Smart Meters

PennineAcute

Getting a bit silly this. If the running costs of smart electricity meters is borne by the consumer, what about the running costs of non-smart digital electricity meters? These still need power!

System

PennineAcute wrote: »

Getting a bit silly this. If the running costs of smart electricity meters is borne by the consumer, what about the running costs of non-smart digital electricity meters? These still need power!

It depends on which side of the meter the power is taken from.

PennineAcute

Hengus wrote: »

It depends on which side of the meter the power is taken from.

Well, although assuming can be very dangerous, it is probably not wrong to assume that if the consumer is paying for the running costs of their smart meter, then the consumer will also be paying for the running costs of their non-smart digital meter.

Looking at the big-6, I very much doubt the extra 80p a year (as quoted by Malc) is making a massive inroad into their obscene profits.

House_Martin

PennineAcute wrote: »

Well, although assuming can be very dangerous, it is probably not wrong to assume that if the consumer is paying for the running costs of their smart meter, then the consumer will also be paying for the running costs of their non-smart digital meter.

Looking at the big-6, I very much doubt the extra 80p a year (as quoted by Malc) is making a massive inroad into their obscene profits.

They are discussing the costs of running the freebie gadget.The one that most people bin or chuck in a drawer after a few weeks. That uses up to a quid a year !.ITS NOT A METER !
All electric meters, digital , smart, analogue, are powered from the mains before the meter. .no charges to consumers.
No suppliers make obscene profits.That is only in your imagination.
All businesses need to make a profit.

PennineAcute

House_Martin wrote: »

They are discussing the costs of running the freebie gadget.The one that most people bin or chuck in a drawer after a few weeks. That uses up to a quid a year !.ITS NOT A METER !
All electric meters, digital , smart, analogue, are powered from the mains before the meter. .no charges to consumers.
No suppliers make obscene profits.That is only in your imagination.
All businesses need to make a profit.

I agree, a company that does not make a profit, ends up folding - through lack of cash.

However, the big-6 have to keep their shareholders happy, thus they need to make as much profit as they can.

Now, I can do without a TV and such (just) so the choice to buy is mine. However, doing without electricity and/or gas is slightly harder. So I stand by my obscene profit comment, when it is being made on essentials.

To my reading, they were talking about the running costs of the smart meter, not the IHD.

zeupater

House_Martin wrote: »

... No suppliers make obscene profits.That is only in your imagination.
All businesses need to make a profit.

Hi

.. although the industry does make best use of vertical integration ...

So, to the question at hand ..... Which is cheapest, a supplier making a healthy 33.8% P/S (Profit to Sales) margin, or three making a relatively unhealthy 10% ? ...


A - One supplier, no internal sales :-
vi0 - Fuel(£50) + Cost(£30) =£70 - sell £105.76 - Profit £35.76 - P/S 33.8%

The company is making a profit margin which could be seen to be high by customers and too high by 'on-the-ball' supply regulators.

B - One Supply Group, using internal inter-company sales & accounting :-
vi1 - Fuel = £50 + Cost £10 = £60 -sell £66.66 - Profit £6.66 - P/S 10%
vi2 - Input £66.66 + Cost £10 = £76.66 - sell £85.18 - P/S 10%
vi3 - Input £85.18 + Cost £10 = £95.18 - sell £105.76 - P/S 10%

No component of the supply chain is making over 10% P/S, the 'not-on-the-ball' industry regulator concentrates on vi3 (supply) sales & margins and sees a profit made from supply to the consumer of just £10.58 (105.76-95.18), so 10%, resulting in the industry maintaining a position of - "No suppliers make obscene profits. That is only in your imagination. All businesses need to make a profit".

However in both cases the product cost is the same, (50+30) vs (50+10+10+10), it's just the perception of whether you're being overcharged that's different! ... :whistle:

HTH
Z

Michaelw

There appears to be an offer of Amazon gift cards for the installation of a smart meter.More here.

my energy firm is now offering a bribe to get one and the rewards may improve

http://www.thisismoney.co.uk/money/bills/article-5554039/My-energy-firm-offering-bribe-smart-meter.html

badmemory

They must be getting desperate if they need to bribe people to have one! But guess who is paying for the bribe. Two hints - it won't be their CEO & it won't be their shareholders.

zeupater

Michaelw wrote: »

There appears to be an offer of Amazon gift cards for the installation of a smart meter.More here.

my energy firm is now offering a bribe to get one and the rewards may improve

http://www.thisismoney.co.uk/money/bills/article-5554039/My-energy-firm-offering-bribe-smart-meter.html

Hi

But the issue is that for every £30 'bribe' paid in vouchers, they stand to make over £500 in additional revenue from the same customer! ... but it certainly looks like they're starting to worry over the level of uptake despite all of the expensive [STRIKE]advertising[/STRIKE] propaganda.

A survey I recently saw suggests that proportion of energy customers having a negative view on smart-metering outnumber those with a positive view by between 3:1 & 5:1 (depending on the strength of the view) ... that's some slope for the project to climb and it seems to be getting steeper as consumers realise that despite the industry having claimed that the meters will be supplied for free, they will be charged a huge amount of money within their bills for what is a relatively cheap technology with little chance of delivering the promised energy savings ....

I'll sit back and wait for the 'bribe' to be worth more than the total cost of the additional smart-meter charge, after-all the industry stands to save huge amounts of money in reduced meter visits & customer complaints & I've already paid for the replacement meter within past bills (infrastructure maintenance!) ..

HTH
Z

Michaelw

Three-quarters of smart meter owners recommend one

Around 82% of people with smart meters say they now have a better idea of what they are spending on energy, with the same proportion saying they have taken steps to reduce energy waste.

http://www.energylivenews.com/2018/04/04/three-quarters-of-smart-meter-owners-recommend-one/