SNABBANALYS TEMPERATURES CHOSEN BY TENANTS WITH INDIVIDUAL METERING AND BILLING FOR HEATING

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SNABBANALYS ANALYSIS APRIL 216 MAGNUS WAHMAN, MATTON COLLECTION TEMPERATURES CHOSEN BY TENANTS WITH INDIVIDUAL HEATING Higher temperature in multi apartment buildings after introduction of individual metering and billing Statistics from seven public housing companies using individual metering and billing for heating in 7,865 apartments in total in Sweden indicate that most residents in these buildings opt for an indoor temperature of around 21 22 C. A few residents choose a lower temperature and a few choose a higher temperature. On average, tenants choose 21.7 C. This is slightly higher than the temperature of 2 21 C supplied in the buildings of property owners without individual metering and billing for heating. is to investigate what temperature tenants actually choose when given the opportunity to make their own decisions about the temperature through the individual metering and billing of heating. Article 9 of Directive 212/27/EU of the European Parliament and of the Council on energy efficiency ( Energy Efficiency Directive ) imposes a requirement for the individual metering and billing of heating in apartments. However, More information The purpose of this report this requirement only applies if it is technically possible and cost-effective. A precondition for the individual metering and billing of heating being cost-effective while resulting in energy savings is that a clear majority of residents choose a lower temperature in their apartments than what they would have had without individual metering and billing. Rents in Sweden include heating Apartment rents in Sweden include heating, with very few exceptions. The public housing companies try to Therese Rydstedt 8-46 55 16 therese.rydstedt@sabo.se or Per Holm SA B O S W E DSI S AHB O A SSSVE OC R IIG ATEISOA NL LO MFÄPNNYT UB L I CT IHGO AUS BO I NG S TAC DO S FM ÖPA RETA NIES G 8-465521 per.holm@sabo.se XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX 1

maintain the same temperature for all apartments in their property holdings (usually 2 21 C) to optimise the operation and minimise energy use. The temperature is controlled centrally in the building and residents cannot increase the temperature themselves. The Public Health Agency of Sweden recommends a permanent indoor temperature of 2 2 C for the public housing sector and 22 24 C for vulnerable groups. The potential for the individual metering and billing of heating to generate energy savings must thus be based on the current indoor temperature provided of 2 21 C in the property holdings of the public housing sector and the recommendations of the Public Health agency. The report shows what temperature residents opt for in houses with comfort measurement and energy measurement. Comfort measurement means that the indoor temperature, not energy, is measured in the apartment. The purpose of comfort measuring is to give residents the opportunity to affect their costs for heating. The financial incentive for residents is the same with comfort measurement as for energy measurement, that is to say that if you choose a lower temperature in the apartment you pay less than if you choose to have a higher temperature. The business model for comfort measurement compensates for the risk that the resident opens windows to lower the temperature. In addition, customized district heating heat exchanger output temperature to the radiators is automatically adjusted at high outside temperatures and at increased solar radiation in spring and autumn. The result of this study shows what residents opt for when they receive a financial incentive. Hence, the result is therefore representative regardless of method of measurement. SUMMARY AND CONCLUSIONS Statistics from seven public housing companies using individual metering and billing for heating in 7,865 apartments in total in Sweden indicate that most residents in these buildings opt for an indoor temperature of around 21 22 C. A few residents choose a lower temperature and a few choose a higher temperature. On average, tenants choose 21.7 C. This is slightly higher than the temperature of 2 21 C supplied in the buildings of property owners without individual metering and billing for heating. We may thus conclude that the individual metering and billing of heating is not cost-effective when compared with a centrally controlled temperature, and nor does it result in any improvements to energy efficiency. The reason is that only a few tenants actually opt for a temperature of less than 2 21 C. The introduction of individual metering and billing for heating in Swedish would force through unprofitable investments, increase energy use and thus counteract the purpose of the Energy Efficiency Directive. DIAGRAM OF TENANT S CHOICE OF TEMPERATURE WITH INDIVIDUAL METERING AND CHARGING FOR HEATING, NUMBER OF APARTMENTS number of apartments 5 4526 4 1954 2 81 1 1 11 C 18 19 C 55 199 19 2 C 2 21 C 21 22 C 22 2 C C choice of temperature SABO has contacted member companies that have individual metering and billing for heating and collected data on tenants choice of temperature. All responses received are presented in this report. 2

