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Energy


Heating costs – it’s not all doom and gloom


With the threat of ever increasing energy prices, the pressure to make savings has never been more urgent. UK industry, faced with the need to remain competitive against the background of a credit crunch is being increasingly squeezed but it is not all doom and gloom according to Simon Garratt, marketing manager for Nortek Global HVAC, particularly when it comes to heating


temperatures but with factory and warehouse owners faced with an ever increasing overhead, the temptation is to resort to finding the cheapest heating system available, even though it is rarely the most energy efficient. Most manufacturers of heating systems are now looking to systems that deliver whole life costs as a way of making real energy savings. Short term, a cheap system might seem the right way to go, but don’t be deceived. Although paying for more energy efficient heating systems may not be a popular idea in the current economy, it makes tremendous sense when true value is looked at, rather than initial costs.


C


urrent industry regulations obviously insist that staff cannot work in cold


According to government information, the most reliable indicator of ‘value’ in the construction industry is the relationship between long-term costs and the benefit achieved by the end-user. And when it comes to the heating system, best value is gained from the system that achieves the required functionality at lowest cost when calculated over the whole life of the equipment. Whole-life cost analysis is an economic evaluation process solely for the purpose of assessing the true cost of constructing and running a building over a period of time, based on the functional requirements of the building. It is effective for new buildings, including design and build projects, and is a pre-requisite for all PFI contracts. The technique was originally used by the accountancy profession to compare outcomes when income varies over time, using today’s value or net present value as a starting point. Today, the methodology is used widely in many industries, although uptake in the construction industry is ‘quite small’, according to the BSRIA. Using these calculations, modern


manufacturers have proved that they can deliver energy savings of up to 70%, a significant reduction in running costs.


36 FACILITIES


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