Smart Technology & Software Feature
Smart Technology & Software
A smart approach to the energy crisis
Could smart metering technology help ease the financial pain of rising living costs? Insite Energy’s Gareth Copland, considers the pros and cons
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avigating a disaster pile-up of a global pandemic followed by worsening energy and cost-of-living crises is proving increasingly challenging for many housing providers. Residents are under
financial stress, particularly in the social housing sector where there is a higher proportion of vulnerable tenants, and significant numbers have already experienced furlough and job losses during Covid times. For housing schemes with heat networks, the situation is even more dire,
because the national energy price cap does not apply. Consequently, numerous heat network residents are suffering tariff increases several times higher than those experienced by households with individual boilers. In many cases, that has already meant increases of over 300%. Worse is to come, as the preferential three-year fixed-rate energy tariffs that lots of housing associations used their heavyweight buying power to secure are now coming to an end. Tese contracts are now being renegotiated, oſten with big price rises. When you also factor in that heat network customers can’t switch energy providers to get a better deal, the picture looks bleak indeed.
RISING DEBT It is unsurprising, then, that many housing association residents are struggling to pay their bills. A comparison of two similar heat network sites for which Insite Energy provides metering and billing – one housing association (HA) and one privately-owned scheme – reveals alarming differences in the scale and character of resident energy debt. Te HA scheme currently has nearly four times as much debt as the private development. Furthermore, the private scheme’s figure is consistent year-on-year and is largely down to forgetting to organise payment – one chase with the resident and the debt is settled. Te housing association residents, meanwhile, simply can’t afford to pay. Since the start of the pandemic, many housing associations have been striving
to protect their most at-risk residents from financial hardship by absorbing the increasing costs of unpaid energy bills. However, as larger and larger numbers of residents who were not previously considered vulnerable fall into arrears, this is becoming unsustainable. Cash reserves are exhausted, but people’s money struggles are multiplying. Te number of tariff-related queries we’re receiving is the highest ever – 2022 figures are currently five to six-times higher than last year.
SO, WHAT’S THE SOLUTION? Sadly, there are no easy fixes to this unprecedented situation. But there are some proactive steps that can be taken, with judicious use of modern technology, to minimise costs and ease some of the financial stress for both residents and housing providers. Installing smart metering technology is one such measure. At a time when
housing associations need to be seen to be doing something practical to help their residents, this is a very constructive, measurable and accountable way of making a difference.
THE POWER OF DATA It might seem counterintuitive to invest in new technology during a financial crisis. At first glance, it may seem that you are loading more costs onto residents already struggling to pay their bills. However, it’s now known that access to
real-time energy usage data from PAYG smart metre displays leads to changes in behaviour that can dramatically reduce personal consumption. In our own client base, we’ve observed that residents who can easily monitor how much heat and hot water they’re using each day consume up to 55% less than credit- billed customers who have no way of knowing what actions could really impact their bill, or by how much. Aſter all, once a bill arrives a month-and-a-half aſter the fact, it’s very hard to know what behavioural changes could have made a difference, and by how much. Another benefit of smart metering technology is that when used alongside
a digital scheme management platform, housing managers are equipped with real-time data about occupancy levels and peak-usage patterns. Tese can also alert them to any potential issues within the network, which can then be resolved quickly. Tis is important because, if systems are underperforming or bypasses are running incorrectly, wastage can continue undetected, with expensive consequences. Furthermore, as well as speeding up repairs, remote diagnosis via field service management soſtware such as Big Change, can save maintenance teams copious amounts of time and fuel.
CONVENIENCE, COMFORT AND COST While smart metering solutions have historically been regarded by some as best suited to private build-to-rent developments with ‘tech-savvy’ tenants, the stats show that social housing residents respond very well to the technology too. Earlier this year, a survey of residents using a digital smart-metering pay-as-you-go app for heat networks called KURVE showed that 95% of
www.housingmmonline.co.uk | HMMOctober/November 2022 | 35
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