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.

GEandGJE replied on 03/12/2022 20:11

Posted on 03/12/2022 19:18 by young thomas

..but that's the rate at a commercial site in summer, not CAMC in the depths of winter...

we all knew (presumably you included) that usage varies wildly with season, and user..

Posted on 03/12/2022 20:11

Yes I do know and I was responding to you as you had used that value to "allay plenty of fears", so are you suggesting that the club has a summer pitch price deduction and a winter price deduction, or are you suggesting something different.

DavidKlyne replied on 03/12/2022 21:59

Posted on 03/12/2022 16:27 by mickysf

Thing is David, and I am at pains trying not to make this comment political but they (the government) will if it helps them and their cronies. They don’t always have all of us, or even the majority of us, in their interests.

Posted on 03/12/2022 21:59

The thing is that it's not the Government, and I use that word in a neutral way, is not offering this concession it seems to be the Club and associated organisations are putting the suggestion forward. If it were up to me I would prefer, whatever Government was in power to direct any help to where it was most needed and I don't see people who use Club sites and those of associated organisations as being the most in need. I think that is being as apolitical as I can reasonably be?

David

ChocolateTrees replied on 03/12/2022 22:56

Posted on 03/12/2022 19:31 by

Where did you get the figure of 60p kWh?

Posted on 03/12/2022 22:56

Electric car charging companies are charging between 75p and 90p per kWh. When domestic electricity was 15p they charged about 30p to 40p

If the same margin is maintained, that puts the commercial cost at 60p give or take. Call it an educated guess.

cyberyacht replied on 04/12/2022 07:59

Posted on 04/12/2022 07:59

A pound a night differential, whether for HS or EHU, is neither here nor there. Any differential would need to be £5 to be worthwhile. Whether that would tie in with real world consumption I couldn't say.

young thomas replied on 04/12/2022 08:40

Posted on 04/12/2022 08:40

Some have mentioned 40kw!? (from memory) for a winter 24hr period with most van kit on full chat.

obviously, at the guessed figure above of 60p a unit, this would amount to nearly £15 for the electric, so that's both unsustainable as an add on (no one would take that up, would they?) and as a (non-EHU) reduction offered from the normally lower out of season price...no site is going to take £15 off a 'normally' £25-£29 a night winter pitch...as an example, Minehead is currently £29 a night.

so, if the above usage/cost figures are roughly right, where does that leave sites and campers?

obviously, CLs with much lower headline prices will start to look far more expensive if these sort of figures are factored in.

Even larger sites with incl electric won't be able to maintain a lower winter pitch price with users gobbling power as above...

So all sites (large and small) will be hamstrung between taking a hit on leccy to avoid a massive inclusive price and offering a discount for non-EHU which provides a sensible differential so that the site isnt out of pocket but campers don't feel priced out of the, usually lower, winter prices.

campers will need to look hard at what a winter pitch offers if half the price (or more) is going to be the electric charge.

I guess, as there isn't usually a decent chance for solar assistance in winter in the uk, that non-EHU just won't be taken up, so sites will have to construct their inclusive prices carefully over the year to remain viable.

loading prices (even) more at peak (to balance the books) doesn't seem a good (or fair) idea, especially with far less electric used so each provider will have to look very closely at its upcoming financials.

I imagine the market might gravitate to a situation with less sites being open in the winter as the power costs can only be recouped by high prices and campers will feel cheap off season touring is difficult to find in the uk with far fewer 'winter bargains' around.

it might make longer stays in warmer climes more attractive out of season, where winter temperatures are a lot better and, currently, power prices are reasonable.

mickysf replied on 04/12/2022 09:16

Posted on 03/12/2022 21:59 by DavidKlyne

The thing is that it's not the Government, and I use that word in a neutral way, is not offering this concession it seems to be the Club and associated organisations are putting the suggestion forward. If it were up to me I would prefer, whatever Government was in power to direct any help to where it was most needed and I don't see people who use Club sites and those of associated organisations as being the most in need. I think that is being as apolitical as I can reasonably be?

