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.

mickysf replied on 03/12/2022 10:58

Posted on 28/11/2022 18:34 by JVB66

Electricity is legaly only allowed to be "sold on" at the price the seller   ie,  in this instance  the CAMC pays for it,  but what about a standing charge for the meters to cover maintenance and calibration 

Posted on 03/12/2022 10:58

There are ways and means. The higher base price of electric serviced pitches could offset some of the legalities and restrictions of metered costs.  Of course, pitch pricing will have to reflect the whole network’s costings strategy, we’ve always lived will that. Tomorrow may be very different as those on-costs, particularly those energy related ones rise, possibly astronomically. Many of us may be unable to live with that prospect. Some of us may be close now. Difficult times ahead?.

young thomas replied on 03/12/2022 11:04

Posted on 03/12/2022 10:39 by SueandKeith

We have a van on a seasonal pitch in Suffolk.  The site has around 90 pitches, of which 40 are March-October seasonals.

The tourers get a pitch inclusive of electricity, but the seasonals are metered.  We were a bit worried about usage when we took the pitch earlier this year, but it has worked well for us.

A trip to reception gave us a card loaded with £40 credit which loaded to the bollard in a few seconds and gave instant reading of remaining units.  After 40 nights on site our credit was almost used so we added a further £50 to see us through to the end of the season.

On our final day, the remaining credit of 152 units was easily loaded back on to the card to use next year.  We calculated that the electricity cost of 73 nights on site this year was £63, and that included using the Alde heating in April and October. 

K&S

Posted on 03/12/2022 11:04

Is this a club site or a commercial?

if a club site then there is already a model in place to accurately calculate metering costs for the network.

if a commercial, then there is expertise here which could be tapped into to get those cost estimates along with any running costs or manpower requirements.

as it stands from your post, less than a pound a day throughout the summer should allay plenty of fears.

Cornersteady replied on 03/12/2022 11:10

Posted on 03/12/2022 10:55 by young thomas

Of course it's not a charity, nor are many thousands of businesses all over the uk...however, I'm certain each of them will be looking mightily carefully at their costs and wondering how they can pass enough on to their customers without scaring them away.

you seem to think that as you're in a financially sound position then this must apply to everyone else. I'm fairly confident that there will be many members who really are feeling the pinch.

as you say....tough, it's not a charity...but I'm sure the club should be thinking of smart ways in which it can maintain its level of market place share and it's profit rate (to a degree) but without alienating those who've been loyal for years, and it certainly will be some of those on pensions who will be looking very closely at there ongoing cost commitments.

whilst the club thinks its looking to attract new, younger members, we all know where the core demographic is.

BTW, near TC or not, loads of time (months) for members to decide whether that school holiday fortnight away is still doable (cancel within 21 days and deposit returned)...much water under the financial bridge before then.

as I said, time will tell...

Posted on 03/12/2022 11:10

Actually you keep talking about the demographic core but you don't really know what that is, neither do I but as I use club sites far more than you I think I have a better idea.

You're basing it on those on here and perhaps the two times you use club sites. If you went in summer you might think the core is young families.

Scared away? What evidence do you have for that, all those people who have paid deposits?

If they are feeling the pinch then use these cheaper and better (unnamed) sites you talk about, you're talking as if it has to be a club site?

mickysf replied on 03/12/2022 11:12

Posted on 03/12/2022 11:04 by young thomas

Is this a club site or a commercial?

if a club site then there is already a model in place to accurately calculate metering costs for the network.

if a commercial, then there is expertise here which could be tapped into to get those cost estimates along with any running costs or manpower requirements.

as it stands from your post, less than a pound a day throughout the summer should allay plenty of fears.

Posted on 03/12/2022 11:12

The problem here is that any estimates are based on historic data as far as usage is concerned. Unfortunately it is extremely difficult to predict future energy cost effectively. Who would have thought that those costs would be like this now 18 months ago. Heaven knows what the next 18 months will bring.

replied on 03/12/2022 11:16

Posted on 03/12/2022 10:39 by SueandKeith

We have a van on a seasonal pitch in Suffolk.  The site has around 90 pitches, of which 40 are March-October seasonals.

The tourers get a pitch inclusive of electricity, but the seasonals are metered.  We were a bit worried about usage when we took the pitch earlier this year, but it has worked well for us.

A trip to reception gave us a card loaded with £40 credit which loaded to the bollard in a few seconds and gave instant reading of remaining units.  After 40 nights on site our credit was almost used so we added a further £50 to see us through to the end of the season.

On our final day, the remaining credit of 152 units was easily loaded back on to the card to use next year.  We calculated that the electricity cost of 73 nights on site this year was £63, and that included using the Alde heating in April and October. 

K&S

Posted on 03/12/2022 11:16

The user and all related content has been Deleted User

JVB66 replied on 03/12/2022 11:24

Posted on 03/12/2022 11:24

During  the school holidays then families are in the majority of site users(or well off grandparents trying or not to keep grandchildren under.control)

Out of the peak periods it is very much the older retired generation that is keeping sites going

mickysf replied on 03/12/2022 11:28

Posted on 03/12/2022 11:16 by

Interesting.  Thanks K&S.  A few questions.

Generally what use did you make of the power e.g. you mentioned using the Alde, did you also use it for cooking?

Do you know the kWh (unit) rate you were being charged?

If you wanted, could the unused amount be refunded to your account?

Posted on 03/12/2022 11:28

Another question may be can you buy your units now for next season? May be worth a punt as charges may head ever upwards. I guess the answer will be you don’t actually purchase units but your money is set aside against final cost, I may be wrong 

JVB66 replied on 03/12/2022 11:30

Posted on 03/12/2022 11:28 by mickysf

Another question may be can you buy your units now for next season? May be worth a punt as charges may head ever upwards. I guess the answer will be you don’t actually purchase units but your money is set aside against final cost, I may be wrong 

Posted on 03/12/2022 11:30

I think it depends on the type of meter as there are some that can be altered as to what the units price is?

SueandKeith replied on 03/12/2022 11:37

Posted on 03/12/2022 11:37

We use hot water for washing up, heating the tank for half an hour or so beforehand.

We wash at the caravan in the same manner, but use the communal shower block for showering.

We use the gas hob for pans occasionally.  We don't use the oven, but cook on a tepenyaki grill every other day. I should say that in the seasonal van and in our Eriba tourer a gas bottle lasts us 2 years.

We boil a low wattage kettle for tea and coffee, using minimal amounts of water.

When we've used the Alde heating we usually left it on overnight but set at 16C. 

At the end of the season we could have been refunded the unused units.  They did warn us that the 2023 price for units would undoubtedly be more expensive.  They suggested that they would revise the number of units when we return in March to reflect any change.

K&S

 

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