We have established District Energy Aberdeen Ltd (DEAL) as a wholly-owned subsidiary to channel all our transactions with non-residential customers other than Aberdeen City Council.
This is because Aberdeen Heat & Power is organised as a company limited by guarantee, with five members in place of shareholders. Aberdeen City Council is a member and although it is in a minority, its involvement means we must comply with legislation covering procurement and State Aid. This legislation does not affect AH&P’s trading relationship with residential customers, but it could be implied that the city council is providing a form of State Aid in our trading relationship with commercial customers.
DEAL is organised as a for-profit private limited company, has a separate and independent board, and purchases bulk heat from AH&P which it then sells on to its own customers. This allows us to avoid State Aid implications.
Any financial surpluses DEAL generates are distributed as a dividend to AH&P. This is then used to maintain and extend our heat networks to serve additional buildings, both residential and non-residential, across the city.
All DEAL customers receive the same quality of service as AH&P customers, and also benefit from competitive pricing.