5.Service sector energy consumption

Service sector energy consumption (excluding agriculture) accounted for 13 per cent of all final
energy consumed for energy purposes in 2001. The service sector can be split into two main
components: public administration which covers government activities, education and health and
private commercial which covers retail, hotels, financial, real estate and computer activities. In 2001
energy consumed in the public administration sub-sector accounted for 39 per cent of all service
sector energy consumption, while the private commercial sector accounted for the remaining 61 per
cent.
energy consumption in the service sector has changed since 1970.
Consumption has increased by 25 per cent since 1970 and by 17 per cent since 1990. Energy
consumption in the private sector increased by 59 per cent between 1970 and 2001 and energy
consumption in the public sector fell by 7 per cent.
Factors affecting service sector consumption:
The main drivers affecting service sector energy consumption over the last thirty years have been
changes in output (measured as the service sector’s contribution to the UK economy), floor area,
levels of employment and changes in technological innovation. structural
change and changes in efficiency in the service sector (measured as energy intensity) have affected
overall changes since 1990. Of the increase of 2.4 million tonnes of oil equivalent between 1990 and
2000, it is estimated that service sector energy consumption would have increased by 6.2 million
tonnes of oil equivalent due to changes in output, although this was offset by a 3.8 million tonnes
of oil equivalent improvement in energy intensity, which consists of energy efficiency and structural
changes within the public administration and commercial sub-sectors. This rise in intensity is due
to a combination of more efficient heating systems, insulation, greater efficiency of lighting and
electrical equipment and improved energy management leading to appliances being switched off
when not in use.
Output:
Service sector energy consumption has increased to meet increased demand for services. Output,
measured as the contribution made to the UK economy (in terms of this total, Gross Value Added at
constant prices), by the service sector increased by 40 per cent between 1990 and 2001, equivalent
to an annual increase of 3 per cent. Private sector output increased by 49 per cent, while public sector
output increased by 19 per cent.
Energy consumption per unit of output (energy intensity) fell by 17 per cent between 1990 and 2001
in the service sector as a whole. Energy intensity has fallen more quickly in the private commercial
sub-sector than in the public administration sector; while energy intensity fell by 17 per cent in the
private commercial sub-sector, it only fell by 10 per cent in the public administration sub-sector
between 1990 and 2001.
Floor space:
The relative energy intensity of individual types of building in the service sector can also be measured
by floor space. In 2000 77 per cent of the total working population were employed in the service
sector, an increase of 4 per cent since 1994. The increased number of employees has resulted in an
increase in floor area of 7 per cent over the same period, requiring more energy for space heating.