integrated energy systems
Description and Analysis of
Inspection/Maintenance Programs
for OM-Fired Heating Systems
in Switzerland and West Germany
Robert W. Madler, M.S., MBA
303 Monmouth Ave.
Durham, NC 27701
Werner R. Martin, M.S.
Environmental Engineer
Integrated Energy Systems, Inc.
307 N. Columbia Street
Chapel Hill, NC 2J5'\k
3O1 North Columbia Street • Chapel Hill, North Carolina 27514 • (919)942-2OO7
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DESCRIPTION AND ANALYSIS OF
INSPECTION/MAINTENANCE PROGRAMS
FOR OIL FIRED CENTRAL HEATING SYSTEMS
IN SWITZERLAND AND WEST GERMANY
July 1981
Prepared by
Robert W. Madler
303 Monmouth Ave.
Durham, N.C. 27701
and
Werner Martin
Integrated Energy Systems, Inc.
307 N. Columbia St.
Chapel Hill , N.C. 275H
Order No. 1D2923NASX
Project Officer: Robert E. Hall
Combustion Research Branch
Industrial Environmental Research Laboratory
Research Triangle Park, N.C. 27711
Prepared for:
U.S.ENVIRONMENTAL PROTECTION AGENCY
RESEARCH TRIANGLE PARK, N.C. 277H
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TABLE OF CONTENTS
INTRODUCTION AND SUMMARY 1
1. Space Heating in West Germany and Switzerland 2
2. Historical Development of Inspection Programs 4
3. Design and Organization of Inspection Programs 5
4. Results of Inspection Programs 9
4.1 Impact on Air Quality 9
4.2 Improvement of Efficiency 14
5. Cost Benefit Analysis 15
5.1 Modeling Procedures 15
5.2 Cost Benefits in Europe 16
5.3 Concept of Marginal Values 18
6. Discussion of Results 25
7- Acknowledgements 27
Appendix A
Summary of Legal Situation in West Germany and Switzerland
Appendix B
Abstracts of Most Relevant Publications Used in the Report
List of Figures
Figure 1 Size Distribution of Oil Heating Installations
in Switzerland, 1978 3
Figure 2 Flow Chart for Inspection/Maintenance Programs 8
Figure 3 Results of Inspection Programs in Zurich, Basel,
and West Germany as a Whole 10
Figure 4 Marginal Costs and Benefits in Relationship to
Installations in Non-Compliance in Europe 17
Figures 5~9 Estimated Marginal Costs and Benefits in Relationship
of Percentage Installations in Non-Compliance for the
U.S. (1000 gal/yr through 5000 gal/yr) 22-24
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List of Tables
Table I Information on Energy Use in the United States,
West Germany and Switzerland in Gallons of Oil
Equivalents 2
Table II Efficiency Standards in Germany and Switzerland 6
Table III Unqualified Factors Influencing the Performance
of Burners 12
Table IV Unqualified Factors Influencing the Performance
of Boilers 13
Table V Efficiency Distribution of 3000 Oil Heaters 1A
Table VI Violations of Standards of Equilibrium for 1000
Installations 15
Table VII Costs and Benefits for 1000 Installations as a
Function of Inspection Capacity (No. of Annual
Inspections) 16
Table VIM Numerical Values Used for the Calculations of Costs
and Benefits of Inspection/Maintenance Programs
in the U.S 19
Table IX Relationship Between Selected Average Consumption,
Number of Installations and Net Benefits per
Improved Installation 20
Table X Total Benefits for the U.S. for Different Consumptions
per Installation 21
Table XI Estimated S0« and Particulate Matter Emission Reduction
for the U.S. (1978) 26
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INTRODUCTION AND SUMMARY
Energy and environmental goals very often create serious conflicts
in our modern society. Recently much effort has been devoted to resolv-
ing some of these problems. It is especially important to point out
areas where steps toward energy and environmental goals can be taken
jointly. One such area is energy conservation. This paper focuses on
inspection/maintenance programs for residential/commercial heating with
oil, an activity which results in simultaneous benefits to energy effi-
ciency and environmental protection. The information presented in the
paper about inspection/maintenance programs in West Germany and Switzerland
should make it possible to evaluate the potential benefits of such pro-
grams in the U.S.
The paper begins with a comparision of U.S. and European energy use
and outlines the historic development of oil heating inspection/mainten-
ance programs in Europe. The design and organization of such programs
are explained and statistics which were gathered since the introduction of
the programs are presented. A cost benefit analysis for the programs in
West Germany and Switzerland is presented and an estimate for the U.S.
is made.
Between one quarter and one half billion dollars could be saved annu-
ally by implementing an oil heating inspection/maintenance program in the
U.S. The net benefit would go to the oil consumer. The S0_ emission for
residential and commercial oil heating could be reduced by 2.5%, total
suspended particulates by 20%.
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1. Space Heating in West Germany and Switzerland
Oil is the main source for space heating in both West Germany and
Switzerland, providing two-thirds of the total space heating energy. Nat-
ural gas, electricity, coal, and wood share the remaining percentage. So-
lar energy, other than direct gain through windows and indirect gain through
heat pump systems, still makes only a negligible contribution.
Table I points out some of the differences between the energy use in
West Germany and Switzerland and the U.S. The U.S. has a high percentage
of its space heating requirements supplied by natural gas and therefore a
relatively low contribution is made by oil. The differences in total
energy consumption per capita can be explained by two factors. The U.S.
and West Germany have a much higher production of energy intensive products
than does Switzerland. Also, the U.S. has a very high per capita consump-
tion of energy for transportation, mainly due to longer commuting distances,
sprawl development, and fewer mass transit systems.
The technology of oil heating systems is similar to that found in the
U.S. Nozzle-type burners are used. Central heating boilers are the main
type of heat exchangers because hydronic heating systems are prevalent.
UnHJce in the U.S., furnaces are not common in space heating applications.
Figure 1 represents the equipment size distribution in Switzerland.