Familjebostäder i Göteborg This company has been using the energy metering measurement method since 211 in 74 apartments. The apartments have had temperature meters since 215. However, charging for heating has recently been discontinued. The rent for these apartments does not include any heating. Heating input is metered and compiled every month and the tenant is charged SEK.74 per kwh used (215 price). The price per kwh corresponded to the average actual budgeted cost for the year in question. The average temperature in those buildings where the company had individual metering and charging for heating was 22.5 C for the period April 215 up to and including March 216. The following table indicates how many apartments chose what temperature. 18 5 1 267 Mkr 25 www.familjebostader.se Anna Staxäng, hållbarhetsstrateg tel: +46 1-71 67 71, anna.staxang@familjebostader.se 19 <2 2 <21 11 16 49 71 9 1 Average annual temperature: 22,5 Total with comfort metering: 69

Helsingborgshem This company has been using the comfort metering measurement method since 211, in,674 apartments with comfort metering means measuring temperature in each apartment. Tenants can choose a temperature of between 18 and 2 C. The rent includes 21 C. If the tenant decides to increase the temperature in the apartment to above 21 C, this entails a cost of SEK 45 per degree and month for a normal-sized three-room apartment (plus kitchen) of 75 m2. If the tenant decides to reduce their temperature instead, a deduction is made from the rent by the same amount. The temperature is automatically set at 21 C if it falls below 18 C. This is to maintain a good climate for the tenants and the building. Charges for heating are made between October and April. No charges are made when the outdoor temperature is more than 12 C. The average temperature in those buildings where Helsingborgshem has individual metering and billing for heating was 21.7 C in 214. The following table indicates how many apartments chose what temperature. 12 89 Mkr 2 www.helsingborgshem.se Britt Bengtsson, energicontroller, tel +46 42-2 82 29, Britt.Bengtsson@helsingborgshem.se 1, 6,2 19 <2 9 2 <21 564 15 1 567 4 1 185 2 258 7 Average annual temperature: 21,7 Total with comfort metering: 674 4

Höganäshem This company has been using the comfort metering measurement method since 211, in 5 apartments. The tenants can choose a temperature of between 18-2 C. The rent includes 21 C. If the tenant decides to increase the temperature in the apartment to above 21 C, this entails a cost of SEK 55 per degree and month for a normal-sized three-room apartment (plus kitchen) of 75 m2. If the tenant decides to reduce their temperature instead, a deduction is made from the rent by the same amount. If the temperature falls below 18 C the temperature is calculated as 18 C. Charges for heating are made between October and April. No charges are made when the outdoor temperature is more than 12 C. The average temperature in those buildings where Höganäshem has individual metering and billing for heating was 21.7 C in 215. The following table indicates how many apartments chose what temperature. 1 4 18 Mkr 14 www.hoganashem.se Ludvig Ekman, driftadministratör, tel: +46 42-78 81, ludvig.ekman@hoganashem.se 19 <2 8 2 <21 5 14 12 4 1 7 2 5 Average annual temperature: 21,7 Total with comfort metering: 5 5

Kalmarhem This company has been using the comfort metering measurement method since 2, in 92 apartments. Tenants can choose a temperature of between 18 and 2 C. The rent includes 21 C. If the tenant decides to increase the temperature in the apartment to above 21 C, this entails a cost of SEK 55 per degree and month for a normal-sized three-room apartment (plus kitchen) of 75 m2. If the tenant decides to reduce their temperature instead, a deduction is made from the rent by the same amount. Charges for heating are made between September and April. No charges are made when the outdoor temperature is more than 12 C. The average temperature in those buildings where Kalmarhem has individual metering and billing for heating was 21.7 C in 215. The following table indicates how many apartments chose what temperature. 4 7 15 Mkr 48 www.kalmarhem.se Thom Renström, energicontroller, tel: +46 48-44 75, thom.renstrom@kalmarhem.se, 19 <2 4 2 <21 14 15 52 8 26 5 69 7 Average annual temperature: 21,7 6 Total with comfort metering: 92

