Steve Morris, Head of Maintenance, Insite Energy
In recent months, we’ve seen an upsurge of interest among energy managers in finding and fixing equipment faults across their heat networks. More and more often, the topic of repairs is coming up in conversation with clients. The exact reasons for this maintenance boom are unclear, but we can identify several common themes.
Firstly, the heat network sector is now reaching a level of maturity whereby the first wave of equipment and infrastructure at many sites is nearing the end of its natural life, resulting in more maintenance issues occurring.
There is also a growing awareness among housing associations and local authorities of the legal responsibilities associated with managing communal heating systems, as well as a sense that, when Ofgem steps into the newly created role of heat network regulator in the next couple of years, oversight and enforcement are likely to become even more intense and thorough. Many housing providers are seeking to put their house in order now, to avoid potential penalties in future.
As well as this, the spiralling cost of energy is causing residents to scrutinise their bills more closely than ever before, uncovering anomalies and inefficiencies that might have previously slipped under the radar. We’re seeing evidence of this in our own contact centre, where the number of tariff-related queries is the greatest it’s ever been – 2022 figures are currently five- to six-times higher than last year – with investigations sometimes resulting in the discovery of faults or system errors. Meanwhile, energy managers themselves, mindful of the financial pressures tenants are under, are keen to avoid any unnecessary excess costs caused by inefficient or poorly maintained systems.
As we’ve been saying for some time, the sooner housing providers address the ongoing maintenance of heating systems, the greater the benefits for everyone. It’s gratifying to see that the message is sinking in. Of course, it tends to be the large corporates, with easier access to funds and well-resourced governance systems in place, that lead the charge, while smaller organisations follow in their wake. And there is always a minority who don’t plan ahead or take action until they are legally compelled to do so. With increased regulations on the horizon, we will continue to advocate for immediate action.
Meters need most maintenance
Most commonly, the issues energy managers are looking to rectify relate to meters; where they may not be working or are not easily accessible, making it near impossible to tell if they’re working or not. In a surprisingly large number of cases – 10-15% – poor installation means they have never actually functioned properly in the first place. Often, the problem has been ignored, sometimes for years.
Other faults occur due to damage by customers or because of a straightforward mechanical failure. Lower-cost meters usually have a lifespan of five to six years, and, when they break, managers sometimes feel it’s not worth the expense of fixing them immediately because they’re so cheap to replace.
Investing in quality from the outset is always a good idea. However, even high-end models that last up to 16 years need periodic recalibration for accuracy and will, at the least, run out of power after 10 or 12 years, requiring a systematic battery-replacement programme.
Even if a meter is functioning well, there may be an issue with the connection to it that has either never worked or has developed a fault. Sometimes it may even be something as simple as incorrect labelling, meaning it’s unclear what the meter’s data refers to.
Take early action
The problems causing meter failure may not be complicated but resolving them usually requires maintenance teams to access properties, with all the cost, hassle and inconvenience to tenants that entails. So, it’s easy to see how many malfunctions can be left unfixed for some time.
However, the knock-on effects of avoiding repairs can be huge. Following the last update to the Heat Network (Metering & Billing) Regulations (2014), individual meters for final customers that provide accurate, detailed and transparent usage data became a legal requirement in most cases. Regulations also state that bills must not be estimated for more than three periods in a row.
Failure to comply can risk civil or even criminal penalties and, with tariffs skyrocketing, residents are likely to complain to Ofgem pretty quickly if charges are persistently inaccurate or if landlords are non-compliant. It’s always much better to take proactive action than to wait until you’re prosecuted!
Investing in improving the metering portfolio sooner rather than later can save a lot of pain and expense further down the line. Crudely designed systems and poor-quality hardware, while appearing to save money, can ultimately end up costing more in energy use and maintenance.
Energy managers can enlist the support of experts to evaluate the metering solutions they have in place and take advice on how to make improvements to avoid pricey mistakes.
Fewer faults
It’s worth considering including maintenance in metering and billing contracts. Regular meter servicing enshrined in a service level agreement can significantly lower the number of faults that occur – in our experience, we’d estimate the reduction to be around 20-30%, compared to in-house maintenance regimes. Third-party suppliers can take a more holistic approach as part of delivering a complete metering and billing service. They are best placed to identify meter faults straight away, and then repair them quickly, as well as working proactively to prevent them happening in the first place. It’s hard to dedicate the same level of internal resources to meter maintenance.
Furthermore, these types of full-service contracts should help to smooth out the cost spikes of unpredictable repairs while also ensuring good service for residents. A small, fixed annual fee is paid per unit for scheduled maintenance and then any unscheduled repair visits are charged at a much lower call-out rate and within an agreed timeframe. Admin costs are reduced too, as there is no need to coordinate a maintenance programme internally.
A systematic approach to maintenance is another means of reducing the number of physical visits needed to a given site. Through analysis of billing data, the billing provider can quickly identify and precisely locate faults and inefficiencies, so that repair visits only happen when and where they’re needed, lowering overall costs.
When including maintenance in a metering and billing contract, make sure that the fees charged by the service provider are transparent and based on actual costs. Additionally, assess contract length to avoid ending up being shackled indefinitely to high prices or poor service.
Whether maintenance activities are outsourced or not, energy managers cannot afford to neglect their meter portfolio. Ofgem’s installation as heat network regulator may not happen until 2024, but it is coming. Don’t leave it too late to complete all the property visits that may be needed to get your house in order. Your tenants will not thank you if you do. https://insite-energy.co.uk
