refrigeration – when using refrigeration, it is important to ensure any debris is removed which may restrict airflow around the unit, as this can lead to fridges and freezers consuming more energy than required. Also consider fitting night blinds, as these help maintain the quality of chilled and frozen food and reduce heating costs by preventing cold air spilling out from cabinets.
2. Look at lighting – while it is important to maintain customer experience and showcase merchandise in the most effective way, it is also possible to make potential savings through increasing energy efficiency of lighting. Changing from halogen spotlights to LEDs, for example, could use up to 80% less energy and reduce maintenance costs too, as they last many times longer.
5. Get employees involved – changing employee behaviour can also have a real impact, so encouraging staff to think about energy usage can help to reduce consumption. Appointing an ‘energy champion’ can be a simple but proactive step. They can assist by taking responsibility for initiating small-scale efficiency practices and remind fellow staff members of the everyday steps they can all undertake to bring energy usage down.
3. Turn the heat down – heating accounts for 40% of energy use in a typical retail environment, which means that there are big opportunities to make savings. During colder weather, customers will be wearing warmer clothing if coming in from outside, so there’s often no need to heat to a temperature that could make them uncomfortably hot while in-store. Reducing heating temperatures by just 1˚C can cut fuel consumption by around 8%.
For more tips and advice, visit npower.com/ SmartStart. And see over the page to find out how a village shop fares in an energy audit.
Source: The Carbon Trust 8
Case study
Shopping for savings
Replacing the fluorescent lamps with modern energy efficient alternatives could deliver savings in the region of 40-70%. What’s more, these could use the existing fittings, so there’s no need to invest in new ones.
Walter Bush, owner of Baginton Village Stores in Warwickshire, has run the convenience store for seven years. “We open every day, and for six of those, are here from 5.30am to 6.30pm,” he says. As well as putting in long hours, Walter has been looking to develop the store and enhance what’s on offer and the way in which it’s presented. “The problem is that energy is a major issue when it comes to lighting and refrigeration in this environment,” he says. So he was especially receptive to receive an Energy Audit from npower representative Andrew Fletcher.
2 - Refrigeration By installing a timer device on the refrigerators, savings of 30-50% could be achieved, predominantly from being able to switch them off during periods of non-occupancy and over night when they are currently unnecessarily running. 3 - Voltage optimisation Like many convenience store owners, Walter experiences voltage spikes at his premises. “This is very common and increasingly so in the UK now, whereby at different times of day or night, voltage levels will increase and we often find that light fittings are very susceptible to this,” explains Andrew. The solution is to fit a voltage optimisation product, which can reduce business electricity consumption by around 10-12%.
After an inspection of the shop, Andrew was certain that he could help Walter cut his energy costs. “We’ve been able to confirm that there are significant opportunities for energy savings,” he said. The three main areas identified were lighting, refrigeration and voltage optimisation. 1 - Lighting
“In addition, it also ‘conditions’ the voltage and removes those dangerous spikes and therefore prevents lamps and other devices which are affected by voltage from damage, so extending their lifespan.”
Walter Bush (left) with Energy Auditor Andrew Fletcher
Walter’s verdict: You can see a short film of the Baginton Village Stores energy audit by visiting
“Any help and advice we can get on energy efficiency is sorely needed,” says Walter. “Energy efficiency in this environment has got to become more of a priority with costs being as they are, so anything we can do to cut them down or to reduce the energy footprint of the business has got to be a good thing.”
npower.com/SmartStart Also visit
npower.com/SmartStart for more energy saving advice.
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Technology
Should your business buy a Tablet computer? As the workplace becomes more flexible, the demand for technology that can facilitate work on the move increases. Mark Williams looks at the latest trend in Tablets. According to the YouGov Tablet Tracker, the number of Tablet computers used in UK homes is set to double in 2013. The internet-based market research firm estimates that by August 2013, Tablet ownership will increase to more than 10-million, with Apple accounting for about 67% of the UK market and Samsung increasing its share to 10%. Many businesses are also now using Tablets, so if you’re thinking of buying one for yours, what are your options? The recently launched fourth-generation iPad (“with stunning Retina display, five megapixel iSight camera and ultra-fast wireless”) starts at £399 (as of January 2013). Third-generation iPads are available for £369, although you can pick up an iPad 2 for £329. If you’re on a budget, the iPad Mini sells for £269 upwards (all 16GB models). Many Android™ Tablet models are also available, including the ASUS Google Nexus 7, which, for less than £200, offers great value. The Galaxy range from Samsung, starting at about £269 for a 16GB Tablet, is also very popular. Other manufacturers who have brought Tablets to market include Blackberry, Fujitsu, Acer and Toshiba.
A huge, bewildering array of apps (software applications) are available to download for Tablets and these can enable you to access the internet, send and receive emails, take notes, make images, type documents, produce and deliver presentations, access data, organise your day and many other key business tasks. Buying a Tablet could certainly prove a shrewd investment for your business in 2013.
Tablets are lighter, more portable and therefore more convenient than a laptop. They can work out cheaper, too. Tablets also provide a more convenient option for working on the move than smartphones, as their larger size makes viewing information and onscreen typing significantly easier. And, of course, they can look impressive when presenting information to customers or clients.
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How to…
Build rapport when you Network Successful networking is about building relationships, but the key is not to sell yourself but rather to focus on finding common ground, as communications champion Will Kintish explains. for some time, even though they may be a new acquaintance. It becomes a relationship of mutual understanding and respect; all of a sudden you’re on the same wavelength.
