Is EHU metering a good investment?

GEandGJE replied on 28/11/2022 17:23

Posted on 28/11/2022 17:23

I was going to post this in the thread that has been Deleted User as a number of folk were saying that EHU Metering would make pitch prices cheaper, so Let's play the You Said, We Listened and Implemented game. This is my view based on my experience as an IT Infrastructure Project Manager and in IT Procurement.  To satisfy the We don't want EHU and want cheaper pitch prices group of people, the We only want to pay for the electricity we use group of people and the I'll pay whatever as I'm on holiday group of people, the clubs only option is to move to metered usage. How does the club do that and what investment would be needed. Lets estimate that the club has over 10,000 pitches with an average of 2 hookups per bollard that's 5,000 bollards that will need to be modified and/or replaced and some of those will need groundwork undertaken for new cabling etc, it will require  putting all pitches out of action and subsequent loss of income whilst the work takes place. This can't all be done at once and I think that a 5 year rollout period would be a stretch and it would take a dedicated team at HQ to manage. They would need to procure equipment, electrical installation teams, groundwork teams, IT systems and software to operate the metering and payments, negotiate contracts with all the power companies who supply the club sites and negotiate with any land owners. I don't think you would get much change from a £5 million investment of the clubs (our) money. Issues that the club would need to consider 1) leased sites where the land owner doesn't give permission for the work to be carried out or the lease will soon come to an end 2) the price per kW from each of the power suppliers will vary depending on contract length and renewal dates, so do they average that price out across all sites or do you have different EHU costs in different areas of the network 3) do you factor the suppliers standing charge into the  metered cost,  4) the club would need to move to a credit card only payment system where the payment for EUH used is automatically deducted at the end of your stay 5) a central dispute resolution team, as there will always be people who will challenge the bill and that shouldn't be the on site teams and finally the biggest question for the club, 6) what return on investment will the club get. I doubt very much that the savings made from the electricity used would come close to the investment needed therefore the remaining investment would need to come from reserves and most likely recouped from increased pitch prices. Lastly this would give the club a very inconsistent offering with not all sites offering metered EUH, the cost of EHU could vary from site to site and an even bigger price variance across the network. Not a very good Business Case in my view, in terms of both investment and inconvenience to the membership so I can't see it happening I'm afraid.

peedee replied on 30/11/2022 12:03

Posted on 30/11/2022 12:03

What return would the club get from 'investing' the £3m plus? 

Is not a fairer system and better control of pitch costs  an advantage?

Firstly it would have to find the money either through loans which it would have to pay back with money from where?

The Club is cash rich and does not need loans, it is planning on investing £12 million next year and £16 million in 2024 on the sites network.  Hopefully some of that will be on metering.

peedee

 

young thomas replied on 30/11/2022 12:07

Posted on 30/11/2022 12:07

Two obvious benefits....

one, as PD mentions, the club has control over the changing/rising costs of its pitch power budget...these costs are borne by the users.

two, those above costs are borne proportionally by those users...you use more, you pay more.

 

JVB66 replied on 30/11/2022 12:22

Posted on 30/11/2022 11:58 by peedee

As the CPES electricians advised it is not that simple to make a site suitable to have meters fitted 

What do they see as not that simple?

peedee

Posted on 30/11/2022 12:22

I am just commenting on what two electricians from CPES said when in conversation last week one comment was security of the supply to metersundecided

DavidKlyne replied on 30/11/2022 12:26

Posted on 30/11/2022 12:26

I just wonder what the "greater membership" would think about the introduction of electric meters and where they would see any benefit? Any saving in site fees is likely to be spent on electricity so many might see metering as more of an inconvenience than having any benefit? Those that don't need a hook-up or those that will only use a minimum of electricity because they either employ their solar energy or refillable gas systems will benefit the most but surely they are a tiny minority of members? If electricity prices remain high it has a benefit to the Club in helping to control costs, however will prices for electricity remain high? Apparently there are calls for Ofgem to decouple the pricing of electricity from gas so that we get a more realistic (reduction) in the price of electricity which is not subject the the same market pressures. 

David

Cornersteady replied on 30/11/2022 12:27

Posted on 30/11/2022 12:03 by peedee

What return would the club get from 'investing' the £3m plus? 

Is not a fairer system and better control of pitch costs  an advantage?

Firstly it would have to find the money either through loans which it would have to pay back with money from where?

The Club is cash rich and does not need loans, it is planning on investing £12 million next year and £16 million in 2024 on the sites network.  Hopefully some of that will be on metering.

peedee

 

Posted on 30/11/2022 12:27

Is it? Not to me, is it for you? If so why do you keep using a system that is to you unfair? Just go to where there is metering?

An advantage to who? I work, invest? on my cycle fitness to help me to enjoy it more, what advantage will metering give to me and I suspect many others?

Yes I'm glad to hear it's investing and those investments will bring in money, will metering?

And if the trial shows negative results hopefully the club won't 'invest' in metering.

