Warm weather blesses consumer, plagues producer

Photo: Mihkel Maripuu

While the ongoing winter has made many happy by significantly smaller heating bills, heat companies are rather sulky.

At long last, snow and sub-zero temperature arrived this week-end; before that, the winter was the autumn kind – all this clearly reflected by the sunken heat production and consumption rates, at end of last year.

As assured by Eesti Gaas marketing manager Marge Randmaa, gas was consumed over 50 million cubic metres less in 4^th quarter 2013, year-on-year. «The greatest gap came in December. While, in 2012, it was minus 6.7 degrees [Celsius – edit], last December had 2.3 degrees of warmth,» commented Ms Randmaa.

Last November was above-average warm as well, by 1.2 degrees year-on-year. Due to the warmer weather, clients of  Tallinna Küte, for instance, consumed a whopping 23 per cent less in November and December, year-on-year.

For Tallinna Küte, last year was among the rare ones when heat consumer price failed to rise by the end of the year, rather declining by four percent. According to Tallinna Küte press secretary Olga Petrova, this was also caused by the switch from natural gas to alternative and more economical fuels. 

Namely, Tallinna Küte produces a third of its heat from alternative fuels like wood chips, peat and domestic waste; the rest from main fuel – natural gas. The warmer the weather, the less heat is produced from natural gas and the more favourable the price; heat produced by renewable fuels and domestic waste is cheaper by almost a fifth.

As confirmed by representative of Eraküte, offering district heating in seven cities of Estonia, their clients consumed a fifth less this November and December, year-on-year, saving up to €800,000. In almost all of its districts, Eraküte has taken heat prices to optimal levels, using the economical renewable fuels.

According to Eesti Energia pres representative Eliis Vennik, the warm weather definitely has an impact on their results; to which degree, she was not yet prepared to comment. The company intends to reveal impact of warm weather on sales by end of February.

At the same time, warm weather is not the only factor impacting heat consumption. As explained by Arbo Reino, customer service chief at heat producer Adven, heat consumption also depends of inside temperatures desired, winds, sunshine, use of additional heating devices, and consumption not related to weather. 

«Therefore, we may assess by temperatures that, compared to 2012, consumption in October and November fell five to ten, in December 25-35 per cent,» said Mr Reino.

People polled by Postimees did include some for whom the warmer weather brought no significant gains. Still, the majority said they had saved up to twenty euros a month, owners of larger private houses up to €80. 

According to Marek, dwelling in a newly renovated apartment house in Kalamaja, the warm winter hasn’t meant much savings for them, as their home needs heating whether it is five degrees warm or cold. In a 38 square metre apartment nearby, in a house built at the start of last century, the December heat bill was smaller by over €20 (dropping from €51 to €27, year-on-year).

Rita, who lives in a non-renovated panel house at Mustamäe, claims an indisputable monetary gain. Her December bill fell from €75 to €59 i.e. by over €15.

«At first glance, this is no big money. Even so, it’s significant for a pensioner. I’m satisfied, the sums are smaller, what more do you wish,» said the lady.

Even though the house, built in 1968, has not been renovated, it keeps quite warm, according to Rita. Sometimes, she wishes it were cooler – having to keep the kitchen window constantly open to let some heat out. In the five storey building, the heating is done according to weather – the boiler house is equipped with weather-sensors.

Rita, a member of the apartment association board, says the house has not been renovated as they are still paying an old loan not desiring to take on a new one. «Quite possible, however, that we will go for it next year. Right now, we want to find out how much we would win. According to energy audit, the house is in quite good shape,» she said.

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Builders happy with warm winter

In construction, the warm weather has been welcome. Due to lack of snow, extra time has been acquired to finish up various tasks.

«The warmer-than-usual winter has been positive for construction, allowing us to finish all that was planned by due date, in not too much hurry,» said NCC Ehitus AS chairman Toomas Alle.

According to Mr Alle, state-of-the-art technology does make it possible to work in the cold winters; even so, this takes more money and time.

The same is echoed by Nordecon CEO Jaano Vink – especially, the warmth is a blessing in road construction.

«Warm weather helps prolong various building processes which, otherwise, would have already stopped – totally or partially. Also, it is somewhat easier to ensure good quality, with the occasional rain instead of snow and frost, temperatures staying above zero,» explained Mr Vink.

Mr Vink referred to modern technology allowing lots of works in hard weather; even so, in Estonian climate, it is more prudent and rational to work during the milder seasons. 

Lemminkäinen Eesti chief Sven Pertens also underlined the financial benefits of the warmer winter. «Especially for those building roads and infrastructure, the 2013 financial results were better, thanks to this,» said Mr Pertens.

Mr Pertens added that the warm winter has had a considerable impact on companies involved in road maintenance i.e. who clear snow and do de-icing. «Usually, the contracts cover certain sums, for entire year. Thus, with less snow to clear and no ice to fight, they will save resources,» he explained.

«On the one hand, the warm winter lengthens working season; on the other hand, roam maintenance money is saved,» said he.

Even so, construction still remains seasonal work, according to Mr Pertens, as the people need rest. «Road builders usually rest in the winters; surely they will rest this year as well, no matter the weather,» said Mr Pertens. To summarise: all construction companies contacted by Postimees confirmed the warm winter has been a blessing, helping improve results.