Conversion Factor

[VincentHo]

I have noticed my recent gas bill is almost doubled than the normal and found out that the conversion factor used to work out for water heating was increased by 40%. Plesae provide comments.

[Natalie-AGL · Accepted solution]

Hi VincentHo, Thank you for getting in touch with us. 

The conversion factor is calculated to determine the average MJ of gas (the amount of energy used) to heat each 10 litres of water used in your building for the billing period. 

There may be a few reasons why your conversion factor is higher than usual.

• The number of people using the system
• The efficiency of the hot water system 
• The temperature settings 
• The condition and insulation of the pipework 
• The distance from the hot water system 

Kind Regards, 

Natalie 

[NormanJessup]

I have the same question, but your response does not make sense to me.

What is measured by my gas meter is the volume of gas consumed, yes?

The factors you list may well impact the amount of energy consumed, and therefore the volume of gas used, but AGL has no visibility of these factors, so how can AGL arbtrarily change this number?  The "conversion factor" appears to be converting something to Mj (i.e energy consumed). So my question is "what is the conversion factor actully converting from?  Is it converting from gas volume?  If so, what are the units used?  My meter readings indicate a consumption of 85 cubic meters which my bill reports as a "Heating Value" of 38.18 followed by a conversion factor of 0.9935 from which a Usage of 3,224 is stated.  I need to know:

  What is the "heating value" and how does it relate to the gas volume?;

  What is the "conversion factor" converting from and to and how is it obtained;

  How is the Usage (3,224 Mj) calculated form the other figures.

From the figures n my bill I cannot see how the Usage of 3,224 Mj has been derived from the metered volume of 85 cubic meters.  There appears to be a lack of transparency here.

[IanB]

I have noted over the last 2 years that the gas conversion factor continually varies month by month.

If the factor is used to determine the average MJ of gas (the amount of energy used) to heat each 10 litres of water used in our building for the billing period, why do ALL the apartments (157) in our building have different conversion factors when we all share the same bank of hot water units and the same pipework?

Further, why is there a conversion factor levied against the general gas supply (stove top as opposed to the hot water)?

[Deepesh_AGL]

Hi IanB, The pressure factor refers to your meter's average temperature, pressure, and elevation. The Heating Value is used to calculate the amount of mega joules (Mj) in natural gas. The Heating Value is impacted by the temperature and pressure at different geographical locations. Bill calculations are made using the Heating Value and pressure factor that is supplied by the local gas distribution company to AGL. Hope this helps. Cheers, Deepesh 

[IanB]

Hi Deepish,

Thank you for your response to my enquiry. 

However, my enquiry was referring to our gas bill's "conversion factor" not "pressure factor" nor "heating value".

We live in a high rise building where all 157 apartments share the same hot water service and piping but in discussion with neighbours, each of the apartments have various "conversion factors" stated on their bills.

No one has an item on their bills called "Pressure Factor" or "Heating Value". If these measures exist, then how are they used to create the item "conversion factor" that appears on our bills and why are they so varied? For example, our last bill had a factor of 0.740067 whereas our next door neighbour had a factor of 0.504120

The conversion factors and the resultant billing appear very contrived and meaningless; possibly bordering on dubious billing practices that may need the attention of the Ombudsman. 

A further explanation would be appreciated prior to my escalation.

Thank you, Ian.