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.

JVB66 replied on 30/11/2022 13:02

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 13:02

With that sort of investment,there is little chance of pitch fees getting much if any cheaper with meters or notundecided

brue replied on 30/11/2022 13:26

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 13:26

I think it could be a fairer system in the long run, there is definitely a bigger range of units on sites than previously eg  we could all be alongside a leviathan coach sized motorhome or a tiny pod van. There are now many large vans with a lot of equipment either fitted or taken along. I'm guessing that most vans on site now use more energy than previously and the costs could be biased towards higher energy users. However we don't know, it's just a law of averages at present.

peedee replied on 30/11/2022 13:26

Posted on 30/11/2022 13:26

I am sure there will be some who will find metering an inconvenience, they are the ones who probably are big users and are subsidised by the more frugal users.

Are those that would benefit most in the minority, who knows? I can only surmise that with the increase in  motorhome membership and with it, short stays and off site trips, it is unlikely to be a minority.

The price of energy is a red herring, regardless of price, it is still a fairer system and offers the Club better control over pitch prices.

peedee

JVB66 replied on 30/11/2022 13:34

Posted on 30/11/2022 13:26 by peedee

I am sure there will be some who will find metering an inconvenience, they are the ones who probaly big users and are subsidised by the more frugal users.

Are those that would benefit most in the minority, who knows? I can only surmise that with the increase in  motorhome membership and with it, short stays and off site trips, it is unlikely to be a minority.

The price of energy is a red herring, regardless, it is still a fairer system and offers the Club better control over pitch prices.

peedee

Posted on 30/11/2022 13:34

The idea of the growth in motor caravans being a different kind of touring does not seem to hold water as it seems the majority of motor caravans are being used as a caravan replacement and staying on sites,especially if they are within a good public transport or easy access to local village or towns

Caravans are always in the majority on sites where alternative transport is not available 

 

Takethedogalong replied on 30/11/2022 14:17

Posted on 30/11/2022 13:34 by JVB66

The idea of the growth in motor caravans being a different kind of touring does not seem to hold water as it seems the majority of motor caravans are being used as a caravan replacement and staying on sites,especially if they are within a good public transport or easy access to local village or towns

Caravans are always in the majority on sites where alternative transport is not available 

 

Posted on 30/11/2022 14:17

Only on Club Sites JV. Away from Club Sites, on CLs, Britstops, Forestry Sites, private sites etc…. Campervans and MHs are out and about each day, hopping from Site to Site. Without hook ups in the Summer…….😁

eurortraveller replied on 30/11/2022 14:37

Posted on 30/11/2022 13:26 by brue

I think it could be a fairer system in the long run, there is definitely a bigger range of units on sites than previously eg  we could all be alongside a leviathan coach sized motorhome or a tiny pod van. There are now many large vans with a lot of equipment either fitted or taken along. I'm guessing that most vans on site now use more energy than previously and the costs could be biased towards higher energy users. However we don't know, it's just a law of averages at present.

Posted on 30/11/2022 14:37

You are dead right. A local builder here is building 25 new houses, and rather than let everyone use as much electricity as they wish and all pay the same , he has decided to have a meter fitted  each of the houses.

JVB66 replied on 30/11/2022 14:39

Posted on 30/11/2022 14:17 by Takethedogalong

Only on Club Sites JV. Away from Club Sites, on CLs, Britstops, Forestry Sites, private sites etc…. Campervans and MHs are out and about each day, hopping from Site to Site. Without hook ups in the Summer…….😁

Posted on 30/11/2022 14:39

Thats both clubs site I would expec with motor caravans,t  but then as us a campervan is nearly as versatile as a tow car

JVB66 replied on 30/11/2022 14:52

Posted on 30/11/2022 14:37 by eurortraveller

You are dead right. A local builder here is building 25 new houses, and rather than let everyone use as much electricity as they wish and all pay the same , he has decided to have a meter fitted  each of the houses.

Posted on 30/11/2022 14:52

And "smart?" As well

Takethedogalong replied on 30/11/2022 15:02

Posted on 30/11/2022 14:37 by eurortraveller

You are dead right. A local builder here is building 25 new houses, and rather than let everyone use as much electricity as they wish and all pay the same , he has decided to have a meter fitted  each of the houses.

Posted on 30/11/2022 15:02

I hope he’s putting solar panels on the roof as well😁👍

Cornersteady replied on 30/11/2022 15:19

Posted on 30/11/2022 14:37 by eurortraveller

You are dead right. A local builder here is building 25 new houses, and rather than let everyone use as much electricity as they wish and all pay the same , he has decided to have a meter fitted  each of the houses.

Posted on 30/11/2022 15:19

Your analogies are always interesting, so is the builder going on to rent those houses out and be the landlord or sell them on?

But it's funny how things are done, here in Keswick a new (locally controversial) Premier Inn has been built from scratch but the biulder hasn't put in meters in each room and apparently each room will pay the same.

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