The cost of heat is determined by calculating the average cost of gas consumed during the year*1 and dividing this by the overall system’s efficiency*2. Depending on the system efficiency and the cost of gas, it will dictate the cost of heat to the residents*3.
Frontline uses an independent energy broker to guarantee the most competitive gas rate. Frontline also has a dedicated Engineering Department who generates the annual efficiency reports and proposes efficiency upgrades to the management company. This combination of trying to increase the site efficiency and reduce the cost of gas, aspires to reduce cost of heat to the resident.
*1 The reason why a full year is taken into consideration, is to take account the variation in costs due to high consuming (winter) and low consuming (summer) periods throughout the year. By considering both high and low bills relative to the consumption, a seasonal or average cost of gas can be determined. This can be illustrated by the following expression.
*2 The overall system efficiency takes the following into consideration:
Seasonal Boiler Efficiency
Boiler Standing Losses
Distribution Standing Losses
All thermal losses between the boiler and HIU
This can be illustrated by the following expression.
*3 The average cost of heat is therefore determined using both figures described above. This can be illustrated by the following expression.
E.g. If the annual unit cost of gas was € 0.06 / kWh and the system is operating at 50% efficiency, the resultant cost of heat would be € 0.12 / kWh to the resident.
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