Economic analysis of using heat cost allocators

The economic analysis of using heat cost allocators conducted by Energy Trend aims to assess the cost-effectiveness of implementing heat cost allocators in multi-family buildings, particularly in condominiums and housing cooperatives. Our actions not only comply with the Regulation of the Minister of Climate and Environment of December 7, 2021 but also aim to contribute to the efficient and equitable distribution of heating costs. Heat cost allocators are particularly important in buildings where the heating costs are not reflective of the actual heat consumption by individual units. This situation is typical in older buildings, where heat cost allocators can significantly contribute to a fair distribution of heating costs among residents. In such cases, heat cost allocators serve as auxiliary devices that indicate the share of each unit in heat consumption. The decision to implement heat cost allocators is worthwhile when specific technical conditions are met. These conditions include the necessity of having thermostatic radiator valves on radiators in individual units and the ability to minimize heat losses through heat distribution units. Additionally, heat cost allocators with remote reading functionality are used in cases where the central heating installation in a unit within a multi-unit building does not have a single-point supply system to all radiators within that unit. However, it is important to note that according to the Regulation, heat cost allocators should be used under the following conditions: [conditions should be listed here].

• The technical analysis indicates that there are technical capabilities for the implementation of heat cost allocators in the specific building.
• The amount of heat supplied to a multi-family building must not exceed the values specified in Article 45a(13) of the Act of April 10, 1997.
• The building has thermostatic radiator valves installed on radiators in individual units.
• The heat distribution units are designed and installed in such a way as to minimize heat losses resulting from the transport of the heating medium through the external distribution system.

The economic analysis of using heat cost allocators that we are conducting is crucial in determining whether the use of heat cost allocators is necessary and cost-effective. It serves as a supporting tool for the owner or manager of a multi-unit building when selecting the method of distributing the total heating purchase costs to individual units. We conduct this analysis in accordance with the requirements of the Regulation to ensure that the projected savings over a five-year operating period of the heat cost allocators will exceed the costs of their purchase, installation, and operation.

In summary, heat cost allocators can bring many benefits, but their installation requires thorough technical and economic analysis. Considering all the factors mentioned above, it is worth considering the use of heat cost allocators in multi-unit buildings to achieve efficient and fair distribution of heating costs. Proper heat consumption allocation not only contributes to resident satisfaction but also leads to energy savings and environmental protection.