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Majority rule
With SMEs accounting for over 99 percent of the UK’s 4.5 million businesses, they
are a crucial engine for economic growth. Jed Smith, head of business support
services at Specfl ue, explains how SMEs can infl uence government policy when it
comes to renewable energy
ith a turnover of around £1.5
billion and responsibility for over
14 million private sector jobs, it
is clear why SMEs are valued by
the policy formers and advisers
within government.
In the energy and heating market,
SMEs have a key role to play in driving
the necessary innovation required to meet
strategic targets. The UK has set a legally
binding target of cutting carbon emissions
by 80 percent by 2050. Achieving this will
require a fundamental shift away from gas
boilers to alternative heating technologies,
the installation of energy demand reduction
solutions and, importantly, the development
of the necessary skills to enable such a radical
transformation.
A great deal of this change will be
delivered by SMEs and a supportive policy
framework will be crucial to enabling SME-led
innovation in the sector.
W
Building a group of industry
stakeholders on a specifi c
issue can help to positively
engage policy makers
The low carbon transformation of the
building sector is impossible without major
intervention to develop policy instruments
to incentivise novel technologies, skills and
practices. Examples include the government
initiated and developed Green Deal and
RHI and policy innovation of this scale
and complexity is only possible via active
collaboration between government and
industry.
Big industry players have signifi cant
resources with which to engage actively in
8 | www.renewableenergyinstaller.co.uk
the policy process. SMEs do not have this
capacity. So how can SMEs participate in
policy formation in a way that refl ects their
innovation potential and corresponds to the
signifi cant risk that they are undertaking to
bring novel solutions to market?
The answer may lie in developing a
collaborative and focused approach to policy
engagement.
Collaboration with other companies
is a great example of engagement and a
way in which an SME can infl uence policy.
Building a group of industry stakeholders
on a specifi c issue can help to positively
engage policy makers. Groups can offer
advice, market knowledge and data that
can help government offi cials make detailed
policy decisions based on current and robust
evidence.
Another way of being involved in the
process is to devote time to responding
to government policy consultations. If
the response is structured through careful
collaboration with other stakeholders and
SMEs that have a similar approach, then
this will carry more weight and provide an
infl uential medium to shape policy.
In heavily regulated markets like the
UK’s energy market, trade associations can
play a vital role for SMEs, providing policy
infl uencing opportunities and engaging the
government on behalf of members. The trade
association supplies one voice for members,
creating an important representation of
industry and its issues. Also, government
offi cials are more likely to speak to a trade
association than meeting companies
separately. However, while some believe
that trade associations are a great tool for
shaping policy, others believe that issues can
become watered down due to the number and
differing positions of members and can lead
to campaigns that do not directly refl ect all
views.
Strength in numbers: Specfl ue is seeking SMEs
to collaborate with and engage policy makers as
part of a group, says head of business support
services Jed Smith
Specfl ue is a growing company so we are
naturally interested in policy developments.
Acknowledging its importance in terms
of unlocking low carbon markets, as well
as driving innovation and skills, we have
therefore taken a strategic decision to develop
a more proactive stance in terms of policy
innovation. We are now actively searching for
other industry players to collaborate with, to
develop policy that works for SMEs and the
wider low carbon sector.
We have taken a strategic
decision to develop a more
proactive stance in terms of
policy innovation