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.

allanandjean replied on 28/11/2022 21:02

Posted on 28/11/2022 21:02

Hi hja, This is one of my previous posts;

Posted on 16/03/2022 19:12
Quote

So far as seeing this “from the other side” goes, I spent time yesterday with the owner of a 300 pitch site near Newquay.

The discussion was wide ranging,  but on EV charging he felt that due to his electricity costs he would not be able to allow it and that he was frustrated by the “high expectations” of guests who wanted low pitch prices but unlimited use of electricity.

He had considered installing EV chargers but the price, for the type he was told he would need, was prohibitive, and it was the same for metered supplies at the pitch.

The site owner has taken the decision not to allow EV charging, and it’s covered in their T&Cs, for the reasons given.

He did not see it was for him, or his customers, to subsidise the equipment, or infrastructure, required to enable him to offer EV charging-he did put it slightly differently!

Hja replied on 28/11/2022 21:28

Posted on 28/11/2022 21:02 by allanandjean

Hi hja, This is one of my previous posts;

Posted on 16/03/2022 19:12
Quote

So far as seeing this “from the other side” goes, I spent time yesterday with the owner of a 300 pitch site near Newquay.

The discussion was wide ranging,  but on EV charging he felt that due to his electricity costs he would not be able to allow it and that he was frustrated by the “high expectations” of guests who wanted low pitch prices but unlimited use of electricity.

He had considered installing EV chargers but the price, for the type he was told he would need, was prohibitive, and it was the same for metered supplies at the pitch.

The site owner has taken the decision not to allow EV charging, and it’s covered in their T&Cs, for the reasons given.

He did not see it was for him, or his customers, to subsidise the equipment, or infrastructure, required to enable him to offer EV charging-he did put it slightly differently!

Posted on 28/11/2022 21:28

Thanks.

Although I do think metering electricity is a different issue to charging hybrid and full ev cars. I notice quite a number of CLs now saying that they dont allow car charging and indicating where the nearest public charging points are.

I'm slightly surprised about the prohibitive costs of metering in general, although I guess that is more about the size of the site and necessary up front payment.  Smaller sites seem to be able to more easily accommodate the costs. 

young thomas replied on 28/11/2022 21:29

Posted on 28/11/2022 21:29

"If quite a lot of commercial sites go down the metering/non EHU route and the Club doesnt but just includes the electricity price within its pitch price as now, then the Club's pitches will soon appear to be very expensive in comparison to other sites."

This is a very salient point....especially if other sites use the same 'from' (absolute minimum) prices the Club does.

a commercial site at, say, £12 a night (for one person plus pitch plus metered electric) looks attractive against a Club site of, say, £16 (for one person plus pitch plus inclusive electric).

customers may have to get used to the 'new' like for like (or not) pricing and be fully aware of what's included.

Of course, in spring/summer it does mean that sites with metered electric might seem like a bargain for those with solar.😀😀😀 (one for each panel).

young thomas replied on 28/11/2022 21:43

Posted on 28/11/2022 21:28 by Hja

Thanks.

Although I do think metering electricity is a different issue to charging hybrid and full ev cars. I notice quite a number of CLs now saying that they dont allow car charging and indicating where the nearest public charging points are.

I'm slightly surprised about the prohibitive costs of metering in general, although I guess that is more about the size of the site and necessary up front payment.  Smaller sites seem to be able to more easily accommodate the costs. 

Posted on 28/11/2022 21:43

If a small site can manage, say, 20 pitches with meters out of the profits from 20 pitches, why can't the club manage 100 pitch metering out of the profits for 100 pitches? The costs might be 5 times as much but so will the level of the profits.

surely, with the clubs economies of scale (and the 'insurances', membership fees etc) they must be at least as profitable (per network pitch) as a small site?

whenever this topic is discussed numbers like £5m are bandied about. Yes, it's a lot of money but then so is the relative price for a 20 pitch site compared to its turnover and profit.

that mentioned £5m is funded across the whole huge site network in the same proportion as the 20 van site....it's only the scale of the number that makes folk gasp... 