The word ‘networking’ is becoming synonymous with selling, attending events where people behave in an artificial manner, where there is sham and falsehood and lots of insincere behaviour. But when you understand what it takes to be a world-class networker, you shouldn’t experience any of those negatives.
Someone once defined rapport as ‘intense harmonious accord’. When you have those feelings you can often say anything, within reason. You can ask questions perhaps you wouldn’t normally ask or disagree without worrying you might fall out.
Networking is simply building relationships; something everyone does every day. On certain days we start a new relationship, on most days we reinforce existing relationships. The three keys steps to building relationships are:
Building rapport needs you both to have the same values; honesty, integrity and reliability are just three traits to come to mind.
• Know • Like • Trust
Birds of a feather As you start to communicate, the key to building early rapport is finding common ground. It may be where you both grew up, which university you went to or even the fact you were at different institutions but studied the same subject.
Let’s focus on the ‘like’. But for the moment let’s call it building rapport. When you build rapport things magically happen. You relax with the other person and begin to feel you have known them
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How to… When you do spot a potential opportunity, remember the event itself is not the place to have a serious business conversation. The event is the platform to start the relationship with a view to meeting shortly afterwards. Ask permission to contact them in the next few days to set up a get-together.
Commonalities in families are a great way to build rapport but never ask anyone directly if they’re married or have children, as asking these questions to the wrong people on the wrong day can cause upset and embarrassment. Instead, be more subtle by mentioning something about your situation and you often find they will mention theirs if it’s similar. When you and the other person have similar knowledge and expertise, again you find the conversation begins to flow smoothly.
I strongly recommend you try to get them to commit to taking your call rather than just sending an email, as this keeps the communication more personal (and emails can easily be deleted). Remember, you’re following up because you think your area of expertise and knowledge can add value to their business. With this attitude, you should find business development is about their business and not yours!
Skills you need When you are looking for potential business opportunities, the key rapport-building skills are asking pertinent and interesting questions and listening very carefully when the other person answers. People love talking about themselves – good networkers let them.
Kindness and generosity Finally to build rapport, we need to be kind and generous. The greatest gift we can give to someone at an event is our time and genuine interest. Then when the conversation is over, offer to introduce them to others – or if you don’t know anyone, go hunting in pairs. Leaving someone alone is bad for rapport building.
We learn nothing by talking, only by listening. Be careful your questioning doesn’t turn into an interrogation. But when you meet someone who is happy to share their business issues, listen and keep probing. Business development is about helping others not thinking ‘Ahaa here’s an opportunity to sell to achieve my targets’.
True rapport is the way to build relationships. That’s what world-class networkers do.
“When you build rapport things magically happen.” Will Kintish is a leading UK authority on effective and confident networking. Visit www.kintish.co.uk and www.kintish.tv for further free and valuable information on all aspects of networking. Or if you’d like Will to speak at your conference or training workshops, call him on 0161 773 3727.
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Spotlight
The power to connect When a new site needs a new power supply, location and terrain are no obstacle to the npower Energy Services team. As we turn to more sources of renewable energy to meet our future power needs, the challenge of connecting new generating sites in often remote locations to the National Grid is set to increase. “Finding an appropriate location for a wind farm, for example, and then getting the necessary planning and community approval is only part of the story,” explains Derek Cave, Development Manager with npower’s Energy Services connections team. “Once a project has been given the go ahead, the infrastructure that will connect the wind turbines to the local electricity grid has to be planned and then built.” As well as generating and supplying energy to customers, npower has teams that can provide expertise when it comes to building on-site generation – for example installing wind turbines or a biomass generator – and then ensuring that meters are in place and the appropriate data collected. But Derek and his team focus on making sure any new sites can be connected to the national power supply. “We work with both new generators to ensure the energy they make can be exported to the Grid, and also with sites that require power, for example providing connections for new industrial or housing estates,” explains Derek. “Our team provides a smooth and comprehensive service – from finding out about a customer’s exact power requirements to liaising with local distribution network operators and ensuring the power is all connected properly to schedule.”
Bringing in the power cables to connect Lochelbank up to the Grid
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Lochelbank Wind Farm
In addition to trenching and cable laying, the job included construction of high-voltage switchgear connecting turbines to a main switchroom. “Each turbine also has a kind of ‘mini sub station’ attached with a transformer in there to step up the voltage,” explains Derek.
In the stunning location of the Ochil Hills near Perth and Kinross in Scotland, you will find Lochelbank Wind Farm. Completed last year, the project has 12 turbines set over a 147-hectare site. The wind farm has a total generating capacity of 9.6MW – enough clean energy to power around 5,300 homes each year.
Working to the highest standards of health and safety is a primary concern on any job, adds Derek. “We also makes sure we comply with regulations, of course,” he says.
“The project was completed on time and to budget, although there were challenges we had to overcome,” recalls Derek Cave of npower’s Energy Services connections team. “Lochelbank is a beautiful place but the weather can get very wet, which often makes conditions extremely muddy. Frequently, we had to pump out water from trenches before cables could be laid.”
Another key consideration is minimising disruption for people who live and work nearby. “The last thing you want to do is create a nuisance for anyone. And that includes the landowners, who in the case of Lochelbank, have a farming business to run too.”
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