District Heating

captainhindsight_2

Hello, there is a new development going on in town near me. I have been looking to buy a couple to add to my BTL portfolio.

Something I have never come across is the heating for all the houses is by a central district heating system which is owned and maintained by the developer and there is an annual maintance fee + the houses are metered so the tenants will get billed for what they use which is fair enough.

My concerns are:

Is this market regulated? Because there is no real alternative so in theory they could massively hike up the price per unit for the energy.

Are they reliable? What are peoples experiences with district heating?

According to the guy that I have been talking to a lot of new developments are heading this way due to reducing carbon etc..

System

Google is your friend. May be worth a read:

http://conversation.which.co.uk/energy-home/district-heating-schemes-choice-regulation-ofgem-renewable-energy/

Households on mains electricity and gas are also protected by regulations set by Ofgem that suppliers have to comply with as a condition of their licence to supply energy. The same is not true for people on district heating. There is no consumer protection regulation at the moment and, therefore, no standards of service for the sector.

lstar337

captainhindsight wrote: »

Is this market regulated? Because there is no real alternative so in theory they could massively hike up the price per unit for the energy.

Presumably these homes are wired for electricity?

So there is an easy alternative, electric heating.

No new builds will be allowed to have gas heating soon anyway, so alternative methods will become the norm.

sheffield_lad

lstar337 wrote: »

Presumably these homes are wired for electricity?

So there is an easy alternative, electric heating.

No new builds will be allowed to have gas heating soon anyway, so alternative methods will become the norm.

True if they stick with carbon zero by 2016 we may lose gas in new builds however that would also be the case with electric which is over three times the unit cost. I also see poorly installed GS and AS heat pumps uggggghh give me gas anytime.


I have known folk on community heating who have never had a problem with it like the other poster suggested google it.


GL

lstar337

sheffield_lad wrote: »

True if they stick with carbon zero by 2016 we may lose gas in new builds however that would also be the case with electric which is over three times the unit cost. I also see poorly installed GS and AS heat pumps uggggghh give me gas anytime.

And lets not forget that these alternatives will only need to be considered IF the district heating becomes a problem, which I doubt it will.

It wouldn't put me off. If there really were no other option then maybe, but there are other options, and if we do have to meet zero carbon then those options are only going to grow.

Smiley_Dan

If it's a new development you'd hope the levels of insulation and air tightness would make a heat pump suitable.

And of all people, I'd hope captainhindsight would be purchasing a house with adequate insulation