The large portion of small equipment becomes apparent. The median size
burner has a capacity of 1.7 gal/hr.6 In Switzerland such an installation
would be in operation during 1800 hours of the 180 day average heating
period, consuming an average of 3000 gallons of oil. Unfortunately, such
information is not available for West Germany.
In Swi tzerland the average sulphur.content in heating oil was 0.36%
(average between 1977 and 1979)- In West Germany the value was around Q.k%.
Table 1. Information on Energy Use in the United States, West Germany,
and Switzerland in Gallons of Oil Equivalent.
Country
Per Capita Total
Energy Consumption
(calc. in gallons
of oil)
Per Capita Total
Energy Consumption
for Space Heating
(calc. in gallons of oi 1)
Percentage of
Space Heating
Energy Consumption
Provided by Oi 1
United States
Switzerland
West Germany
19001
552 1
3802
2803
258^
335
703
60"
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% Installations
44
33
15
5
2
Size distribution
Switzerland
1.7 2.8
8.4
28
Capacity gal/hr
Figure 1. Size Distribution fo Oil Heating Installations in Switzerland, 1978.
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2. Historical Development of Inspection Programs
With a sharp increase in oil consumption for heating purposes in the
decade from 1950 to I960 the public became aware of air pollution emitted
by oil heating. Along with the increased population density in urban areas
(more than 200,000 inhabitants/square mile) came an increase in public
awareness of the amount of physical air pollution by odors and soot emitted
from heating chimneys. When problems arise, Europeans typically assign the
responsibility for solving them to their local or regional governments.
In the case of air pollution, complaints emerged and were directed to the
local Public Health Departments. Unfortunately, nobody kept a record of
the number of complaints two decades ago. Today, the treatment of
public complaints is a widely recognized managing tool for air pollution
control.7 We can therefore only guess how many complaints were necessary
to trigger action. The Public Health Department of the City of Zurich
(Switzerland) decided in 196A to introduce an inspection program for resi-
dential oil heating installations. Although simple in design and equip-
ment, the inspections proved to be effective. The idea of governmental
inspections for oil heaters spread rapidly to many other cities in
Switzerland and Germany, and is now also well accepted in rural areas in
the two countries. Under fire protection regulations the maintenance of
heating equipment has been regulated since the last century. With the new
oil heating inspection, air pollution control and later energy conserva-
tion have become the new focal points.
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3- Design and Organization of Inspection Programs
3.1 Technical Equipment for Inspections
At the beginning, the inspectors had only a Bacharach smoke pump for
checking the smoke level. The inspectors were advised to watch for a yel-
low color on the smoke-filter papers. This color indicates traces of par-
tially burnt or unburnt oil. No information was collected about the odors
emitted.
Today, the equipment has become more sophisticated. The Bacharach
pump was replaced by a powered sampling instrument. The filter paper has
grown in exposure area, and the volume of air pumped through has increased
proportionally. Besides reducing sampling errors with more precise samp-
ling, the larger filter paper also allows for a simple chromatographic
procedure for testing oil traces. A drop of a solvent (alcohol, xylol)
placed in the middle of the paper flushes any traces to. the outside rim,
where they are concentrated and easily detectable by a yellowish color.
In addition to this equipment for air pollution sampling, inspectors
today check combustion efficiency as well. This is usually done by measur-
ing carbon dioxide and stack temperature to determine energy loss through
the stack.
3.2 Standards
Air Pollution: In Switzerland a smoke level of two or less on the
Bacharach scale is mandatory?'1^ smoke level of three or less is mandatory
in West Germany. No visible traces of oil on the filter paper are allowed.
If an installation fails to meet either standard, the owner is legally
obligated to have the installation serviced by a licensed service techni-
cian. If the inspection following this service still reveals non-compli-
ance, the installation has to undergo a fundamental improvement, usually
consisting of replacement of the burner, or the boiler; sometimes even a
new stack has to be built to deliver sufficient draft for proper function-
ing of the installation.
Combustion Efficiency: West Germany10 has legal efficiency standards.
In Switzerland federal efficiency standards11 are set as guidelines. Several
state and local governments have already declared these standards mandatory.
The standards expressed in percentage efficiency are summarized in Table II.
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Table II. Efficiency Standards in Germany and Switzerland.
Capacity
in gal/hr
0 - 1.7
1.7 - 8.4
> 8.4
0-0.06
0.7 - 1.4
1.4 - 3.3
> 3.3
Country
Swi tzerland
Western
Germany
instal lation
1978 or earlier
84
86
88
82
83
84
86
date, efficiency in %
1979-1982
87
88
89
84
85
86
87
after 1982
87
88
89
86
87
88
89
3-3 Organization of the Inspection Programs
Whereas a federal law regulates the organization of oil heating in-
spection in West Germany, in Switzerland the state and local governments
are responsible for introducing and enforcing these requirements. There
are two fundamentally different ways of executing the inspections:
A) inspection by government employees, or
B) inspection by private enterprise
A) The idea of government employees having the right to inspect some-
thing in a private home may be strange to Americans. In European countries
many examples of government intrusion in spheres considered to be private
in the U.S. can be found. The public does not reject such intrusions in the
case of oil heating inspections. In fact, in about half of the existing
inspection programs in Switzerland, the task is performed by government
employees. There are two advantages when the government conducts
the inspections. The government is neutral and does not favor any brand
names or manufacturing companies. There are three different charge sys-
tems in use. No charge at all, charge of full cost to home owners, and
charge only in case of non-compliance. Second, where the government is
responsible for inspections, detailed statistics are usually available
about the benefits and therefore the success of the program.
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B) Inspections are conducted by private persons in Germany. The local
chimney sweeps are in charge of inspecting the heaters when they do their
conventional job. In both Germany and Switzerland, homeowners are required
to have their boilers, furnaces, and chimneys cleaned at least once a year
by a licensed chimney sweep. Combining the inspection with the cleaning
task has obvious economic synergies. The legal assignment of inspections
to chimney sweeps depends, of course, on the willingness of the profession-
als, who are usually organized in guilds or trade associations, to perform
the task.