 

Cornersteady replied on 30/11/2022 12:29

Posted on 30/11/2022 12:07 by young thomas

Two obvious benefits....

one, as PD mentions, the club has control over the changing/rising costs of its pitch power budget...these costs are borne by the users.

two, those above costs are borne proportionally by those users...you use more, you pay more.

 

Posted on 30/11/2022 12:29

Benefits but not a return on any money spent. 

But as you won't be using club sites why Keep worrying, let those that do perhaps make the decisions?

KjellNN replied on 30/11/2022 12:36

Posted on 29/11/2022 14:13 by JohnM20

So I just omitted to write the h after kW. Yes it does make a difference I grant you. The question is what in a caravan is on for 24 hours per day that is using a minimum of 1 kWh constantly? Certainly our water heater isn't on continuously, far from it. At worst, 6 kW per day using the 2kW setting (which we rarely do). The only possible constant is the fridge  which is 125W so 3 kW per day. 

Posted on 30/11/2022 12:36

What you use is bound to vary with the age of your van, what equipment you have in your van, how cold it is outside, whether or not you use gas for some purposes, and how much you make use of site facilities, if indeed there are any.

Our van is a 2008 model, so predates the improved insulation that came in in , I think, 2009.   We have Alde  heating, but only the 2kw version.  To warm the van in colder weather we use gas initially on the Alde, plus a small electric fan heater for instant heat.  It needs 2kw on the Alde to keep the van warm due to the poorer insulation.

We do not usually go away between the end of October and the middle of March, but one time we did, and it was very cold, we used 40kWh in 24 hours, the fridge/freezer uses 4 and the rest went on cooking, HW and heating.  

While away at warmer times we would use 10-12 kWh  unless we switch to gas for HW and heating as we always wash up in the van, and mainly use our own shower etc.

As we have refillable gas bottles, gas is generally cheaper to use than electricity when electricity is expensive and metered.

Corners........if you get a van with the Alde system, make sure it has, or you add, the load monitor.  This will automatically cut down or off what the Alde uses if you turn on too many other things, you just set it to however many amps are available on your pitch.

JVB66 replied on 30/11/2022 12:55

Posted on 30/11/2022 12:26 by DavidKlyne

I just wonder what the "greater membership" would think about the introduction of electric meters and where they would see any benefit? Any saving in site fees is likely to be spent on electricity so many might see metering as more of an inconvenience than having any benefit? Those that don't need a hook-up or those that will only use a minimum of electricity because they either employ their solar energy or refillable gas systems will benefit the most but surely they are a tiny minority of members? If electricity prices remain high it has a benefit to the Club in helping to control costs, however will prices for electricity remain high? Apparently there are calls for Ofgem to decouple the pricing of electricity from gas so that we get a more realistic (reduction) in the price of electricity which is not subject the the same market pressures. 

David

Posted on 30/11/2022 12:55

As I posted the member with a very upmarket outfit next. to us in a 15year old PVC ( he did talk to us if forced to) said when the electrician was checking the bollard "if the club bring in metering then I will not use club sites"

 

Cornersteady replied on 30/11/2022 12:58

Posted on 30/11/2022 12:26 by DavidKlyne

I just wonder what the "greater membership" would think about the introduction of electric meters and where they would see any benefit? Any saving in site fees is likely to be spent on electricity so many might see metering as more of an inconvenience than having any benefit? Those that don't need a hook-up or those that will only use a minimum of electricity because they either employ their solar energy or refillable gas systems will benefit the most but surely they are a tiny minority of members? If electricity prices remain high it has a benefit to the Club in helping to control costs, however will prices for electricity remain high? Apparently there are calls for Ofgem to decouple the pricing of electricity from gas so that we get a more realistic (reduction) in the price of electricity which is not subject the the same market pressures. 

David

Posted on 30/11/2022 12:58

+1

Takethedogalong replied on 30/11/2022 13:00

Posted on 30/11/2022 12:26 by DavidKlyne

I just wonder what the "greater membership" would think about the introduction of electric meters and where they would see any benefit? Any saving in site fees is likely to be spent on electricity so many might see metering as more of an inconvenience than having any benefit? Those that don't need a hook-up or those that will only use a minimum of electricity because they either employ their solar energy or refillable gas systems will benefit the most but surely they are a tiny minority of members? If electricity prices remain high it has a benefit to the Club in helping to control costs, however will prices for electricity remain high? Apparently there are calls for Ofgem to decouple the pricing of electricity from gas so that we get a more realistic (reduction) in the price of electricity which is not subject the the same market pressures. 

David

Posted on 30/11/2022 13:00

There wouldn’t be enough benefit for us, we are in that minority. But the Club needs to think around future Members, it’s life blood.

That will be led by younger people than the vast majority of existing Members, and that will depend on a lot of factors around affordability of outfit purchase/ownership, affordability of pitch fees, and what it’s competitors are doing. Lots of our family tour, in a variety of outfits, but we remain the only Club Members. We never had a brand new outfit, towed by a nearly new car whilst we were working, and I doubt most working folks will be much different a couple of generations on, not unless they grew up touring or are sharing an outfit with parents.

near Malvern Hills Club Campsite Member photo by Andrew Cole

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