I just wanted to say a BIG ‘Thank You’ to you, the EI and ADE for a thoroughly enjoyable event at yesterday’s ‘Heat 2014’. The choice of topics, the speakers and the venue were all first-rate. I came away with many new ideas and many new contacts to follow up on.
Alan Howard, Sector Head for Thought Leadership, IET
Heat network metering & billing - sector success or own goal?
A couple of weeks ago, BEIS published their long-awaited response to the Heat Network Metering and Billing consultation and on the very same day laid the new Regulations before Parliament. They'll come into effect on 27th November.
The Metering & Billing Regs are all part of the drive towards more smart meters in homes. They require individual meters to be fitted where cost-effective to do so on heat networks of all sizes (from small communal schemes to large municipal district energy networks) so that customers can be billed on their consumption rather than a flat rate / apportioned fee. 65% of heat networks were expected to fall into the revamped Regs, meaning around 285,000 meters would be installed. And at around £500 a pop, that's not a cheap ask.
BEIS estimate 30% of all heat networks to belong to the social housing sector (although we'd argue it's much closer to - if not more than - 50%). Heat networks in the social housing sector are run on a not-for-profit basis and there is simply no margin to pay for these new meters. We also lobbied - through The Heat Network and Chirpy Heat that some customers on heat networks - such as those in sheltered or temporary accommodation - would never realise the benefits of meters, and so questioned cost-effectiveness in these cases.
The good news - for social housing providers - is that BEIS has shifted and it seems that sheltered housing is now exempt. They've adjusted their cost-effectiveness calculations too which now means the estimated number of meters to be installed has tumbled to just 84,000. Non-compliance though could mean unlimited fines so it's still vital that schemes are assessed for meter viability - far better to do this than get caught out.
We've written a blog for the Chirpy Heat website which gives more details about what this means for the social housing sector. There's other views too of course - like this one from Casey Cole of Guru Systems. They rightly point out that some customers may now lose out and it could be a setback for decarbonisation...
It would be interesting to hear your views on this one! Drop me a line at rachael.mills@se-2.co.uk and let me know what you think!
(Photo Credit: Sawinery.net)