LAF (Location Adjustment Factors) coefficients, also known as reduction or localization coefficients, are used to achieve fair and precise billing of heating costs in multi-unit buildings. They specifically account for the unfavorable location of a given unit within the building structure, such as near gable walls or in the attic.
They are applied by adjusting the actual readings from heat meters or heat cost allocators with the values of adjustment coefficients determined for all units in the building.
In addition to the unit’s location within the building structure, the calculations of the coefficients consider the type and condition of the building’s thermal insulation and individual characteristics of each unit, such as the length of external walls, the total area and quality of windows, the type of heating system, and finally, the unit’s floor area and volume.
The obligation to use LAF adjustment coefficients arises from the Regulation of the Minister of Climate and Environment of December 7, 2021, concerning the conditions for determining the technical feasibility and cost-effectiveness of using heat meters, heat cost allocators, and water meters for measuring domestic hot water, conditions for selecting the method of allocating heat purchase costs, and the scope of information included in individual billing.