How is this Heating Cost Pain Index constructed?
The idea is rather simple. The climate factor is measured by so-called heating degree days. This number represents the “coldness” of winters in a certain area or country. The more days the natural air temperature falls below a certain level (usually 15 degree Celsius), the higher the number. Therefore, the frequency of cold days as well as the “coldness” of the winters are taken into account. We use here the mean value of the years 2007-2009. The data are taken from Eurostat.
Heating cost is considered as calulated above: as Euro-Cents per kWh “average” heating cost.
The Heating Cost Pain Index is built by multiplication of both elements. For practicability reasons the value is divided by 1000.