The flow chart presented in Figure 2 shows the general organization
of inspection/maintenance programs in Switzerland and West Germany. Both
governmental and private inspectors are required to attend an instruction
program lasting from one to several weeks. In addition, relevant instruc-
tional programs are required when new equipment or new techniques are
introduced.
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FIGURE 2.
FLOW CHART FOR INSPECTION/MAINTENANCE PROGRAMS
INPUTS
ACTIVITIES
DECISIONS
OUTCOMES
n
MANDATE
NEW IN-
STALLATIONS
COMPLAINTS
DISCONTINUED
INSTALLATIONS
LZ-IT
INSPECTION
DATA
PROCESSING
INSPECTION
SCHEDULE
MAINTENANCE
SERVICE
INSTALLATION I
COMPLIANCE WITH
STANDARDS ??
FUEL SAVINGS*
AIR POLLUTION
REDUCTION
PERFORMANCE
REPORT
I
Explanations to Flow Chart:
MANDATE: legal assignement to inspect oil fired heatings,
usually the law requires all installations to
be inspected in a given period, eg 1,2, or 3 years
DATA done either electronically or by hand. New and
PROCESSING: discontinued installations have to be recorded.
Record of all activities and the decision result
is kept. Delivers the inspection schedule, which
installations to inspect when. A performance eva-
luation is reported end of each period.
INSPECTION Assigns inspectors to installations to inspect
SCHEDULE: in a time period. Many programs have daily or
weekly assignements.
INSPECTION: Activity of checking, if the installations
complies with standards.
COMPLAINT: Information from the Public about odors or
visible soot, initiate an out of schedule inspec-
tion with priority
MAINTENANCE Activity required by inspector, if checked ins-
SERVICE: tallation is found noncomplying. Some programs
require a second inspection after servicing the
installation
COMPLIANCE done by the inspector immediately, according to
DECISION: the standards given to him
PERFORMANCE allows in its most basic form to evaluate the
REPORT: number of noncomplying installations found in
each period. Some programs report the percentage
of noncomplying installations related to additi-
onal characteristics, like age, capacity, brand-
names etc.
8
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4. Results of Inspection Programs
4.1 Impact on Air Quality
When inspection/maintenance programs were first introduced, the rate
of rejections varied between kQ and 60 percent. These high percentage
figures were mainly due to a lack of correct burner adjustments. Techni-
cians installing the equipment were not properly trained and homeowners
were not aware of the implications of an incorrectly adjusted burner in
terms of energy use and air pollution.
During the first few years of the inspection programs, a sharp de-
crease of violations occured^^Flgure 3 summarizes the results achieved
over five to eight inspection cycles (1 year in Basel and West Germany,
2 years in Zurich). The violation percentage reaches an equilibrium level
after several years. In the case of annual inspections the equilibrium
level is about 3%. With biannual inspections (Zurich) the equilibrium
level appears to be higher. A theoretical model based on a two-level
Markov process supports this hypothesis.17 The model predicts an equilibri-
um level of 3% violations for an annual inspection cycle, and 17% for a
biannual inspection program.
Data gathered from inspection and maintenance programs indicates
that there is an interdependence between the violation rate and equipment
size and the violation rate and equipment age3?'13'1'* There was a much lower
violation rate for larger equipment. This is attributed primarily to better
maintenance and operation of large equipment and the resulting lower emis-
sions of particulates and unburnt hydrocarbons.
As for age as an independent variable, the results are split into age
of burner and age of boiler. Poor performance of newer burners is explained
mostly by adjustment problems in the first months of operation while older
burners show a steadily decreasing performance with increasing age. Also
older boilers were designed mostly for coal as fuel and had square shaped
flame chambers. Newer boilers are designed for oil burners and have a
tube-shaped flame chamber, allowing an even thermal density function around
the flame and higher efficiency.
9 '
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Figure 3.
Results of Inspection Programs In Zurich, Basel, and West Germany as a whole.
Country/City
• W. Germany
* Zurich
Basel
Inspection Frequency
Biannual
Biannual
Annual
678
Inspection cycles
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The total benefit In air pollution reduction for the city of Zurich15
is estimated to amount to:
1% of total S0_ emissions through improvements in
energy efficiency
60% of total soot emissions through improvements in
25% of total hydrocarbon emissions combustion
Last year, the city of Zurich published a detailed report on the
rate of non-compliance for each major brand of oil-burner and boiler.8
Since some of these brands are marketed in the U.S. as well, the results
are presented in Tables III and IV.
11
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N>
\ Independent
\ Variables
Brand N^
Names \.
Accuniat
Busco
Cue nod
Delco
Diener
Elco
Elektro-Oil
Fag
Flamna
Gilbarco
Hiilg
Monarch
Oertli
Oil-O-Matic
Oil-Therm
Purflam
Ouiet May
Ray
Six Madun
Sun Ray
Swiss Therm
Thermo Mai Ic
number of
instal lations
i
C
94
1077
1184
56
1075
3847
150
535
135
2096
301
82
6308
786
3098
221
119
114
585
131
259
111
Evaluation (non-compliance percentage)
excel lent
) 5 10 1
;I
good
5 20 25 :
— TV&W —
XxXvXv:;
vXv;
v.v.v.
•X-XvX'
satisfactory
0 35 40 '
•I'x'x'x".
XvX-XvXvXvX
!v.v.v.v.v»v.v
:vX$wi#S8
X-ftXv
X'X'X'X1
1
m
:•:•:•:•:•:•:
•X-X-X
v»v«v
,v.v»v.v.ViV. X*XvX
XvXvX;
^^:'x^w::::::w-x
vXvX
'•V.V.V.*
vX
;XvXvX
X
•XvX-
.V//.V.
5 5O%
Unquantified factors
influencing the per-
formance of Burners:
-capaci ty
-design of boiler
combined with burner
-service contract
-model year.
Table III. Independent Variables and Non-Compl i.ance Rates, for
Oil Burners.
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\ Independent
\ Variables
Brand \
Names N.
