National Standards - EST Good Practice (GPG345)

Good Practice Guide 345 was last published in 2003 (although a new draft version is currently out for consultation). While this document attempts to provide a balanced comparison of the merits of electric heating along side other fuels in terms of energy efficiency and running cost, in many respects the information presented is now out of date and covers only half the story in relation to the true costs of owning a heating system.

Fuel Costs

The fuel prices used in GPG345 are based on those used in SAP 2001, i.e. some 5 years out of date. Clearly energy prices for both gas and electricity have risen sharply since 2003, however the increases in costs of gas to consumers have been higher than those for electricity, closing the differential between domestic gas and electricity prices.

In fact Energywatch – the independent gas and electricity consumer watchdog – reported in July 2006 that some energy suppliers had increased the cost of gas to their customers by as much as 92% since 2003, while the price of electricity had increased by only 54%.

With this trend likely to continue in the foreseeable future, documents such as Good Practice Guide 345 which aim to provide a comparison between electricity and other fuels are only able to provide a 'snap shot' view at any one point in time. With the current volatility of the energy markets its recommendations must be taken in context.

Fuel Costs vs Costs of Ownership

Fuel costs are only part of the real 'running' cost of a heating system, which must also include the cost of installation, any requirements for annual servicing and maintenance (such as mandatory safety inspections for gas boilers) and the expected lifetime of the system. Good Practice Guide 345 does not address these issues, which in fact demonstrate that over the lifetime of the system, electric heating provides significant savings to owners when compared with gas.

This is covered in further detail in the (Housebuilder and Developer > Why use electric heating > Benefits to the Occupier > Lifetime Ownership Costs) section of this website, but can be summarized by the table below:

Electric Gas
Installation cost1 £1500 £3000
Annual Fuel Cost2 £264 £138
Annual Safety Check3 £0 £75
Service / Maintenance4 £0 £117
Lifetime (years)5 15 10
Annual running cost £264 £330
Lifetime cost per annum6£364£630
  1. Typical electric storage / panel heater installation vs Condensing gas boiler c/w 6 radiators and controls. Excludes hot water cylinder.
  2. Annual fuel costs for heating and hot water, BRE GPG345
  3. Source: National Landlords Assn
  4. British Gas Central Heating Care, less cost of annual safety check
  5. Industry estimates
  6. (Annual running cost x lifetime) + installation cost / lifetime – ie cost of ownership per year