Cornersteady replied on 28/11/2022 21:55

Posted on 28/11/2022 21:43 by young thomas

If a small site can manage, say, 20 pitches with meters out of the profits from 20 pitches, why can't the club manage 100 pitch metering out of the profits for 100 pitches? The costs might be 5 times as much but so will the level of the profits.

surely, with the clubs economies of scale (and the 'insurances', membership fees etc) they must be at least as profitable (per network pitch) as a small site?

whenever this topic is discussed numbers like £5m are bandied about. Yes, it's a lot of money but then so is the relative price for a 20 pitch site compared to its turnover and profit.

that mentioned £5m is funded across the whole huge site network in the same proportion as the 20 van site....it's only the scale of the number that makes folk gasp... 

Posted on 28/11/2022 21:55

...say, 20 pitches with meters out of the profits from 20 pitches, why...

Where did anyone mention anything about profits from any number of pitches?

It is against the law to make a profit out of metering pure and simple. A site can pay to install meters but I cannot see how they can make a profit from them to pay for that cost?

JVB66 replied on 28/11/2022 22:05

Posted on 28/11/2022 22:05

Where we are going to stop over Xmas and new year it is a 20 pitch site and the owner is very proud and let's everybody know it wink he spent £60,000 building his new facilities block and he has jus apologised  he has  increased his prices from £20 in the summer to £23 for the winter months per night hardstanding for two adults with 16 amp EHU 

To put things in perspective 

Cornersteady replied on 28/11/2022 22:14

Posted on 28/11/2022 22:14

I think the last time this was discussed and possible calculations it was said that 10,000 pitches was too low, an average pitch size would be higher than 50. From memory the figures from various posters were anywhere from 5 to 10 million pounds. Where would this money come from, either current reserves or higher something?

But it's all up to the club and they've made their position clear, posted upthread by DK.

GEandGJE replied on 28/11/2022 22:14

Posted on 28/11/2022 22:14

I don't think that an honesty system would work. JVB has posted on a previous thread that he had overheard somebody boosting that they didn't include their children on the booking to save money, also remember that some sites are open to non members and there's nothing to stop somebody plugging in overnight. Unfortunately people who are happy to scam the system do walk amongst us. I wouldn't want site staff having become EHU police.

young thomas replied on 28/11/2022 22:27

Posted on 28/11/2022 21:55 by Cornersteady

...say, 20 pitches with meters out of the profits from 20 pitches, why...

Where did anyone mention anything about profits from any number of pitches?

It is against the law to make a profit out of metering pure and simple. A site can pay to install meters but I cannot see how they can make a profit from them to pay for that cost?

Posted on 28/11/2022 22:27

Where did anyone say making a profit out of electricity sales?

I was taking about the general profit made from 'each pitch'....ie total profit divided by number of pitches.

all sites make improvements from their profits...or sometimes borrow to make a significant investment...

JVB66 replied on 28/11/2022 22:30

Posted on 28/11/2022 22:14 by GEandGJE

I don't think that an honesty system would work. JVB has posted on a previous thread that he had overheard somebody boosting that they didn't include their children on the booking to save money, also remember that some sites are open to non members and there's nothing to stop somebody plugging in overnight. Unfortunately people who are happy to scam the system do walk amongst us. I wouldn't want site staff having become EHU police.

Posted on 28/11/2022 22:30

Our granddaughter works at Tesco's while at uni and when away from uni and as I have posted before she as a multi-tasking staff member works on the self checkout area and  if they are asked to do checks they always have security close by when they as is normally the case some shoppers are caught,and she says it is quite often,

She says if Tesco's could recruit staff they would stop self checkouts as it is quite an easy method of some to get a "cheap shop"

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