Ace uma t
Lludorus
Compass
CTC
Uo Dietrich
Hildr-ner
Hoval
Idag
Ideal
Klus
Mini therm
IHeren
Slri'bel
Sulzor
Yijnis
Zcnt
number of
instal lat ions
120
487
216
930
96
100
3543
354
5830
1422
221
155
5760
425
564
2158
C
Evaluation (non-compliance percentage)
excel lent
) 5 10 1
i j
vX*X
good
5 20 25 :
•XvXvX-XvX-
.•.••'•VV.'.V.V.V.V.V.1.1
.V/.*.VtV.V.V.V.V.V/.
CwXvX [
•ivXvXvXv!
MvXvX
XvXvX
sat i sfactory
O 35 40 4
XvXvX;
%^?xWx^x?x wxW #
,v/.v.
x::::::x:
5 50*
Unquantified factors
influencing the per-
formance of Boilers:
-capaci ty
-des ign of boiler
-service contract
-model year.
Table IV. Independent Variables and Non-Compliance Rates for
Oi1-Fi red Boilers.
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k.2 Improvement of Efficiency
After the first oil crisis in 1973, government officials in charge of
the inspection programs started to collect efficiency data. Surprisingly,
a substantial increase in the average efficiency was found1. 4»15»16 A com-
parison of installations violating the air pollution standards and ones
in compliance showed a difference in efficiency of about 6%. Most instal-
lations had a low carbon dioxide concentration in the stack gases, which
may have been the reason for the rather large improvements.
In West Germany, the average improvement was from 77-5% to 83. 1%.13
In Zurich, Switzerland, only a difference of 6% is reported, with no indi-
cation of a base value16 The author instead gives a distribution of the
efficiency of a sample of 3000 inspected installations as shown in Table V:
Table V. Efficiency Distribution of 3000 Oil Heaters.
Efficiency in %
< 80
80 - 85
85 - 90
> 90
Number of Installations
213
563
1767
457
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5. Cost Benefit Analysis
5-1 Modeling Procedures
In order to relate costs and benefits of inspection programs, a mo-
del has to be found which describes the relationship between the inspec-
tion capacity (number of installations inspected per year) and the achiev-
able equilibrium levels of violations after several inspection cycles.
Regression analysis does not prove to be a useful model because it under-
estimates the percentage of violations with increase of inspection cycles.
The capacity is assumed to be the most relevant cost factor. The equili-
brium level depends on the number or percentage of installations working
efficiently after implementation of an inspection program and on approxi-
mately 50% of the installations being in good condition initially.
Such a model was found by applying a simple two-level Markov process
with a transition probability between the two levels*7 The transition pro-
bability is the deterioration or failure rate of oil heaters. It was de-
termined from the data presented in Figure 2 and has a numerical value of
10% per year.
Applying this model, the equilibrium levels of Table VI were calcu-
lated.
\
Table VI. Violations of Standards at Equilibrium for 1000 Installations.
Inspection Capacity,
Installations per year
100
200
300
400
500
600
700
800
900
1000
2000
Time for 1 Full Inspec-
tion Cycle (in years)
10
5
3 1/3
2 1/2
2
1 2/3
1 3/7
1 1/4
1 1/9
1
1/2
Number of Instal la-
tions in Non-Compl iance
500
333
250
200
167
143
125
111
100
91
48
To confirm the results a computer simulation was done.
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5.2 Cost Benefits in Europe
In order to justify the program, the benefits should exceed the cost,
For European inspection programs the costs are approximately $25 per
inspection and $75 per maintenance service. Inspection costs occur to
all installations, whereas maintenance service costs occur only in cases
of non-compliance. The benefits are only quantifiable for the reduced
oil consumption due to maintenance. For the cases where maintenance is
necessary, an average savings of $167 has been observed. Continuing
our example with the 1000 installations from Table IV, the costs and
benefits presented in TableVllcan be generated by applying the model
from 5-1.
Table VII. Costs and Benefits for 1000 Installations as a Function of
Inspection Capacity (No. of Annual Inspections).
Inspection
Capacity
200
300
400
500
600
700
800
900
1000
2000
Costs of
Inspections
In $
5,000
7,500
10,000
12,500
15,000
17,500
20,000
22,500
25,000
50,000
Number of
Instal lations
Improved
167
250
300
333
357
375
389
400
409
452
Savings after
Maintenance
Costs
15,500
23,500
28,000
31,000
33,000
34,500
36,000
37,000
38,000
42,000
Net Profit
In $
10,500
15,500
18,000
18,500
18,000
17,000
16,000
14,500
13,000
8,000
Although our example takes into account only 1000 installations of
average capacity, the benefits are substantial and reach a maximum at a
biannual cycle. The benefit of air pollution reduction is not accounted
for. Since the program produces a net benefit from fuel savings alone,
air pollution benefits do not have to be expressed in monetary terms.
Before any potential benefits in the U.S. can be estimated, the results
of the European inspection programs have to be converted to marginal values.
This conversion is shown in Figure 4.
16
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MC
MC Marginal Cost
MB Marginal Benefits
$[Thousands!
-5
2.5
.93
50
40
30
20
10
O/* Installations in Noncompl lance
at Equillbrlum
Figure A. Marginal Costs and Benefits in Relationship to Installations
in Non-Compliance in Europe. Values are based on 1000
Installations.
17
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5.3 Concept of Marginal Values
In economics, these names are given for the first derivatives of cost
or benefit functions. The literal meaning may be best described as: in-
crease or decrease in benefit or cost per unit. In our case the marginal
benefit is the benefit gained by improving one additional percent of all
installations and the marginal costs are the costs to make those improve-
ments.
The economically desirable profit maximization occurs where marginal
benefits equal marginal costs. In other words, if the costs for improving
one additional installation are greater than the benefit gained by this
improvement, this improvement reduces the total profit. If costs for
improving one additional installation are lower than the savings, the
overall profits still increase. In the case where the gain and the cost
for improving one additional unit are equal, we are at an optimum.
