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Increase Your Profits Through Energy Management - UPS Enhanced Capital Allowances

Published by Jason Koffler on 14 January 2010

Historically power and energy management may have not have drawn the right attention across an organisation. Each organisational department has its own focus – IT on preventing mains power failures and keeping systems running, facilities management on suppiers performance and finance on operating budgets.

However, as file server applications continue to expand and increase their demand for secure power, and energy continues to rise in cost, organisations are faced with the ever increasing problem of how to balance cost, resilience and efficiency.

The answer is for companies to generate a management policy, in as much the same way they do to their quality, health & safety and environmental policies – and then implement it. It is almost a question of whether any organisation should amend its environmental policy to cover ‘Power and Energy Management’.

During 2010, we will see the UK government publish its ‘name and shame’ energy users who consume more then 6,000MWh – typical for a 100 cabinet data centre with an energy bill of circa £0.5m per year. Additional steps include will financial penalties for companies which ‘waste’ energy. Now not every data processing system consumes more than 6,000MWh of electricity off course but any IT system can benefit from adopting a ‘saner’ approach to power and energy management.

The UK government has latched onto this with an Enhanced Capital Allowance (ECA) scheme which now covers uninterruptible power supplies. The ECA scheme will allow organisations to claim back 100% of their capital allowances in their first year, against taxable profits. A typical £100,000 approved product installation (read UPS system) could generate around £28,000 in tax relief.

So this gets interesting for companies selling uninterruptible power supplies, like Critical Power and also for prospective clients. There are hurdles off course and benchmarks for the UPS systems to reach in order to be considered for this tax and energy management plan.

The problem for end-users will be in trying to select the right UPS to protect their systems and benefit from the Enhanced Capital Allowances scheme. That’s precisely where Critical Power Supplies comes in as an independent UPS Systems supplier. What we do is help organisations map, analyze and promote cost effective methods for reducing their energy costs – from datacenters to telecoms applications, server and computer rooms – whilst building them a highly resilient, cost effective and energy efficient UPS system.

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