Our energy managers keep track of the effect that energy prices have on selecting the best value way of heating our clients’ property assets.
Stockport Homes is a housing stock management company owned by our joint venture partner Stockport Metropolitan Borough Council. One of their housing estates had been using a combined heat and power (CHP) unit as a low-cost district heating source in the 1990s. By 2001 the price of energy had fallen to such an extent that the unit became uneconomic to run, and it was taken out of use. However, this experience had given our energy managers experience and clear data about combined heat and power as an economic model.
Fluctuations in energy prices continued, and by 2006 they had risen to the point where we carried out a reassessment of CHP as an energy source. Using our prior experience, we were able to analyse the market and forecast how the cost model would behave in the medium term. The outcome was our recommendation that it was a viable option to re-commission the unit. It is now delivering cost savings to Stockport Homes, and we will continue to monitor its suitability.