Get paid up to £6pkWh for not using big appliances in the evening?

chubsta

There has been much in the media over the last couple of days about a scheme whereby you will effectively be paid to not use big appliances (mentioning washing machines etc) during the peak evening hours. The only thing no-one ever mentions is how it could actually work - to me it all sounds like a load of 'b******s' but if there is even a grain of truth in it perhaps someone could enlighten me.
The only way I can see it working is as a short term thing where they do offer a rebate of some sort if your smart meter shows very low usage in the early evening when demand is generally the highest, with a view to then introducing tiered pricing where evening prices go through the roof so they can claw their money back...

[Deleted User]

Not "with a view to then introducing tiered pricing", just actually introducing it.  A tariff that has a much higher unit price in the peak period offset against a slightly lower unit price the rest of the time.

If you don't use so much in the peak, it could then be described as saving by comparing what you would have paid if you had continued with the old usage pattern.

(Without changes to the price cap method, there would have to be a slightly lower 'off-peak' charge to avoid exceeding the cap, similar to the deemed 58/42 split for E7)

pochase

There were some comments in another thread.

Seems this is a test Octopus is currently doing. The user who is part of the test reported getting a premium of 21p for halving the energy use during a certain time, far far away from £6.

Vincero

It does sound like pie in the sky.
The reports suggest simply lowering the amount you use would maybe provide a rebate. The only way the could tell that is to average people's usage and that seems like a lot of statistical analysis per user.
More likely may be those who use less than the 'average' spot consumption at certain times may get something back.

The problem with this is that suppliers have been generally slow with implementing time of use tariffs and I expect many of them aren't even geared up yet to process the usage data.

The potential is there.
Smart meters can record either 48 different daily usage segments (every 30 mins), or do multi-hour blocks for each separate day of the week. Accordingly they can be used to bill for a different rate every 30 mins, or offer differing rates for every few hours on each different day.

I just don't see many providers delivering on it nor UK gov (fortunately for this corrupt bunch) being able to work out how to harness that information / potential pricing structures.

Sea_Shell

As with all these schemes, the devil will be in the details!!

What will cutbacks be measured against?

[Deleted User]

You don't need to measure any cutbacks or do it as a rebate.  Just with different unit rates at different times.

Saying "look, here's how much you could have been charged" can be polished as "here is how much you saved"

Section62

[Deleted User] said:

Not "with a view to then introducing tiered pricing", just actually introducing it.  A tariff that has a much higher unit price in the peak period offset against a slightly lower unit price the rest of the time.

Yes, just doing with smart meters what smart meters were introduced to do.

And for marketing purposes pitched as "you can benefit by up to £6 per kWh", rather than "each kWh you do use in the peak hour will cost you up to £6".

Sea_Shell

But what of those already on a fix.

They'll be excluded from any TOU change in rates, so that won't work.

born_again

I would guess  that the majority of the country do not use big appliances in the evening. Most will just be sat down watching TV etc.

I can see it a excuse to up daytime costs.

CSH1

If it is £6 an hour those that go abroad for a couple of months in the winter will be quids in.

Mstty

born_again said:

I would guess  that the majority of the country do not use big appliances in the evening. Most will just be sat down watching TV etc.

I can see it a excuse to up daytime costs.

5-8pm will be the key time for heating in the winter, oven/cooking usage and entertainment. Games console, gaming PC's and TVs and TV set top boxes.

Are you sure the majority of the country applies to your statements.