Cambs Compressors Newsletter Autumn 2022

www.cambscompressors.co.uk AUTUMN ‘Keeping the heart of Industry Pumping’ With 130% tax relief and a 500% hike in energy prices, is a new super energy efficient compressor the answer? It could be the ideal time to upgrade your compressed air system In a year of ongoing economic shocks and accompanying uncertainty brought about by The Bank of England announcement of a looming recession - it’s no surprise capital investment isn’t in the forefront of lots of business owners planning currently. However, with escalating energy prices, combined with the super-deduction capital allowance scheme, it may be worth reconsidering. Introduced in 2021 to cut tax bills by 25p for every £1 invested in productivity-enhancing new plant and machinery, the scheme specifically includes compressed air equipment. Your old compressor could become your back-up system You may argue that your old compressor runs fine, but a simple energy test can provide the calculation in different running costs. So you can accurately work out the payback on a new compressor on your current energy tariff. Many customers have used the 130% tax relief, combined with a new compressor to reduce their predicted energy cost plus bolster their compressed air system redundancy but using their old compressors as an emergency back-up. This is because it has become much more cost effective to purchase a new, significantly more energy efficient model than to overhaul outdated existing equipment. The super-deduction capital allowance scheme ends in March 2023 The food and beverage industry is particularly vulnerable to energy crises, because food and beverage production is an energy-intensive process. Energy prices are likely to stay high for much longer Power prices in Germany, the UK, France, Italy and Spain hit an all-time high this year. With food and drink businesses being hit far harder by rising energy prices and international supply chain hitches than other industries, according to the UK Office for National Statistics - February’s invasion of Ukraine by Russia – Europe’s biggest supplier of gas – heaped further pressure on energy prices and related costs such as transport and fertiliser. Energy savings opportunities in food and beverage compressed air The most expensive component in the total cost of compressed air is energy. The bottom line, maximising your compressed air energy efficiency saves you money. The first step to reduce compressed air energy costs is to measure and monitor your compressed air system’s energy consumption, flow rates and operating air pressure. The impact of the energy crisis on the Food and Beverage Industry Richard Bachini Solutions Engineer, Cambs Compressors With a 500% hike in energy prices, it could be the ideal time to upgrade your compressed air system