Time of use

Sterlingtimes

Suppose a scheme were to be introduced to financially incentivise a household to reduce electricity usage between 16:00 to 19:00 based on prior usage during those times. Does it make financial sense (putting morals aside) for the household to do everything to maximise usage until the scheme is introduced? How would prior usage be calculated?

MattMattMattUK

Sterlingtimes said:

Suppose a scheme were to be introduced to financially incentivise a household to reduce electricity usage between 16:00 to 19:00 based on prior usage during those times. Does it make financial sense (putting morals aside) for the household to do everything to maximise usage until the scheme is introduced? How would prior usage be calculated?

No one knows yet.

dunstonh

Sterlingtimes said:

Suppose a scheme were to be introduced to financially incentivise a household to reduce electricity usage between 16:00 to 19:00 based on prior usage during those times. Does it make financial sense (putting morals aside) for the household to do everything to maximise usage until the scheme is introduced? How would prior usage be calculated?

Impossible to say.   However, given the way they would need to model various scenarios, it is more likely that they would look at historic use by households during specific months rather than several months before.

[Deleted User]

Sterlingtimes said:

Suppose a scheme were to be introduced to financially incentivise a household to reduce electricity usage between 16:00 to 19:00 based on prior usage during those times. Does it make financial sense (putting morals aside) for the household to do everything to maximise usage until the scheme is introduced? How would prior usage be calculated?

Feel free to use as much as you want until you discover whether your supplier is actually running any trial and what the financial rewards might actually be.

It would be interesting to see whether a payment for low usage or a payment for lowering usage is the method they wish to try next.

Something like the opposite of a take-or-pay contract would perhaps be worth trying.

There’s loads of good historic data for customers now, and don’t smart meters hold twelve months of readings?

MattMattMattUK

Deleted_User said:

Sterlingtimes said:

Suppose a scheme were to be introduced to financially incentivise a household to reduce electricity usage between 16:00 to 19:00 based on prior usage during those times. Does it make financial sense (putting morals aside) for the household to do everything to maximise usage until the scheme is introduced? How would prior usage be calculated?

Feel free to use as much as you want until you discover whether your supplier is actually running any trial and what the financial rewards might actually be.

It would be interesting to see whether a payment for low usage or a payment for lowering usage is the method they wish to try next.

Something like the opposite of a take-or-pay contract would perhaps be worth trying.

There’s loads of good historic data for customers now, and don’t smart meters hold twelve months of readings?

I think it would be best if it was a payment for low usage rather than lowering usage, keeping it below 1kWh between 16:00 and 20:00 for example. If it were a percentage reduction then for low users the choice would be turn everything off, or high users would only have to cut back to a sensible level.

I would happily turn off at the main fuse for the 3-4 hour period for a £10 payment, I would stay at work late, go to the pub, stream on my laptop, play games on my Switch etc. If they want to do that 25 times over the winter (which is the current estimate) then I will be quite happy with that scheme.

[Deleted User]

MattMattMattUK said:

Deleted_User said:

Sterlingtimes said:

Suppose a scheme were to be introduced to financially incentivise a household to reduce electricity usage between 16:00 to 19:00 based on prior usage during those times. Does it make financial sense (putting morals aside) for the household to do everything to maximise usage until the scheme is introduced? How would prior usage be calculated?

Feel free to use as much as you want until you discover whether your supplier is actually running any trial and what the financial rewards might actually be.

It would be interesting to see whether a payment for low usage or a payment for lowering usage is the method they wish to try next.

Something like the opposite of a take-or-pay contract would perhaps be worth trying.

There’s loads of good historic data for customers now, and don’t smart meters hold twelve months of readings?

I think it would be best if it was a payment for low usage rather than lowering usage, keeping it below 1kWh between 16:00 and 20:00 for example. If it were a percentage reduction then for low users the choice would be turn everything off, or high users would only have to cut back to a sensible level.

I would happily turn off at the main fuse for the 3-4 hour period for a £10 payment, I would stay at work late, go to the pub, stream on my laptop, play games on my Switch etc. If they want to do that 25 times over the winter (which is the current estimate) then I will be quite happy with that scheme.

That’s the bit that bothers me too, it could exclude some of the customers who are most engaged with the system just because they’ve already done some energy saving themselves.

Sterlingtimes

Thank you all. The Octopus Agile scheme was rational: the customer was incentivised to shift energy usage to cheaper hours. For the newer proposed scheme, the customer is surely encouraged to build a record of high usage during peak times.

lindatoo

[Deleted User] said:

That’s the bit that bothers me too, it could exclude some of the customers who are most engaged with the system just because they’ve already done some energy saving themselves.

Very true. It would certainly exclude me. I would happily switch my usage to off peak times without any incentive (not that I would turn one down) if it meant avoiding power cuts, but I literally couldn't do much more. I only use my washer 1-2 times a week on short low heat cycles, have so far avoided all use of my tumble dryer, have never used my dishwasher since having it installed, drink 1 cup of tea a day as not overly fussed about hot drinks, never have lights on while watching tv and use low energy cooking appliances. I use about 2-2.5 kwh per day even though I have good fixed rate until Nov 23. So short of having no TV or computer and sitting in the dark it wouldn't work for me. But I guess any scheme would be aimed at higher users who might be able to make a difference.

youravinalarrrf

This might be of interest https://www.bbc.co.uk/news/business-63175030

maisie_cat

[Deleted User] said:

That’s the bit that bothers me too, it could exclude some of the customers who are most engaged with the system just because they’ve already done some energy saving themselves.

That's what these things appear to do, in the same way as those who fixed their tariff not benefitting from the EPG.

Astria

It's great to incentivize people to reduce their energy usage, but surely if everyone changed the time they put the washing, tumble dryer, or dishwasher on, the peak rate would just be shifted to another time?