5.^ Estimation of Cost-Benefit Analysis of a U.S. Inspection
Program
To transfer our findings to the U.S. environment, we have to assume
similar circumstances as those which occur in Europe. This relates in
particular to:
- failure rate of heating equipment
- percentage of inefficiently operating and polluting installations
before the start of inspection programs (European result: 50%
of all installations are below the standards)
- inspections and service methods are similar and produce identical
results
In order to estimate costs and benefits of a U.S. inspection/mainten-
ance program, the numerical values in Table VIII are used. The only value
taken from European experience is the 6% overall fuel savings resulting
from such a program. Only a representative survey can prove whether this
figure is correct for the U.S. circumstances.
18
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Table Vfll. Numerical Values Used for the Calculations of Costs and Benefits
of Inspection /Maintenance Programs in the U.S.
Parameter
Values
Source
fuel oil price
U.S. fuel oil consumption
for residential and commer-
cial space heating
increase in efficiency per
improved installation =
fuel savings
SO- emissions from residen-
tial and commercial oil
heating
ditto, particulate matter
emissions from residential
amd commercial oil heating
1.21 $/gal
2.76X1010gal/yr
1160X103 tons/yr
80X103 tons/yr
market price as of
March 1981
ref. 2, 5
ref. 13,
ref. 18
ref. 18
Unfortunately, no information about average oil consumption per in-
stallation or about the number of installations in the U.S. was available.
Knowledge of either one of these parameters would make it possible to
calculate the other. The total annual oil consumption for residential and
commercial heating purposes is known.
To by-pass this lack of information, a sensitivity analysis approach
was chosen. The oil consumption was varied between 1000 and 5000 gal/yr.
These values should cover the true, unknown average consumption. We
know from Switzerland that the average consumption is 3000 gal/yr. Fur-
thermore, this variation includes the lower end of the break even point,
where costs and benefits are equal.
To estimate the potential benefits of inspection programs in the U.S.,
we have to assume inspection costs of approximately $20, and maintenance
service costs of $60. The inspection cost is an estimate based on European
experiences. It is based on the number of inspections per inspector, about
1500 to 2000 per year, and the U.S. wage level including overhead costs.
The $60 value for maintenance takes into account the longer working time
compared to inspections and replacement of minor parts, like oil filters,
nozzles, etc. Service crews in North Carolina actually charge $60 per
maintenance job.
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To calculate the benefits we use the 6% savings achieved per average
installation and the current market price for fuel oil. The net benefit
per improved installation is the difference between the savings and the
required maintenance service to achieve those savings. Table JX shows
the results for the five different average consumption rates chosen.
Table IX. Relationship Between Selected Average Consumption, Number of
Installation and Net Benefits per Improved Installation.
average consumption per
year and instal lation,gal
1000
2000
3000
kOQQ
5000
net benefit per year
and installation^
13
85
158
230
303
number of installations
in the U.S.
27.6 x io6
13-8 X IO6
9.2 X IO6
6.9 X IO6
5-5 X IO5
The calculation of the number of installations is based on the total
oil consumption for residential and commercial space heating of 2.76 X
IO10 gallon per year as mentioned in Table VI. This amount divided
through the average consumption results in the numbers given in Table VX.
For calculating the total benefits for the U.S., achieved by inspec-
tion programs, we first determined the optimal inspection schedules from
Figures .5. through 9. The percentage taken at the intersection of mar-
ginal costs and marginal benefits is the equilibrium non-compliance rate
for the optimal inspection schedule in each case. The total benefits are
now calculated by multiplication of the number of, installations improved
through the program (non-compliance rate from figures versus non-compli-
ance rate initially equal to 50%) with the net benefits from Table IX..
The costs for the necessary number of inspections are subtracted. The
relationship between the equilibrium non-compliance rates and the required
number of inspections are developed from Table IV.
Depending on the average consumption per installation, total net bene-
fits can be derived (Table .X)i
20
-------
Table X. . Total Net Benefits for the U.S. for Different Consumptions
per Installation.
average consumption
net total benefit in $ millions
1000 gal/yr
2000 gal/yr
3000 gal/yr
4000 gal/yr
5000 gal/yr
none*
252
417
512
573
*s1ight loss calculated, no numerical value possible because it is out
of model ing range
21
-------
HC Marginal Cost
MB Marginal Benefits
Assumption: 1,000 gal/yr average
oil consumption per
installation
$ [Millions)
•60
•50
40
30
•20
Installations in Noncompllance
at Equilibrium
FIGURE 5.
Estimated^marginal costs and benefits in relationship of percentage of
installations in non-compliance for the U.S.
HC Marginal Cost
MB Marginal Benefits
Assumption: 2,000 gal/yr average
oil consumption per
Installation
"so
40
rMC
MB
$ (Millions)
"60
-SO
-4O
•30
•20
•1O
0% Installations In Noncomp 11ance
at Equilibrium
FIGURE 6.
Estimated marginal costs and benefits in relationship of percentage of
installations in non-compliance for the U.S.
22
-------
50
HC Marginal Cost
MB Marginal Benefits
Assumption: 3,000 gal/yr average
oil consumption per
Installation
40
30
20
1O
$ (Millions)
•60
5O
40
3O
MB
20
10
Q'/l Installations In Noncompl lance
at EqulIibrlum
FIGURE 7.
Estimated marginal costs and benefits in relationship of percentage of
installations in non-compliance for the U.S.
HC Marginal Cost
MB Marginal Benefits
Assumption: 4,000 gal/yr average
oi 1 consumption per
installation
$ (Millions)
MC /
/MB
^
•6O
•50
-4O
"30
"20
"10
50
40
3O
20
1O
O% Installations in Noncompl lance
at Equilibrium
FIGURE 8.
Estimated marginal costs and benefits in relationship of percentage of
installations in non-compliance for the U.S.
23
-------
Si Millions I
HC Marginal Cost
MB Marginal Benefits
Assumption: 5,000 gal/yr average
oil consumption per
Installation
MC
/MB
^
•6O
"50
-40
-30
-2O
-10
50
4O
30
20
10
0%
Installations In Noncomp11ance
at Equilibrium
FIGURE 9-
Estimated marginal costs and benefits in relationship of percentage of
installations in non-compliance for the U.S.
