Should we have peak-time energy tariffs?

Well it sounds like an idea dreamt up by a committee. A far simpler, more flexible and proven method would be to charge a higher rate for every unit of energy used above a pre-determined amount. No need for complicated “smart meters” or having your washing machine switched off in the middle of a cycle (which might waste more energy than it saves if it has to warm up again), it’s the way the Dutch consumption tax works.

The pre-determined amount is established from the size and type of the property of course.

Surely we already have a “peak time tariff”? It’s what we all pay all day every day unless we have an Economy 7 meter and it’s based on the “peak” load being during working hours when shops, offices, and (when we had any) industry are all consuming power?

After all, that was the whole point of “Economy 7” or, to give it it’s full official title “OFF PEAK electricity”.

Supposedly electricity used between midnight and 7:00 a.m. was “off peak” because so few commercial users were operating in those hours.

But that was all set up back in the days before 24/7 living, round the clock shops and the like, so our lifestyles have rendered the system somewhat out of date.

I have no objection to day and night tariffs at all, but I do think that introducing anything extra will cause confusion and hardship. It may also be a health and safety issue: we are always being told now that appliances such as washers should NOT be left on unattended or at night time in case they malfunction: if we introduce even more tariffs that are specific to times of day people will be more likely to take risk and there will be more house fires, floods, etc.

Personally I would say that what we need is not a greater number of tariffs but an honest pricing policy by the energy companies and appliances that really do save energy, not an energy rating scheme that cons us into using more (see the convo’s on energy labels, energy saving appliances and so on for info on this).

The energy companies would like to impose fluid tariffs on the consumer for the purpose of shareholder value and in order to invest in new plant.It has to been estimated that the electricity supply industry will require £200 billion in the next 10 years.The point has been reached after taking out huge profits from energy consumers since privatisation,a succession of owners,the majority foreign and not quoted on the UK financial market have reached the time when the generating and transmission system requires updating.The electricity supply industry was valued at £37 billion but was sold off for £7 billion and attracted investors like bees round a honeypot.Further, successive governments have allowed generating companies to become vertically integrated companies,ie generating thir own energy and supplying their own industrial and domestic consumers.Consequently there is no competition at the wholesale level which must have an adverse effect on industrial and domestic pricing.Ofgem are reported now to be looking at energy pricing but no doubt it will return a report, “all is well”

By 2016, fossil fired plant will be subject to the full rigour of the Large Combustion Plant Directive which will force a reduced operating regime and ultimately the decommissioning of such plant if the generating plant has not been retro fitted with FGD (Flu Gas Desulphurisation).

Coupled with this there are a number of alliances who hope to install a new raft of nuclear reactors which the government hopes will dovetail into the decomissioning of the present fossil fired plant (non FGD and FGD) and represent a climate change ************** main contenders are the EDF/Centrica who hope to commission four 1600mw European Advanced Reactors, a pair at Sizewell in Suffolk and a pair at Hinkley Point in Somerset.EDF for their part,have made some representation for financial support from HM Government while to take 25% of the venture,Centrica have had to fund £2.5 billion in order to buy 20% of the alliance and will have to service this debt.EDF,a French state enterprise,15% under private enterprise have recently had to put their distribution networks up for sale to balance the books.Needless to say,it the former CEGB nuclear organisation had been left in state control then,there would have been already further PWR units such as that at Sizewell B commissioned.

Huhne supports nuclear generation provided that no public money is involved which is an echo of the principle of privatisation in 1990 when it was declared that investment in new plant would depend on the free market.There would be no obligation on generating companies to generate and supply energy if the market conditions were not favourable.Financial returns would decide if newcomers and plant would enter the market.If returns were poor then new plant would not be installed.

Unfortunately nuclear projects cost money and the time lag for the project to be completed and the plant to enter commercial operation can be as long as long as 7 years.The envisaged EDF nuclear plant in the UK will be based on the new plant being projected at Flammenville,Cherbourg and this is at least a year behind time.

Nuclear plants form the base load generating into the electricity grid system.They are not flexible insofar that they cannot be two shifted,ie shutdown and brought back on load after a short shutdown,be it overnight or other low load demand periods.Consequently,off peak load will be essential to maximise the use and enhance the financial returns on nuclear plant investment.The French having a nuclear plant component of 85% must manage this effectively but it requires attractive prices for the consumer to participate.

This raises the question of UK off peak tariffs which in reality penalises the consumer in that the Economy 7 period may be at a cheaper level but the other 14 hours of electricity consumption where the bulk of electricity units are consumed are charged at a higher rate than a consumer who is not on a Economy 7 tariff.So much for the consumer providing load to keep generators operating efficiently and hence cheap during the night “trough”

Regarding the centralised control over the domestic consumer.This is a hair brained idea.It would require dedicated circuits in domestic premises to be installed together with the control systems in place.Industrial consumers would be rewarded with attractive tariffs where this is neccessary but the bargaining power of the domestic consumer in these circumstances would count for little.

It must be confusing for the average consumer to understand tariffs which appear initially to be attractive but then are replaced by other attractive tarrifs in a loss leader fashion.All are revenue raising exercises designed to increase shareholder value.There does not appear to be financial direction in place in these companies to service the renewal of plant and systems.Its probably a case that these companies do not have long term plans to stay,they can sell out at any time after making a quick profit.

The idea of peak time energy charges, apart from the current off peak tariff, should be abandoned. Those consumers advocating this are the equivilant of turkeys voting for christmas.The main beneficiary will be the foreign investors in Germany, France , Spain and USA not the people in the UK.
If the energy supply industry is to remain privatised the tariff structure introduced by the Co-op should be forced on all electricity and gas companies with the actual prices being approved by OFGEM before they can be applied.
The best solution would be to nationalise the industry mainly as it was before.

Be very careful about taking Ofgem surveys at face value. Prof Stephen Littlechild (“Ofgem’s Procrustean Bed”) has written a very good critique of Ofgem’s approach to reforming the energy retail market. New entrants to this market would be more viable if we as customers were more willing to sign up to energy tariffs that automatically tracked commodity costs.

One thing that concerns me about switching appliances off for short periods is the fact that sometimes they fail to start up again! I had a freezer which was working fine, it was 6 years old and never showed any sign of a problem till we had a double power cut within 24 hours. The first time it happened just before we went to bed and the machine started up ok, but we then had the second in the middle of the night and that finished the machine off! What impact would it have in particular on older freezers/fridges if constantly turned on and off to save power that is what we don’t know? Lots of people on low incomes cannot afford to keep updating their larger appliances, so are at more risk of appliance failure than those with more modern machines.

“”Experts” are recommending varying energy prices throughout the day. Is this a genius way to cut our bills and help the environment.”
Come on get real, only a complete fool would believe that in any way shape or form this will reduce energy costs for any consumer.
It would of course make energy generation cheaper for the supplier, but this saving will go to increase the already record breaking year on year profit for shareholders. The consumer or “victim” won’t see any benefit.
If you really think otherwise more fool you.

Re-nationalise and give hard pressed consumers a say through the ballot box.
They sure as anything don’t get a say now.