Reducing consumption at Lee’s Rest Houses through metering

Project Summary and Key Outcomes

Challenge

Proving that charging based on consumption rather that by flat rate significantly reduces consumption, cost and greenhouse gas emissions.

Method

Install end-user heat meters into the development as part of a programme of wider renewal works, and to demonstrate to both the operator and residents that metering can reduce consumption without negatively impacting on resident wellbeing or comfort in a supported housing setting.

Results

• Heat consumption reduced by 51.5%
• Hot water consumption reduced by 33.0%
• Weekly heating costs dropped from £13.90 to £7.60 pre-billing and further to £5.28 post-billing
• Improved transparency and fairness in billing for residents

Key Impacts

1. Metering made residents more aware of their consumption, resulting in energy savings with no compromise to comfort or wellbeing.
2. Metered billing helps residents to have better control of their heating bills, saving the average resident almost £450 per year.
3. The reduction in heat consumption reduces both cost and carbon for operators, without the need to significantly invest in extensive capital works.

Transitioning from flat rate to metered consumption

As part of the renewal of the heating system, the operator of the development wanted to move away from charging residents a flat-rate, to consumption-based billing and so decided to install end-user heat meters as part of the works. Due to the nature of the previous system, metering wasn’t possible, and so residents had for many years been charged £13.90 per week, regardless of their actual consumption. The operator was concerned that a sudden transition may lead to residents self-disconnecting, and so the decision was made to heat meter consumption, but to continue charging the flat rate for a year after the meters had been installed.

Phased Implementation: Planning, Metering, and Resident Engagement

Switch2 delivered the metering and billing elements of the modernisation works, and due to the client’s concerns around the resident’s reaction to the transition from flat rate to metered billing, a phased approach was taken:

1. Infrastructure upgrades: Outdated elements of the heat network removed, and modern plant installed.
2. Installation of end-user heat meters: End-user smart meters installed into 120 apartments.
3. Monitoring Period: A 12-month monitoring period commenced to gain insight into resident consumption and likely new billing costs. Flat rate billing remained in place during this time.
4. Resident Engagement: Switch2 visit residents to educate about energy consumption and the benefits of metered billing.

Consumption Reductions and Behavioural Change Driven by Metering

Following the installation of meters, the following consumptions patterns were observed, at the final customer meter across the 120 properties:

The introduction of end-user heat meters, saw a 51% reduction in heat consumption (from 943,013 kWh to 457,421 kWh) and a 33% reduction in hot water (from 2,129m³ to 1,426m³). The amount of carbon that these reductions have led to is equivalent to 88,815kgCO2e (or 89t CO2e).

This reduction demonstrates that the presence or awareness of metering has a significant impact on consumption. If residents had been on metered billing during this time, their weekly bill would have dropped from £13.90 to £7.60, an annual saving of £327.60 per apartment.

Following the monitoring period and the start of metered billing, further reductions in consumption took place. These changes resulted in another reduction to £5.28 per week. The introduction of heat metering therefore resulted in an average annual saving of £448.24 per year per apartment.

Lasting Impact of Metering on Cost, Consumption, and Carbon

The installation of end-user heat meters as part of the modernisation works at Lee’s Rest Houses delivered significant benefits in both energy efficiency and cost reduction. The phased approach, focusing first on consumption visibility before transitioning to metered billing, proved highly effective. Residents responded positively, with consumption dropping by over 50% for heat and 33% for hot water even before billing changes were introduced.

The implementation of consumption-based billing generated average annual savings of up £448 per apartment, a 62% reduction from the original weekly charge, highlighting the value of metering and resident engagement in driving behavioural change, cost reduction and efficiency improvement in communal heat networks.