Is EHU metering a good investment?

GEandGJE replied on 28/11/2022 17:23

GEandGJE

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.

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541 replies

GEandGJE replied on 02/12/2022 23:17

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GEandGJE

Motorhomer

Posted on 02/12/2022 21:32 by young thomas

David, more and more MH are coming with solar panels and lithium batteries aren't necessarily just options....well they have to fit something to justify the outrageous prices!

Dealers are going to push the added value of such extras and the main one will be the ability to operate away from a hook up given reasonable weather.

As these MHers become more confident with their new found powers, they will add to the calls for sites to give the option of a non inclusive hook up, especially if electric prices continue to rise and the 'cost' of this inclusivity becomes ever more noticeable.

Posted on 02/12/2022 23:17

I gather from the volume of your posts that you are infavor of non EHU and I appreciate your point of view but please don't assume and imply that all motorhomers have the same opinion. This hobby is all about choices and the only right way to tour is the way that is right for you.

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replied on 03/12/2022 07:02

Posted on 02/12/2022 23:17 by GEandGJE

I gather from the volume of your posts that you are infavor of non EHU and I appreciate your point of view but please don't assume and imply that all motorhomers have the same opinion. This hobby is all about choices and the only right way to tour is the way that is right for you.

Posted on 03/12/2022 07:02

The user and all related content has been Deleted User

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SteveL replied on 03/12/2022 07:35

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SteveL

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Posted on 02/12/2022 21:32 by young thomas

David, more and more MH are coming with solar panels and lithium batteries aren't necessarily just options....well they have to fit something to justify the outrageous prices!

Dealers are going to push the added value of such extras and the main one will be the ability to operate away from a hook up given reasonable weather.

As these MHers become more confident with their new found powers, they will add to the calls for sites to give the option of a non inclusive hook up, especially if electric prices continue to rise and the 'cost' of this inclusivity becomes ever more noticeable.

Posted on 03/12/2022 07:35

The OP is, Is EHU metering a good investment, rather than should members be given the choice. Our MH came with solar panels, because I specified them, primarily to keep the batteries in good condition whilst in storage. As Covid came with its lock downs within a year of taking ownership, it proved a wise investment. We do use them occasionally to stop at locations we want to visit, where EHU is not available. However, if EHU was available we would use it, wether it be inclusive, optional or metered, using it to the same extent in each case. Therefore in the case of folk like us, investing in the cost of metering would be a waste of money, as it would make no difference to wether we used the site or not. The primary deciding factor being location.

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ChocolateTrees replied on 03/12/2022 08:05

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ChocolateTrees

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Posted on 03/12/2022 07:35 by SteveL

The OP is, Is EHU metering a good investment, rather than should members be given the choice. Our MH came with solar panels, because I specified them, primarily to keep the batteries in good condition whilst in storage. As Covid came with its lock downs within a year of taking ownership, it proved a wise investment. We do use them occasionally to stop at locations we want to visit, where EHU is not available. However, if EHU was available we would use it, wether it be inclusive, optional or metered, using it to the same extent in each case. Therefore in the case of folk like us, investing in the cost of metering would be a waste of money, as it would make no difference to wether we used the site or not. The primary deciding factor being location.

Posted on 03/12/2022 08:05

Or to put it another way, investment in metering may be good for a site because it would make no difference to you selecting it, but would allow the site to sell its pitch at a competitive price, independent of the current price of electricity.

I.e. your indifference to metering or not, is the reason to move forward with it.

What has to be balanced (for the site) is the cost of offering an all inclusive pitch, that remains competitive for low electricity users, against the marginal price of electricity. If unit (kWh) price is high, the cost of the pitch has to cover the high end of users to ensure the site does not make a loss.

The higher the kWh cost, the greater the proportion of the pitch fee. Metering allows the return of that ability to price the pitch on merit, not energy cost. As prices rise so metering becomes not just a good investment, but critical in ensuring profitability can be balanced with marketability.

