It is important for any heat network or private utility network to recover costs. The challenge, especially on smaller-scale networks, is to do so fairly and demonstrate value.
There is certainly some benefit of scale, where fixed costs can be divided across a greater number of households and businesses, as well as the ability to secure more advantageous raw fuel costs. This benefit of scale is why numerous heat network operators are selecting service providers for their entire portfolios, or bringing services in-house with solutions like Mabdeck to leverage greater value and minimise costs.
At Sycous we’ve developed intelligent tariff options within Orbit and our Mabdeck Software and Customer Billing Services. We have worked hard to develop comfort tariffs, where the use of IoT metering plus IoT temperature sensors can be used to provide a minimum ‘comfort’ temperature, with the consumer paying a variable rate for consumption above that comfort level. This has many additional benefits, as well as cost savings, for fuel poverty reduction and mould prevention.
Overall, these improvements across the market mean that it is becoming more viable to deliver a fair tariff for supplies such as heat.