-------
6. Discussion of Results
Inspection programs for oil-fired central heaters are (under a wide
range of assumptions) economically profitable. In the calculations made
for Figures 5 through 9 , the average consumption per installation was
varied in a ratio of 1:5. For the lowest consumption rate a net loss
occured. The calculation of break even point consumption rate is inter-
esting. The break even point criterion is the following:
Net benefit (per installation) = inspection cost (per installation)
Assuming inspection costs of $20, we calculate the consumption rate for
which the new benefit equals $20. The so called break even point consump-
tion rate turns out to be 1333 gal/yr. This result can be interpreted
as follows: An inspection program should only be aimed at installations
with annual consumption rates greater than 1333 gal/yr. To cover smaller
installations will not be profitable to date.
The calculation of the air pollution reduction follows considerations
similar to the ones for the benefit calculations. Because of the more
qualitative nature of the air pollution information known, we make some
simplifications. We assume that overall only kQ% of all installations
will experience a pollution emission reduction after implementation of
inspection programs. These kO% are derived from equilibrium levels in
Figures 5 through 9. These improved installations emit 6% less sulphur
dioxide, exactly the same reduction as oil consumption.
The reduction of the emissions of particulate matter is based on
the following European experiences. Installations in non-compliance
have smoke level averages of about 3; through maintenance this value is
improved to smoke levels of 1 or 2, averaging 1.5. This corresponds to
a 50% particulate matter emission reduction per improved installation.13
The total reductions are calculated by multiplication of the fraction of
improved installations and improvement per installation (see Table X.t).
There is no linear relationship between smoke number and particulate
matter mass. For every source the relationship between the two is dif-
ferent because smoke numbers are an optical indicator dependent on par-
ticulate size distribution, whereas mass is not influenced by particle
sizes.
25
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Table XI.
Estimated SCL and Particulate Matter Emission Reduction for
the U.S. (1978)
Emission Reduction from
Residential, Commercial & Insti-
tutional Oil Users, total U.S.
tons
SO,
reduction in
of all installations)
Particulate Matte-r
($0% reduction in
of all installations)
2.k
20.0
27.8AO
16,000
For the reduction of hydrocarbons, no numerical value can be given.
It would be interesting to know more about it, but the inspection method
used in Europe is only qualitative.
Results of field investigations done in the U.S. have to be availa-
ble to either confirm of dispute the assumptions made here. Once a good
data base for the efficiency improvements and the emission reductions is
established, an inspection/maintenance program design effort would be
easily justified. The program design needs to take into account the
technical skills of the professional group executing the program and
probably some additional incentives besides the fuel cost savings.
Maintenance of energy systems in general has been neglected in the past.
It has been only recently that maintenance has again been recognized as
a cost saving activity. Besides prolonging the lifetime of the equipment
and lowering breakdown rates, fuel cost savings are beginning to be
viewed as a benefit of increased maintenance efforts. The timing seems
good to get inspection/maintenance programs designed, tested, and accepted
by the public if the overall benefits to the oil user can be better docu-
mented.
26
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7- Acknowledgements
The authors would like to thank Robert E. Hall, Industrial Environ-
mental Research Laboratory, USEPA, for his support and encouragement for
the ongoing analysis of inspection/maintenance programs in West Germany
and Switzerland. Also highly appreciated are the additional detailed
documentations received from Walter Hess, health inspector of Zurich and
from Mr. Gliwa at the Landesanstalt fur Immissionsschutz, Essen.
27
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REFERENCES
1. United Nations, "World Statistics in Brief", 3rd edition, N.Y., 1978.
2. National Geographic Society, "Energy, a Special Report on the Public
Interest", Washington, DC, February 1981.
3. Federal Dept. of Transportation and Energy, "Energy Consumption of
Switzerland 1979", Berne 1980.
4. U. Roth, Th. Gisberg, W. Martin, E. Ledergerber, "Influences on the
Settlement and Land-Use by Developments in the Energy Sector", Ministry
for Land-Use, Housing , and City Planning, Bonn-Bad Godesberg 1976.
5. Energy and Environmental Analysis, Inc., "End Use Energy Consumption
Data Base:, Dept. of Energy, Washington, DC, June 1978.
6. Swiss Association of Heating Equipment Manufacturers, "Service Statistic
as of 1980", internal report, June 1980.
7. R. Madler, "Public Complaints About Air Pollution as an Instrument of a
Control Policy", Z. fur Gesundheitstechnik, November 1975, February 1976.
8. W. Hess et al., "Oil Heating Inspection in the City of Zurich", Schw.
Blaetter fur Heizung und Lueftung 1979,
9. Swiss Federal Government, ':'Proposal for an Environmental Protection Act",
Berne, Switzerland, October 31, 1979.
10. Federal Government of Western Germany, "First Ordinance for Execution of
the Federal Air Pollution Control Act", August 28, 1974.
11. Swiss Federal Dept. of Transportation and Energy, "Requirements for In-
spection of Combustion Efficiency of Heating Installations", preprint of
draft proposal, January 1980.
12. Dept. of Air Pollution Control of the State of Basel, "Oil Heating In-
spection in Basel", internal report, February 1980.
13 .P. Davids, "Emission Reduction and Fuel Savings for Oil Heating Installa-
tion", Z. Hyg. Gesundheltstechnik, Bauphysik 96(2): 33, 1975.
14. Dept. of Public Health of the City of Zurich, "Summary of the results of
Oil Heating Inspections",1976 to 1978", internal report, July 1979-
15. W. Hess, "Millions Wasted Inefficiently", Schw. Handelszeitung Nr. 3,
January 20, 1977-
16. W. Hess, "First Results of Combustion Efficiency Inspection in the City
of Zurich", unpublished paper, 1980.
