In 2016, private consumers of heat in Ukraine receive the heat from the following sources:

1. The most common one is electricity, which means electric boilers, electric fireplaces and heaters of different kinds. Skipping some details, in most cases the ultimate source is hydropower. Possible sources are nuclear power and thermal power stations. For the most of final consumers, the distributing functions are performed by HCS (Housing and Communal Services companies) or companies of “Region-Town-Energo” type. At the beginning of 2016 the cost of “elektroheating” is about 1 UAH/kW.

To take into account getting the heat directly to the consumer’s apartment, house, or other compartment, to the cost of heat generation we will add amortized cost of the equipment, such as cost per hour based on the “25 years of the equipment running”. In this example we get 1 kW/h via ceramic heating plate 1200 UAH of cost. It serves at least 25 years, which means 25х365х24 = 219000 hours, or “amortized cost per hour” of 1200/219000 = 0,0054 UAH, i.e. it is inessential. Continue reading →