Myatts Field North District Heating Service FAQ
Myatts Field North
District Heating Service
What is a District Heating Service?
District Heating is a low carbon and renewable heat and power system that is produced locally and distributed via a heat network. The Government is expecting that up to eight million residential customers will be connected to low carbon networks by 2050.
To support Government policy of all new residential buildings, the London Borough of Lambeth specified that the regeneration of Myatts Field North would incorporate a low carbon and renewal heat and power service. This service is provided under the Regenter consortium by E.on Community Energy Ltd.
Why a 40 year contract?
In 2011 the Government undertook a review of all similarly funded regeneration schemes. This led to the requirement for all such schemes to undertake cost savings. One of the savings included a reduction in the annual maintenance costs for the energy centre. To achieve this saving the Lambeth Authority extended the contract term from 25 to a 40 year contract period.
What do customers pay?
A heating and hot water bill is made up of two main parts. A unit price (pence per kilowatt hour) for customer usage and an Energy Service Charge.
- Unit Price
The price formula is calculated in the first quarter of each year and new prices are effective from 1st April each year, fixed for the following 12 months.
To determine the price the prices a Gas Comparator is calculated, which is an upper limit for the tariff and is made of three components:
- Gas Tariffs (Standing Charge; unit rate
- Ga boiler maintenance
- Gas boiler replacement
The Gas Tariff is derived from the average gas tariffs of the six largest suppliers.
N.B. Heat generated through District Heating boilers is more efficient compared to a traditional gas boiler – which is typically run at 80% efficiency. The average gas price is therefore multiplied by 1.25 to account for the efficiency difference between the two different boiler types.
Through customer’s monthly bills and their annual price review we promote our online service heat.eonenergy.com, where amongst the services available, customers can check our Tariff Tracker to see if they could save even more money.
Energy Service Charge
The Energy Service Charge is a fixed indexed annual charge and covers the following elements:
- Dedicated, UK-based customer service.
- Running and maintenance of your Energy Centre, the district heating network and the
- Heat Interface in your property.
- Service and maintenance of your HIU, with no surprise repair costs.
- 24/7 breakdown and emergency helpline.
The Energy Service charge is calculated using annual costs of both Gas Boiler Maintenance and Gas Boiler replacement as well as the average standing charge from the Gas tariffs described above.
The charge for the period 1.4.2015 to 31.3.2016 is £400.25 plus VAT.
A price review letter is circulated to all customers 30 days prior to the commencement of the new tariff contract year. This notifies customers of both the unit rate and the Energy Service Charge for the next 12 months from the price date review.
N.B. Under the contract with the London Borough of Lambeth, Regenter are responsible for the payment of tenants Energy Service Charge to E.on.
What standards of service should I expect?
E.on have a Guaranteed Standards for Customer Service. This provides a number of customer service commitments. The Guaranteed Standards of Customer Services is available from the MFN Housing Office or the E.on website.
What statutory protection can I expect?
E.on’s Standards of Service sets out the standard of service and associated complaints procedure. However if a complaint cannot be resolved there will be shortly the opportunity to refer to independent adjudication.
It is expected that a voluntary industry initiative known as Heat Trust will be implemented this year. This will set out a common standard of quality and protection for the supply of heat. All customers will be notified when the above organisation has been officially launched.
Who is responsible for different parts of the service?
E.on are responsible for maintaining the District Heating Service and Heat Interface Unit (HIU). This is known as the primary system. Any repairs to the domestic secondary system for example radiators are the responsibility of Home Owners.
N.B. Under the contract with the Authority, Regenter are responsible for the repair of the secondary system for tenants.
Regenter Myatts Field North Limited