Network Scale
Connected homes (EPC units) anchor + residential
units
Avg annual heat demand per unit MWh/yr
MWh/unit
Network loss factor % of generated heat lost
%
Revenue (HSA)
Heat unit rate charged to customer
p/kWh
Annual standing charge per connected unit
£/yr
Revenue escalation annual RPI-linked
% p.a.
Operating Costs
Electricity input cost HP electricity purchase
p/kWh
Heat pump COP coefficient of performance
ratio
O&M cost annual network maintenance
£/conn/yr
Opex escalation
% p.a.
Capital & Returns
Initial capex total network build cost
£k
Maintenance capex annual lifecycle reinvestment
£k/yr
WACC weighted avg cost of capital
%
HSA contract term years modelled
years
Terminal value multiple × final year EBITDA
×
Yr 1 Revenue
—
Yr 1 Elec Cost
—
Heat gen. req.
—
EV / conn.
—
Annual Cashflow Summary (£k)
| Year | Revenue | Elec Cost | O&M | EBITDA | Maint. Capex | FCF | Disc. FCF | Cum. DCF |
|---|
NPV Sensitivity — WACC vs Heat Rate (£k)
Key assumptions: Revenue = (heat demand × unit rate) + standing charge. Heat generation required = demand ÷ (1 − loss factor). Electricity input = heat generated ÷ COP. All costs and revenues escalate annually from Year 1. FCF = EBITDA − maintenance capex. Terminal value = final year EBITDA × multiple, discounted at WACC. Tax and leverage not modelled in core version.