What is a Heat Network?

A Heat Network is a lower carbon alternative to individual boilers being installed in many developments.

A communal boiler heats water which is circulated around the block.

This hot water passes Heat Interface Units for each individual property, and the heat is transferred to water within that home.

Hot water is in continual circulation ready to be used when called on by any property. Heat is lost as part of this process.

Why do I pay more?

The heat tariff you pay as a resident considers the losses in efficiency as the heat moves around the network (The industry standard for this is 40%).

The residential heat tariff has two main constituents:

• Heat unit charge (p/kWh)
• Heat standing charge (p/day)

The Heat Unit Charge is covering all costs associated with heat delivery and consumption to each residential unit.

• Cost of heat for residential network including plantroom losses
• Cost of heat generation that is a final price that residents pay for hot water/space heating consumption

The Heat Standing Charge is to cover the gas standing charge and all administrative costs including for example:

• Gas standing charge
• Metering and Billing Charge
• Reporting Charge
• Tariff review charge
• Transaction Charge
• Tariff Change Letter Charge
• 3x Check Meter Metering and Billing Charge

When setting up a tariff the starting point is the communal gas tariff, and the other elements are built on according to the contract with the metering and billing service provider.

PA Housing may own and operate the heat network, in which case we will usually set the tariff. In some developments (usually where there is a Third-party managing Agent in place) the Freeholder may own and operate the heat network, setting the tariff as well as appointing the metering and billing service provider. Tariffs are calculated on a not-for-profit basis, so only charges incurred are passed on.