Issue link: https://fhpublishing.uberflip.com/i/736974
NETWORK / 32 / OCTOBER 2016 A s it approaches the anni- versary of its launch, the Heat Trust has delivered more transparency for domestic customers on heat networks. The not-for-profit organisa- tion has this month launched its Heat Cost Calculator. The calculator is the first publicly available online tool to give customers an insight into the makeup of their heating bills. Customers on newer net- works with individual meter- ing will be able to input their consumption data to obtain an accurate indication of how their heating bill compares to the cost of heating a similar sized build- ing with a gas boiler. Bindi Patel, head of the scheme, said the increased transparency will be an opportu- nity for suppliers to bring about a more accountable future. The tool has been welcomed The district heat network market has moved towards greater price transparency with the launch of a new heat cost calculator for customers. Add it up CUSTOMERS Key Points The Heat Cost Calcula- tor is the first online tool developed to provide district heat network customers with a comparison to gas boiler heating. The calculator takes the amount of heat a customer uses and factors in boiler ef- ficiency, repair and mainte- nance costs, and the cost to replace a boiler at the end of its lifetime. The Heat Cost Calculator is a guide, not a bespoke com- parison for each householder. The tool will be expanded to include a comparison with electric heating next year. by one of biggest players in the district heat market, and origi- nal Heat Trust member, SSE. SSE Enterprise Utilities' director of heat Mike Reynolds said supporting the tool is a win-win for his company, despite doubts about the level of engagement it will achieve. But even in a market notorious for its lack of engagement, ensuring the infor- mation is available for the 5% of customers that are interested is important, Reynolds says. "We don't lose anything by supporting it, it's a win-win." He told Network. "I like trans- parency I think it's important, especially in a new market." For Reynolds, helping cus- tomers understand the difference between buying gas, a commod- ity, and heat, a service, is the key benefit of the tool. He says this lack of understanding is "the biggest challenge we face". "We spend a lot of time educating customers, I have ten customer service representatives permanently available for our heat customers 24/7 answering those questions, so a third party being able to provide that infor- mation other than me is great." The trust already has plans to expand the calculator to provide a comparison with electric heat- ing, due to launch next year. Beyond this the future for the tool's evolution is trickier. As the sector continues to grow it will involve more retrofit schemes and a diversification of technol- ogy. The tool will have to be able to provide some standardisation across this variety if any com- parison is to be useful. Reynolds is keen to stress that while it is an "excellent first tool", customers must be aware that it is only a benchmarking tool and does not take into ac- count the realities of "pricing up a 40-year asset". "How do you know what that's going to cost you in five years let alone 15? Once you layer on top of that technology changes and planning changes… that's why it's important to understand it's a service that a customer is buying, not a com- modity, and that's why this tool is so exciting."