Lunds Kommuns Fastighets AB This company has been using the comfort metering measurement method since 24, in, apartments. The tenants can choose a temperature of between 18 and 24 C. The rent includes 21 C. If the tenant decides to increase the temperature in the apartment to above 21 C, this entails a cost of just over SEK 5 per degree and month for a normal-sized three-room apartment (plus kitchen) of 75 m2. If the tenant decides to reduce their temperature instead, a deduction is made from the rent by the same amount. Temperatures below 18 C are calculated as 18 C. Temperatures below 16 C are charged as 24 C to avoid apartments cooling down. Charges for heating are made between October and April. No charges are made when the outdoor temperature is more than12 C. The average temperature in those buildings where LKF has individual metering and billing for heating was 21.5 C for the period January 215 March 216. The following table indicates how many apartments chose what temperature. 9 885 Mkr 24 www.lkf.se Bertil Lundström, teknisk chef, tel: +46 46-5 85 5, bertil.lundstrom@lkf.se 2,1 19 <2 62 2 2 <21 88 2 55 84 7 1 6,2 Average annual temperature: 21,5 Total with comfort metering: 7

Uddevallahem The company has been using the comfort metering measurement method since 25, in 2 apartments. The tenants can choose a temperature of between 18 and 2 C. The rent includes 21 C. If the tenant decides to increase the temperature in the apartment to above 21 C, this entails a cost of SEK 45 per degree and month for a normal-sized three-room apartment (plus kitchen) of 75 m2. If the tenant decides to reduce their temperature instead, a deduction is made from the rent by the same amount. The temperature is automatically set at 21 C if it falls below 18 C. This is to maintain a good climate for the tenants and the building. Charges for heating are made between October and April. No charges are made when the outdoor temperature is more than 12 C. The average temperature in those buildings where Uddevallahem has individual metering and billing for heating was 21.5 degrees in 215. The following table indicates how many apartments chose what temperature. 4 29 Mkr 81 www.uddevallahem.se Andreas Skälegård, energiingenjör, tel +46 522-65 5, andreas.skalegard@uddevallahem.se 19 <2 2 6 2 <21 8 25 1 1 11 4 1 Average annual temperature: 21,5 8 Total with comfort metering: 2

Övikshem This company has been using the comfort metering measurement method since 21, in 12 apartments. The tenants can choose a temperature of between 19 and 2 C. The rent includes 21 C. If the tenant decides to increase the temperature in the apartment to above 21 C, this entails a cost of SEK 8 per degree and month for a normal-sized three-room apartment (plus kitchen) of 75 m2. If the tenant decides to reduce their temperature instead (though no lower than 19 C) a deduction is made from the rent by the same amount. Charges for heating are made between October and April. No charges are made when the outdoor temperature is more than 14 C. The average temperature in those buildings where the company has individual metering and billing for heating was 22. C for October 215 to March 216. The following table indicates how many apartments chose what temperature. 14 227 Mkr 52 www.ovikshem.se Göran Söderlund, energi- och miljöansvarig, tel: +46 7-191 98 72, goran.soderlund@ovikshem.se 19 <2 6 5 2 <21 5 4 9 2 6 51 1 8 Average annual temperature: 22, Total with comfort metering: 12 9

SABO SVERIGES ALLMÄNNYTTIGA BOSTADSFÖRETAG Besöksadress Drottninggatan 29, Box 474, 11 29 Stockholm Tel 8-46 55, hemsida www.sabo.se, e-post info@sabo.se Grafisk produktion: SABO Kommunikation