The principle behind allocation accounts and the unit price calculation
How are heating costs allocated?
Reply: The basic principle behind heat cost allocation is called ’allocation keys’. Allocation keys allocate the costs of heating according to fixed and individual units. This is because all residents have the advantage of the basic loss (pipe and revenue loss) by keeping the heating system turned on and that is why they must contribute to cover the costs.
When the administrator, on the basis of current regulations, has decided which allocation key shall apply to the property’s heating costs and the total consumption of the property is known, Brunata can calculate the overall allocation of the cost. Once we know the cost allocation, we can calculate the unit cost and cost per home/flat.
Why does the unit cost increase and how does that affect me?
Reply: Unit cost increases may be due to the supplier charging more for heating.
Another reason may be that the heating used in common areas is registered with another meter type than the one used in the flats. If the heating consumption in the common areas increases, the total heating consumption of the property increases, although the number of units does not. That is why fewer units have to cover more heating.
It could also be due to the installation of new meters where each unit refers to a larger consumption than the units of the old meter. As a result, the total heating cost has to be allocated across fewer units and the unit cost will therefore increase. However, this does not affect the total amount the resident pays for heating.
In the case of a new meter where each units refers to a smaller consumption than a measuring unit in the old heater, the total heating cost will be allocated across more units and the unit price will therefore be reduced.
Why does my allocator not show the unit cost?
Reply: The heating emitted by the radiator is measured very accurately, but we will not know the cost until we receive the final settlement from the utility company.
When a property uses heating, the total consumption of for instance district heating is measured by an energy meter known as the main meter. The cost of the property’s total heating consumption is calculated on the basis of this measurement. We then use the heat cost allocator units to allocate the total cost and calculate the unit price.
Somewhat simplified, it can be explained as follows: We add up all registered units from the property’s heat cost allocators. We then divide the total bill of the property by the total number of units in order to get the price per unit. We then multiply each flat’s total number of units by the unit cost to establish the total cost for the flat.
What is the approximate cost of a unit?
Reply: Albeit with every possible reservation, the cost with Brunata’s electronic meters (i.e. meters with LCD display) is usually DKK1-2 per unit.
The cost with Brunata’s capillary meter (RMK87) is usually DKK100-200 per unit.
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