28
-------
17- R. Madler, "Cost-Benefit Analysis of Governmental Oil-Heating Inspection
Programs Versus Porposal for Required Service and Maintenance by Private
Enterprises", consulting report, July 1980.
18. USEPS, Deputy Assistant Administrator's Report on Ambient Monitoring
Activities, Air Portion, U.S. Environmental Protection Agency,
Washington, DC, 1980.
29
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SUMMARY OF LEGAL SITUATION
West Germany
In 197^ A Federal Law for Environmental Protection was enacted
("Bundes-lmmissionsschutzgesetz). In a first ordinance to that law, also
in 197^*, standards for heating equipment were set and its maintenance was
regulated. The following extracts deal with oil-fired heating systems:
Standards^
smoke level (Bacharach): 3 or better
C02 % for existing installations: 1% or higher
CO % for new installations: 10% or higher
Hydrocarbons: not detectable with prescribed
method
Inspections:
- annually through chimney sweeps
- chimney sweeps report noncomplinances with regulating agency
Instrumentation for Inspection:
- description which corresponds to the Bacharach pump or other mechan-
ical pumps
- smoke level definition - same as US Bacharach scale
- Forms prescribed
- Hydrocarbon test - on filter paper of smoke pump, chromatography
concentrated towards rim, visual detection
through yellowish color
Enforcement:
Fines, no limits reported
Switzerland
In the near future, Switzerland will enact a Federal Environmental
Protection Law. In addition to the law, many ordinances have already
been prepared and published as guidelines. Many state and communal govern-
ments have declared some of the guidelines mandatory and enforce them.
Proposed Environmental Protection Law:
- authority to require periodic inspection for oil-fired heating sys-
tems rests with the cabinet
- limits will be set on the sulfur content of fuel oils
A-1
-------
Guide!ines:
- Combustion efficiency of heating installations is discussed in k.2,
Table II.
- Bacharach smoke level standards for comparision are defined as in
ASTM 2156-65 plus additional requirements for printing, screen
resolution, glossiness, whiteness of paper, resulting in a much
higher quali ty.
- air quality standards SO-,
annual average of 1/2 h values - 60 micrograms/m3
95% percent!le of 1/2 h values - 300 micrograms/m3
- construction and design of chimneys and stacks;
detailed mathematical treatment for stacks of heating systems above
approximately 80 gal/yr capacity
- general rules and minimum dimensions for chimneys of smaller instal-
lations
- inspections of oil-fired heating installations
Enforcement in Switzerland
Proposed Environmental Protection Law, general formulation (not speci-
fied for the case of noncompliance with oil-heating standards):
if noncompliance is intentional: prison up to 6 months
if noncompliance is through carelessness: fine up to SFr. 20,000
(US $10-12,000)
A-2
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6. Associations of Swiss Manufacturers of Heating Equipment (VSO and KRW):
Economy of Oil-Fired Boilers
These associations discuss the new Swiss guidelines for technical
design of burners and boilers. These guidelines standardize shape and
size of flames of burners in relation to capacity, and shape and size of
combustion chambers of boilers to achieve symmetrically and evenly dis-
tributed energy densities on the heat exchanger surfaces. The associations
welcome these new guidelines.
B-1
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7. R. Madler: Treatment of Public Complaints About Air Pollution as a Task
for Communal Governments, Gesundheitskchnik:, November 1975,
and February 1976.
Some ideas about the relationship between public concern about air
pollution and the official air pollution control policy of governments are
presented. The history of oil heating inspection programs is outlined, and
still today is closely related to those public complaints about air pollu-
tion.
Air pollution emitted by oil heating installations is easily detectable
by the human senses; soot has an optical impact on its environment, hydro-
carbons (from oil heating) are detected as bad odors. Even today, the
City of Zurich receives nearly a thousand complaints annually concerning
3-^*00 heating installations which are emitting excessive hydrocarbons or
soot.
B-2
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8. W. Hess: Oil-Heating Inspection in the City of Zurich. Summarized Results^
of the Heating Periods, "Schweizeirsche Blatter fur Heizung und
Lufhing", 1979-
This is probably the most extensive publication about inspection pro-
grams. In great detail, the influences of the following characteristics
on air pollutant emissions are investigated:
- age of oil-burner and boiler
- revolutions of burner fan motors
- material of boilers (sheet metal versus cast Iron)
- burner capacity
- periodic maintenance by manufacturer (subscription)
- market share
The information in this publication is discussed in detail in the
text.
B-3
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12. Air Pollution Agency of the State of Basel-Land:
Oil Heating Inspections, Results of the Heating Period 1978/79,
internal report, sent to related professionals.
The inspection program in Basel-Land is similar to the Zurich program.
The major difference is the inspection period: 1 year in Basel-Land, com-
pared to two years in Zurich. As explained in part 5.1 of the text, this
difference mzy explain various findings of the relative inspection programs.
The development of the percentage of installations exceeding standards is
presented in Figure 2.
Similar to the publications of W. Hess8'15'16 , a few findings
about influencing factors are reported:
- capacity of installation
- periodic maintenance by manufacturer (subscription)
The results obtained from this inspection program are statistically
not significantly different from the Zurich results.
B-k
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13. P- Davids: Emissions Reduction and Fuel Savings for Oil-Fired Heating
Systems, "Zeitschrift fur Hygiene, Gesundheitsechnik und
Bauphysik", February 1975-
In addition to the previously discussed publications from P. Davids
are results about the interdependence of air pollution emissions and age >
of the installations. Installations built in 1955 have an average smoke
level of 2.1, installations built in 1973 have a smoke level of only 1.7-
for a reduction from sjnoke no. 3 to no. 3.5, a reduction of suspended par-
ticulate matter of more than 50% can be assumed. (See figure below).
The newly reported emissions (specific numbers, averages of an unknown
sample) of gaseous air pollutants are:
CO: 1.5 g/kg oil (relation to CO- % not reported)
NO : 2.1 g/kg oil (no relation to CO, %)
RZ RA
[_mg_]
5 100 -
4 80 -
3 60 -
2 40
1 20
0 0
^-_^
1 . | . 1 • 1 '
? 10 12 14 16 CO;
Interdependence of C02 with Smoke Numbers (RZ)
and TSP Emissions (RA).