David

Posted on 04/12/2022 09:16

Totally agree with this, David. I would far rather help is given to the very needy, All I was saying was that if it suits them this government will do ‘it’. You will know like the rest of us that we have seen their action cause even more of us to become needy and miserable.

Rocky 2 buckets replied on 04/12/2022 09:24

Posted on 04/12/2022 08:40 by young thomas

Some have mentioned 40kw!? (from memory) for a winter 24hr period with most van kit on full chat.

obviously, at the guessed figure above of 60p a unit, this would amount to nearly £15 for the electric, so that's both unsustainable as an add on (no one would take that up, would they?) and as a (non-EHU) reduction offered from the normally lower out of season price...no site is going to take £15 off a 'normally' £25-£29 a night winter pitch...as an example, Minehead is currently £29 a night.

so, if the above usage/cost figures are roughly right, where does that leave sites and campers?

obviously, CLs with much lower headline prices will start to look far more expensive if these sort of figures are factored in.

Even larger sites with incl electric won't be able to maintain a lower winter pitch price with users gobbling power as above...

So all sites (large and small) will be hamstrung between taking a hit on leccy to avoid a massive inclusive price and offering a discount for non-EHU which provides a sensible differential so that the site isnt out of pocket but campers don't feel priced out of the, usually lower, winter prices.

campers will need to look hard at what a winter pitch offers if half the price (or more) is going to be the electric charge.

I guess, as there isn't usually a decent chance for solar assistance in winter in the uk, that non-EHU just won't be taken up, so sites will have to construct their inclusive prices carefully over the year to remain viable.

loading prices (even) more at peak (to balance the books) doesn't seem a good (or fair) idea, especially with far less electric used so each provider will have to look very closely at its upcoming financials.

I imagine the market might gravitate to a situation with less sites being open in the winter as the power costs can only be recouped by high prices and campers will feel cheap off season touring is difficult to find in the uk with far fewer 'winter bargains' around.

it might make longer stays in warmer climes more attractive out of season, where winter temperatures are a lot better and, currently, power prices are reasonable.

Posted on 04/12/2022 09:24

I have family members living in Eastern Spain who have energy prices ramped up by 65%+, that was early September. I guess the trek to warmer climes will need fuel for a vehicle to get there to save money on energy. . .Mmmm🤔

ChocolateTrees replied on 04/12/2022 09:25

Posted on 04/12/2022 09:25

YT,

I am not sure 40kWh has been mentioned as a sensible usage? That would be a HUGE amount of electricity drawn by a single caravan or camper. Close to a constant 1.7kW for the entire 24h period. Even 24kWh would be pushing it for a “normal” user, but might be used in winter. 
If you add an awning heater, running 24h then you might approach that, but that is discouraged by the club and many CL. Car charging could take you close to that number, but even that would be tough without risk of tripping a breaker. 

However, 40kWh in a 24h period is possible, even on a 10a hookup. And at 60p/kWh that is £24 not £15. Completely unsustainable on a commercial pitch, as you say. 

young thomas replied on 04/12/2022 09:52

Posted on 04/12/2022 09:52

CT, apologies for the appalling maths (let's call it a typo😉) ....I think it was PeeDee that mentioned this large number..

either way, even say 24kwh, that would produce the £15 I was referring to, so the rest of the post, and the potential unfolding scenarios, hold true.

young thomas replied on 04/12/2022 09:57

Posted on 04/12/2022 09:24 by Rocky 2 buckets

I have family members living in Eastern Spain who have energy prices ramped up by 65%+, that was early September. I guess the trek to warmer climes will need fuel for a vehicle to get there to save money on energy. . .Mmmm🤔

Posted on 04/12/2022 09:57

You're right, and that's not cheap either....but I am referring to folk who might stay a little longer than a weekend😉

our costs are spread over 60-90 days so it doesn't (seem to) hurt quite as much.

this autumn electric costs were €0.40 a kWh. I'll be back again this spring so it'll be interesting to check on them.

im sure my upcoming contract has €0.40 in it.

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