Memorandum submitted by Louis Meyerowitz
What are the barriers to accelerating energy efficiency
in the business sector and how can these be overcome? (Question
7)
We are an injection moulding business consuming
a significant amount of power. Investment/depreciation is normally
done on a 10 year basis and indeed the typical average life of
machines is nearer to 15 years.
These machines can be replaced, with latest
technology and deliver spectacular percentage energy savings but
in itself the actual value of saving does not warrant quick replacement
of capital equipment as the payback is poor relative to the cost
of new technology. If investment/tax incentives were available
then providing they were viable accelerating energy efficiency
could be achieved.
Alongside the CCL, the Government included the
enhanced capital allowances to further encourage firms to make
energy saving investment. How well is this scheme working? How
well does it fit with other existing or proposed climate change
instruments? (Question 9)
Given comments above, as the UK's largest manufacturer
of injection moulded plastic caps (closures), not only are we
ignorant of the enhanced capital allowance scheme but also the
supplier of the machines to our group have no knowledge of this
scheme.
The scheme is therefore not known or understood
and at the point of writing this email I don't know if it is applicable
or not—but I will be finding out!
14 September 2007
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