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Tiered Rates
ispookie666
Posts: 1,194 Forumite
in Energy
Does anyone know why Tiered Electric Pricing is not used in the UK? It seems to work well in other countries?
The significant jump in unit prices among tiers can incentivise people to become energy efficiency
The significant jump in unit prices among tiers can incentivise people to become energy efficiency
“Don't raise your voice, improve your argument." - Desmond Tutu
System 1 - 14 x 250W SunModule SW + Enphase ME215 microinverters (July 2015)
System 2 - 9.2 KWp + Enphase IQ7+ and IQ8AC (Feb 22 & Sep 24) + Givenergy AC Coupled inverter + 2 * 8.2KWh Battery (May 2022) + Mitsubishi 7.1 KW and 2* Daikin 2.5 KW A2A Heat Pump
System 1 - 14 x 250W SunModule SW + Enphase ME215 microinverters (July 2015)
System 2 - 9.2 KWp + Enphase IQ7+ and IQ8AC (Feb 22 & Sep 24) + Givenergy AC Coupled inverter + 2 * 8.2KWh Battery (May 2022) + Mitsubishi 7.1 KW and 2* Daikin 2.5 KW A2A Heat Pump
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Comments
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It worked so well that we got rid of it. Energy efficiency will be achieved in the future by encouraging people to switch their usage to low price periods via time-of-use tariffs.1
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Or the significant jump in unit prices penalises those that either need to use more energy or can’t afford expensive energy efficient measures.2
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It does not work "well" or badly in other countries, it is just the system that they have chosen. As a billing system it does not function better or worse.ispookie666 said:Does anyone know why Tiered Electric Pricing is not used in the UK? It seems to work well in other countries?
People can be encouraged to become more energy efficient by raising prices full stop, if you have a lower and a higher tiered rate then in some cases you end up encouraging people to use up to the limit of the lower cost tier, increasing their usage more than they would in a system with one rate.ispookie666 said:The significant jump in unit prices among tiers can incentivise people to become energy efficiency0 -
It should also be remembered that some people use more electric than others as they use it for heating as well, rather than gas. My electricity use of nearly 5000kWh would look huge to the average person in a GSH warmed home - but I'd dearly love to see them achieve my sub-300kWh of gas used per year!
🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25
Balance as at 31/08/25 = £ 95,450.00. Balance as at 31/12/25 = £ 91,100.00
SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her2 -
Valid point @EssexHebridean maybe govt can incentivise houses which do not have mains gas for ASHP and Insulation. Again, this can be done in a tiered funding model.
Maybe per month
0-100 @ 5p
101-200 @ 7.5
200- 300 @ 15
300 -500 @ 25
500 - 800 @45
> 800 @ 60p“Don't raise your voice, improve your argument." - Desmond Tutu
System 1 - 14 x 250W SunModule SW + Enphase ME215 microinverters (July 2015)
System 2 - 9.2 KWp + Enphase IQ7+ and IQ8AC (Feb 22 & Sep 24) + Givenergy AC Coupled inverter + 2 * 8.2KWh Battery (May 2022) + Mitsubishi 7.1 KW and 2* Daikin 2.5 KW A2A Heat Pump0 -
And for those properties which aren't suitable for either of those things....? This is the issue - it's not always as black & white as people think - and the media doesn't help by making people think it "is" just that simple! See also EV's - they don't suit everyone, and more to the point, they're not practical for everyone!ispookie666 said:Valid point @EssexHebridean maybe govt can incentivise houses which do not have mains gas for ASHP and Insulation. Again, this can be done in a tiered funding model.
Maybe per month
0-100 @ 5p
101-200 @ 7.5
200- 300 @ 15
300 -500 @ 25
500 - 800 @45
> 800 @ 60p🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25
Balance as at 31/08/25 = £ 95,450.00. Balance as at 31/12/25 = £ 91,100.00
SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her1 -
I am sure that Utilita swapped from one tier system to another due to people moaning. Then other people started moaning about their new tier system.
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That isn't really energy efficiency, or the even more important actually reducing usage mentioned by the OP. It may help us source more energy from renewable sources though.[Deleted User] said:It worked so well that we got rid of it. Energy efficiency will be achieved in the future by encouraging people to switch their usage to low price periods via time-of-use tariffs.
The idea of tiered charges as a way to encourage a reduction in usage broadly appeals to me, but it is complicated by how household size and health conditions influence usage.2
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