ADVICE & OPINION
COMPLIANCE
CHANGES TO RED DIESEL REGULATIONS:
ADVICE ON MAINTAINING CRITICAL ASSETS
In the 2020 budget, the government
announced that many sectors will lose their
entitlement to use red diesel from April 2022. The
reforms support the UK’s bold environmental
commitments to improve air quality, champion
greener fuels, and achieve net zero carbon
emissions by 2050.
Facilities management businesses who use red
diesel for vital back-up power generation – while
saving 80 per cent, per litre on duty rates – must
now make plans to replace existing reserves with
alternative fuel options, such as white diesel, HVO (a
100 per cent renewable ‘drop in’ diesel substitute), or
even BioDiesel.
COMPLIANCE CROSSROADS FOR THE FM SECTOR
Without question, the mandatory changes,
resultant tax increase, and relatively short twoyear
implementation window will place significant
pressure on already stretched facilities management
budgets. And in a sector where business continuity
is king, the far-reaching revisions leave no margin
for error. So how can FM providers balance
environmental responsibility with rising costs and
the risk of operational downtime?
The answer lies in a long-term view and recognition
that revamped red diesel rules are more than a
standalone fuel supply swap. They are a move
towards ecological accountability. Under ambitious
government climate change targets, protective
measures across air and water quality, biodiversity,
natural resources, and waste management will
continue to be enshrined in law.
The updated regulations are a turning point for
businesses, encouraging not only a hands-on review
of current assets, but also a high-level rethink of
ongoing e iciency and green credentials. Working
with an experienced environmental consultant will
help you tackle the immediate task of red diesel
replacement – and navigate your organisation’s
most productive and cost-e ective route to lasting
compliance.
Enlisting expert support to shape your ideal
strategy, investment, and timeline will allow you
to manage the demands of eco-conscious working
practices.
DETERMINING YOUR GREEN OBJECTIVES
The replacement of red diesel involves a specialised
14 MARCH 2021
sequence of tank cleaning, line flushing, and the
upli of current stores to make way for onward
fuel. For FM providers, relied upon for round-theclock
delivery of customer support services, the
success of the procedure – depends on a detailed
understanding of your operations, assets, and risk
profile.
As well as carrying out the complex fuel transfer
process, a qualified consultant can deliver a
comprehensive portfolio survey to ensure your
infrastructure is fit for purpose going forward. A
full estate inspection will identify structural and
functional weaknesses – linked to age, internal
corrosion, and exposure to the elements – that could
lead to service failures, pollution events, and punitive
fines under increasingly tough environmental laws. A
trusted partner will also discuss how improvements
to your fuel management and maintenance
programme could unlock long-range cost savings
and e iciencies.
As a first step, an environmental professional will
undertake a practical audit of assets to gauge their
condition, potential ecological hazards, and the
recommended plan for fuel upli and fulfilment.
To ensure unfaltering operational continuity, fuel
replenishment for back-up generators is likely to
require a completely bespoke, phased methodology.
Following open dialogue and mutual agreement
of your most beneficial approach, skilled onsite
technicians – trained in the use of all fuel transfer
pumps, handling hazardous materials, and spill
response procedures – will implement diversion
systems and temporary fuel supplies to prevent
downtime and disruption.
Additional services will include full tank inspections
to identify signs of degradation, comprehensive
cleaning, and removal of red diesel dyes to prevent
penalties under new laws. Once tanks are degassed
and clear of residue, legacy fuel will be removed
and disposed of in line with current compliance
guidelines.
Tailored follow-up consultation will focus on top
line business aims and your organisation’s long-term
environmental risk reduction strategy, with every
element designed to prolong the life of your assets
and protect your company, clients, and the wider
community.
THE RIGHT ACTIONS, AT THE RIGHT TIME
Following a government consultation ending in
October 2020, the finer details of red diesel reforms
are yet to be revealed, but prudent operators will
take immediate – yet measured – action. By initiating
the planning process now, and aligning with a
commercially minded environmental specialist,
it is possible to intelligently spread investment
and mitigate the financial burden of building a
greener business. A professional consultant will
help you pinpoint and prioritise your most critical
environmental risks, while – crucially – setting
timescales for less urgent requirements, allowing you
to make meaningful changes at a manageable pace.
In the HM Treasury consultation document
presenting amended tax treatments of red diesel
and other rebated fuels, the government shares
its vision to ‘provide businesses with a much
stronger incentive to improve the energy e iciency
of their vehicles and machinery, look for more
environmentally friendly alternatives, or just use
less fuel’.
It also describes the updates as ‘a signal to
manufacturers to design and sell new alternatives’,
thereby creating a more competitive market and
consequently bringing down the price of these
‘alternatives’. While companies wait for green
fuel costs to fall, they should begin transforming
operations one compliant step at a time.
Readying your sites for the red diesel switch
and developing a deeper understanding of its
environmental risks and opportunities are sensible
places to start. Working with a single, proven
supplier who can guide you through the entire
process – from discovery to delivery – will ensure
you remain compliant, provide solid support to your
customers, and meet evolving expectations around
environmental responsibility.
Mark Griffi ths, Head of Business Development at Adler and Allan,
discusses the importance of evaluating your assets in preparation for
upcoming legislative reform to red diesel.
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