Should students foot their own energy bill?
Adrian Barber of Prefect Controls delves into the debate surrounding the responsibility for payment of energy bills in student accommodation.
Is the prevalence of overconsumption and environmentally unfriendly practices in student housing a result of all-inclusive rent packages?
It has become common practice for many accommodation providers to include utilities in the rent, which appeals to students. Offering fixed rents makes marketing rooms easier and more attractive, as occupants don’t have to worry about paying the energy bill separately at the end of each month.
While surveys consistently show that students are concerned about sustainability, their principles may be challenged when faced with the choice between wearing a jumper or cranking up the thermostat, knowing it won’t affect their bank balance.
With the recent surge in energy costs, some providers are reconsidering charging occupants based on their consumption. Passing on energy costs can shield providers from uncertainties in price hikes and teach energy consumers of the future to be more cost-conscious.
We may start to see budget-friendly accommodation options emerging, akin to low-cost airlines. The headline rent may seem appealing, but additional charges for essentials like heating could make the offer less attractive.
Could this shift towards individual energy billing provide greater transparency, empowering occupants to choose how they utilise their allowance? Or does it pose the risk of cold, uncomfortable rooms, potentially leading to health and structural issues due to dampness and humidity?
Another proposed approach is implementing a ‘fair usage policy’. This involves including a set amount of energy in the rent, with additional consumption charged at an agreed rate. This could ensure comfortable living conditions, avoid problems caused by under-heating, and allow those who desire more warmth to have it at their own expense.
However, properties that charge residents individually for energy would need MID approved meters in each room, leading to significant installation costs, retrofitting challenges, and billing administration complexities.
While technological advancements are making individual energy measurement more feasible, the demand for it remains a question.
It’s likely that students, more than the general population, understand the importance of conserving energy and aren’t wasteful deliberately. It’s the unintentional wastage that needs addressing.
If room-by-room energy measurement becomes viable, attractive incentives could be introduced. Options like a rebate at the end of the term for responsible usage or implementing behavioural change programmes could yield positive outcomes. However, the latter would need to be repeated annually as new residents move in.
Accommodation providers understand the portion of their income allocated to energy. Altering their business model to lower rents and introduce ‘add-ons’ might be a step backward.
The key isn’t to restrict consumption but to identify and eliminate unnecessary energy use – like in empty rooms, constantly maxed-out thermostats, or heaters left on with windows open.
In such cases, implementing ‘automating control’ can significantly reduce wasted energy without limiting comfort. For example, a building equipped with automated central control saw a 50% decrease in heating load for over 400 bedrooms in just one year, saving nearly £70K annually.
Energy isn’t being limited; it’s being utilised efficiently.
Read more on this topic at www.prefectcontrols.com.
This article was featured in the June 2024 edition of Energy Manager magazine. Subscribe today to stay informed!