Category Archives: Industry

Consumption control by Price

On the back of the recent Ofgem publication to make all meter types for business and domestic half hourly measured, ensuring accuracy of billing.

It should be understood that day and night power rates include charging components for network distribution and transmission, as well as Renewable Obligations, Feed-in-Tariff, Electricity Market Reform: Contract for difference.

What these components all have in common is the ability to influence our energy consumption patterns.

A client cant understand why two his properties standing side by side and with similar annual consumption figures are offered quite different Half Hourly day, night rates. One looks to be very attractive, whilst the other far less so.

The answer lies in the consumption pattens of the two sites. Whilst one has a high usage during office hours and what are described as the peak hours on the Power Network clock 4pm – 7pm, the other site, being an accommodation block has a steady, better spread of usage over a 24 hours period.

Is the latter site that enjoys the attractive rates whilst the office block seems penalised. Advice from the supplier comes by way of suggestion to move their office opening hours !

With the arrival of smart meters and greater awareness of ones power consumption pattern, there may be thought given by businesses to more than just switching lights off when the room is unoccupied.

Ofgem pushing HH settlements for all

Ofgem has published an open letter confirming the intention  of mandatory half-hourly settlements for all types of meters.

Previously this application was only for businesses with a supply greater than 100Kw and most recently we have had the P272 process bringing in to the regulation all Max Demand (05- 08) meters.

Now Ofgem are talking about making all size of electricity meters half-hourly measured including domestics. This may further improve services for suppliers but could add costs for the ‘service’ to customers