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Somar International has developed a business software tool that provides finance directors with clear return on investment (ROI), internal rate of return (IRR) and net present value statistics.

The development comes as David Bone, managing director of Somar International, defended industry finance managers after a report by ABB suggested that very few finance directors understand the best way to reduce electricity costs in their business.

According to the research, more than half of finance directors thought the most effective way was to switch suppliers, while investing in products to improve efficiency – often the most prudent way to reduce factory energy bills – was ranked bottom of the list.

Bone believes that finance directors are rarely presented with a compelling, robust business case from suppliers of energy-saving systems and that these suppliers should shoulder some of the blame for leaving finance bosses in the dark.

He said: ‘Manufacturers of energy efficient products aren’t providing financial directors with a clear enough picture of the benefits.

‘Too often suppliers focus on environmental gains and intangible savings, rather than solid figures pertaining to vital statistics like return on investment.

‘As a result, finance workers have not really woken up, or been alerted to the fact that energy efficient products are a great investment.

‘Instead, they hear so-called ‘money saving experts’ harping on about switching suppliers and fixing tariffs and assume that’s sound advice – but those savings are negligible in comparison.’ Bone added: ‘It’s vital that suppliers speak the same language as the finance personnel they’re presenting to.

‘Otherwise they won’t understand the benefits and continue wasting money through excessive electricity usage.’

Somar International

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