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replied on 03/12/2022 08:21

Posted on 03/12/2022 08:05 by ChocolateTrees

Or to put it another way, investment in metering may be good for a site because it would make no difference to you selecting it, but would allow the site to sell its pitch at a competitive price, independent of the current price of electricity.

I.e. your indifference to metering or not, is the reason to move forward with it.

What has to be balanced (for the site) is the cost of offering an all inclusive pitch, that remains competitive for low electricity users, against the marginal price of electricity. If unit (kWh) price is high, the cost of the pitch has to cover the high end of users to ensure the site does not make a loss.

The higher the kWh cost, the greater the proportion of the pitch fee. Metering allows the return of that ability to price the pitch on merit, not energy cost. As prices rise so metering becomes not just a good investment, but critical in ensuring profitability can be balanced with marketability.

Posted on 03/12/2022 08:21

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SteveL replied on 03/12/2022 08:35

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SteveL

Motorhomer

Posted on 03/12/2022 08:21 by

Unlike Steve I am not indifferent to metering, if I want to use a site badly enough I tolerate it. However and this is hypothetical, if it were ever a choice between equally attractive sites, metered and unmetered I would chose the unmetered even if it cost more.

Posted on 03/12/2022 08:35

I think there are probably a lot of folk who think that way and are unlikely to be swayed by headline prices, that don’t include EHU because it’s metered, much preferring to know the cost of their holiday in advance. Never been on one but those all inclusive holidays seem popular enough.

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replied on 03/12/2022 09:23

Posted on 03/12/2022 08:35 by SteveL

I think there are probably a lot of folk who think that way and are unlikely to be swayed by headline prices, that don’t include EHU because it’s metered, much preferring to know the cost of their holiday in advance. Never been on one but those all inclusive holidays seem popular enough.

Posted on 03/12/2022 09:23

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young thomas replied on 03/12/2022 09:37

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young thomas

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Posted on 02/12/2022 23:17 by GEandGJE

I gather from the volume of your posts that you are infavor of non EHU and I appreciate your point of view but please don't assume and imply that all motorhomers have the same opinion. This hobby is all about choices and the only right way to tour is the way that is right for you.

Posted on 03/12/2022 09:37

Agreed, there is no right way to tour and we all do it differently.

Like you, im only interested in choices😉

as I've said, MH are now being fitted with more kit which allow a 'way of touring' that wasn't/isn't possible a few years back without this kit.

It's just a by product of a shift forward in technology and, for those who wish to take advantage there's a whole world of vans (when away from say CAMC sites) who don't use a hook up all/some of the time.

some of these will also be CAMC members and I guess they might like the choice to use a CAMC but with the choice to have a tariff without EHU.

personally, I made the choice to have more solar fitted to my van as it gives me more choices as to where we can camp and for how long.

no right it wrong way, just folk using technology to allow a wider choice of options.

with club prices rising (especially noticeable with an EHU inclusive price) more folk are going to be considering their options and what that big panel on their roof can do for them.

that's choice👍

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Cornersteady replied on 03/12/2022 09:38

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Cornersteady

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Posted on 03/12/2022 08:35 by SteveL

I think there are probably a lot of folk who think that way and are unlikely to be swayed by headline prices, that don’t include EHU because it’s metered, much preferring to know the cost of their holiday in advance. Never been on one but those all inclusive holidays seem popular enough.

Posted on 03/12/2022 09:38

+1.

Yes before COVID we did quite a few of those all inclusive and we have a few planned. The first time we were amazed that we actually came back with the vast majority of the money we took away.

But bringing it back to the idea, myth really, often posted (not by you) that all-inclusive means people use the maximum available? All the alcohol you want yet I have never see anyone in any state of intoxication, and remember I'm an expert - I've been to the Bigg market in Newcastle on a Friday night (about 40 years ago and to pick up the children when needed now) although the state of undress in the middle of winter is the same as summer in Spain.