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Hi Michael

It is recommended that the HWC is set at 60 degrees to kill off off Legionnaires. The average loss of Temperature from the tank to the tap is 5 degrees – hence why it is suggested that the tap temperature needs to be at 55 degrees.

Should we worry about it if it is higher than 55 degrees… Maybe
A. Hotter is dangerous
B. Scott suggested the energy saving of the 5 degrees is minimal. But that depends on how much hot water one is using. The average house hold is spending around $100 a month on hot water. The financial saving by reducing the tap hot water is around 9%, that is $9 a month 0r $108 per year. Little movement can add up.
C. I would suggest you have a low pressure hot water system based on the information you have provided. I typically find that with low pressure you have to run the cylinder hot to ensure you get an adequate shower….. So if you do teak the thermostat then don’t be surprised if your shower temperature is inadequate and you need to put the temperature back up.

To pick up on Scott’s point about lagging. Try and lag the first 1 1/2 meters of piping from the hot water cylinder. More is alway helpful. ECCA suggest this will save 5% wastage.