CONTRIBUTED: Counting the cost of fuel

Location can be everything for a hotel owner, with a rural setting helping to attract guests.  However, for many properties, this can mean operating off-grid and outside of the mains gas supply.

In this scenario, owners have typically had the choice between installing an oil-fired central heating system or a liquefied petroleum gas (LPG) system, which can provide gas for both heating and cooking.  However, research indicates that many owners have only limited awareness of the many benefits of the fuel source, in particular, its viability as a safe, secure and long-term fuel option.

Here, Keith Higginson, commercial marketing manager at Calor Gas discusses the issues around heating oil theft, which, according to the latest NFU Mutual rural crime survey is the third most commonly targeted item for theft and explains how LPG can offer a secure, viable alternative as it is virtually unheard of for the fuel to be stolen from a premises.

The issue of fuel theft

In remote, rural areas, the issue of fuel security is of prime concern, especially when there may be no other source of fuel available at the premises and the business depends on a reliable supply for both heating and cooking.

Oil theft becomes a huge inconvenience for the owner of the premises, as he/she may be without his/her fuel supply for a period of time until the oil can be replenished.  It can also be costly as in some circumstances the tank may need to repaired or replaced due to damage to the oil storage infrastructure.

Threat of pollution

With the issue of fuel theft there also comes the increased likelihood of oil spillages.  These do not just carry a financial penalty in terms of the cost of replacing the lost fuel, but also the inconvenience of dealing with any oil spill and associated environmental contamination.

OFTEC recommends that companies take out specific insurance to cover these potential issues, with a policy that covers the cost of replacing the lost oil as well as the costs of cleaning up any oil spills on the property. Additionally, it recommends a high enough liability limit to cover the owner should neighbouring land and/or boreholes be affected.

To add to this, the UK Environment Agency claims that, on average, an oil spill costs a typical business around £30,000 in fines, clean up charges and losses. There have been incidents where fines have exceeded a million pounds, which, while they may not be on a scale that is relevant to the average hotel premises, serve to highlight the serious nature with which an oil spill may be dealt with by the relevant authorities.

In contrast, LPG in its liquid or gaseous forms is carbon neutral and poses no ground or water pollution hazards.  It also burns cleanly with virtually no soot, cannot mix with water and is heavier than air, so if there is a leak it will sink to the ground or rest on top of water until it evaporates.

It is a greener option too, offering off-mains rural businesses the lowest carbon emissions of all fossil fuels with 11.7% less CO₂ per kWh than heating oil.

Therefore, when it comes to replacing a heating system, hotel owners shouldn’t just take the easy option and replace like for like. The decision to replace the boiler can affect the running costs of a business for the next 15 to 20 years, so it pays to step back and examine the facts between the different fuels available.