B-5
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15. W. Hess: Millions Uselessly Wasted, "Schweizerische Handelszeitung",
March 1977.
The author summarizes some important effects of oil heating systems
inspections for air pollution and combustion efficiency in Zurich,
Switzerland:
air pollution: S02 - k3 t/yr (\% of total)
Soot - 1.7 t/yr (60% of total)
CxHy - 176 t/yr (approx. 35%)
fuel savings: oil - 10.6 mill liter (25% of total)
These numbers are based on a sample of 17,000 inspections for air
pollution, but only ^50 inspections for fuel savings. However, they are
one of the most precise information sources about the positive effects of
inspection programs.
B-6
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16. W. Hess: First Results of Combustion Efficiency Inspections in the City
of Zurich, unpublished paper, 1980.
The main results are discussed in the text, part 5.2. In addition to
the distribution of combustion efficiencies, the distribution of stack
gas temperatures may be of interest:
temperature range
% of installations °C °F
2
23
45
23
6
2
ge:
<150
150-199
200-249
250-299
300-349
>350
231
<302
302-390
392-480
482-570
572-660
>662
448
(sample size: 3000)
B-7
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R. Hunziker: Surveillance of Economical Operation of Oil Heating Installa-
tions, Dokumentation 16, Swiss Association of Engineers and
Architects
An instrument is described for continuous monitoring of oil heated
boilers. Soot and unburnt hydrocarbons are monitored. The instrument
produces an alarm if any one of these components exceeds the standards.
The author emphasizes the relationship between air pollution emissions
and combustion efficiency. Results from lab tests support the positive
relation between the two. For three different types of burners (not speci-
fied) the following curves were found:
CO Cone.
The alarm monitor allows the installation to maintain a better opera-
ting range and initiates adjustments/repairs when necessary. The author
claims a permanent combustion efficiency of 90-95% for monitored installa-
tions.
B-8
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Annual Report of the Environmental Protection Agency of the City of Berne,
Switzerland, 1979.
In 1978/79 3509 inspections were performed and 15% violations of air
pollution standards were found. The violations increase with the age of
the installations. From previous periods, the following results are
reported:
# of inspections % violations
197V75 W& 32
1975/76 • 35^6 29
1976/77 2328 23
1978/79 3509 15
More than half of these violations are because of hydrocarbons. Sig-
nificant differences between manufacturers are reported:
best brand: 8% violations
worst brand: 57% violations
B-9
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P. Davids: Success of Oil-Heating Inspection in "Nordnein-Westfalen",
(West German State), "Das Schornsteinfegerhandwerk", April 1974.
New results from the heating period 1972/73 are reported. The main
concern in this paper (published after the 1973 oil price increase) is the
possible savings of fuel. Combustion efficiency (average of inspected in-
stallations) improved since 1964/65 from 77.5% to 83.1%. The average capa-
city of oil burners (compared with mode of size distribution reported one
year earlier: 1.1 gal/hr) is approximately 1.7 gal/hr.
Because of the successful implementation of the inspection program,
the legally required chimney cleaning (number of chimney sweeps) was re-
duced (reduction not specified).
The author suggests a further increase to an average combustion effi-
ciency of 88% as an objective for the near future. Additional fuel savings
(Nordheim-Westfalen) would amount to 160 million gallons per year.
B-10
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P- Davids, et. al.: Possibilities for Reduction of Soot and Odors Emitted^
by Oil-Fired Heating Systems by Process Optfmization_
and Mechanical Improvements, "Gesundheits-Ingenieur",
September 1973.
Results of inspections on 38,000 installations in the heating period
71/72 are evaluated. Soot and odor emissions can be reduced to a minimum
level through operation of the installations with C02 concentrations be-
tween 10 and 13%. The improvements compared to taday's situation is con-
siderable. The simultaneous increase in combustion"efficiency reduces
emissions further, though not in the same amount. Efficiency and fuel
conservation is of interest for the owners of the installations.
Different brands of burners and boilers differ significantly in air
pollutant emissions and combustion efficiency. Mechanical improvements
on insufficient designs are feasible. The author supports technical and
emission standards for burners and periodic, maintenance. He expects then
that almost all installations will operate with maximum efficiency and
minimal air pollution.
Numerical results (38,000 installations, West Germany, 1971/72):
installations exceeding emission std: 10%
installations exceeding hydrocarbon emission std.: 3%
minimum of smoke level in function of C0_: smoke level
2 at m C02
average C02 %: 8.5%
most frequent burner capacity (mode of
size distribution): 1.1 gal/hr
B-11
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L. Marci: Possible Savings for Heating Installations and Their Limitations.
"Installation", May 1976.
Construction and design of installations are important for efficiency
i n two ways:
- maximum efficiency under optimal conditions, like test labs, etc.
- transfer of these desirable efficiencies to operations in practice
in the long run with infrequent maintenance and other adverse condi-
tions
The elements affecting efficiency are discussed and evaluated:
- stack gas temperature (low, just above acid condensation temperature)
- combustion air temperature (as high as possible, recirculation of
heated air)
- excess combustion air
- heat radiation losses of boilers and hot water pipes, related to in-
termittent burner operation
- effect of "flue dampers"
The author combines all these considerations in calculating total
annual efficiency of installations. He presents three important recommen-
dations:
- demand for high quality of installations in construction and replace-
ment
- high quality and advanced design in manufacturing
- periodic maintenance
B-12
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Swiss Association of Heating Equipment Manufacturers (VSO):
"Service Statistics as of March 30, 1980", internal Memo
Besides the information for Figure 1 (size distribution), other numer-
ical data in the report are:
- 30% of all installations are periodically (once per heating period)
maintained according to a long term contract between owner and manu-
facturer
- In Switzerland there are 1110 service technicians for oil and gas
burners, 350 of them are federally licensed. This corresponds to
622 burners installed in Switzerland per service technician.
B-13
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