HOT|COOL NO. 1/2019 - "District Heating Finance and Economy"

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From this picture it is also very clear who will be approached by the DH company to help in lowering the return even more – the ones with the highest return temperature and the ones in need of very high flow temperatures. RESULTS FOR THE DH COMPANY In Viborg DH Company, this has been a constant focus area since 1995. The motivation tariff has done a lot of good for the customers and the company – but there is still some way to go. So, the motivation tariff is here to stay for a long time to come. The motivation tariff was introduced in 2002, and since then the temperature has dropped step by step over the years. In 2002, the yearly average supply temperature was 80°C, and in 2016 it was 68°C. In 2002, the annual average return temperature was 50°C, and in 2016, it was 40°C. This is illustrated above.

If the consumer has a heating installation that delivers a return temperature above the calculated temperature plus 6 degrees, they will have to pay extra. The extra cost is 1 % per degree that they are above the threshold. The extra cost can often finance needed improvements in the heating system that can potentially also provide a better comfort in their home. This extra fee has proven very effective to motivate building owners to upgrade their heating system, and the reduction is the red area that has the biggest effect on the over all system. CUSTOMER INTERACTION IS KEY The intention of Viborg DH Company is NOT to make their customers pay more. The intention is to develop the heating system and thereby lower the cost for all customers. Therefore, Viborg DH Company actively approaches the customers with the worst delta-T (the highest return temperature) and assist them with advice on how to modernise and upgrade their system. The result is that the customers save money, and at the same time the DH company saves money, which then again can be transformed into lower prices for all customers. The customers who pay more due to the motivation model are not just left hanging there, paying more year after year. They are offered help to lower their heating bill by the DH company, which approaches the customers to offer assistance and guidance.

Supply temperature o C

It has been calculated that the average supply temperature can be lowered by another 4-5°C over the coming years, and still cover the comfort needs of all consumers. But at the same time, the return temperature has to go down as well. The overall economy for the DH company is very positive. The motivation tariff costs the company more in reductions than what is paid extra from the customers who have to pay more based on the motivation tariff. Looked at this way, the motivation model actually costs the DH company around 270,000 Euro per year.

Supply temperature o C

The two pictures illustrate the supply- and return temperatures set for all the customers of the DH company. In 2002, it is clear that many customers need a very high supply temperature and only manage to lower the temperature a bit. Whereas the picture from 2009 shows that there are very few customers in need of the very high supply temperature, and that many have managed to decrease the return temperature. In short, the motivation tariff has helped a lot.

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