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.

brue replied on 05/12/2022 18:30

Posted on 05/12/2022 18:30

I read this via a member of staff on Trust Pilot and obviously costs and consumption go hand in hand.

mickysf replied on 05/12/2022 18:34

Posted on 05/12/2022 18:26 by SteveL

I doubt that relates to consumption, rather the price they are having to pay for it. Perhaps they were hoping to get a better long term deal. Certainly when our current contract comes to an end our costs will increase by 100% overnight. I wouldn’t have thought that at the beginning of the year.

Posted on 05/12/2022 18:34

In the past it not been so much of an obvious issue but price and consumption are inextricably linked and very much becoming a major feature in our budgeting as in those hotels, cruises, taxi firms and everyone else. Certainly it is in our homes but it’s also having a dramatic effect on the pricing structure of all in the leisure industry. Why are so many saying that pitch prices are now exorbitant, you really do know why, don’t you!

JVB66 replied on 05/12/2022 18:49

Posted on 05/12/2022 18:26 by SteveL

I doubt that relates to consumption, rather the price they are having to pay for it. Perhaps they were hoping to get a better long term deal. Certainly when our current contract comes to an end our costs will increase by 100% overnight. I wouldn’t have thought that at the beginning of the year.

Posted on 05/12/2022 18:49

 you could be right especially as it came from a member of this clubs EGH? staff and probably given as an answer by the marketing dept  for maximum effect for when the prices are questioned?

SteveL replied on 05/12/2022 18:49

Posted on 05/12/2022 18:34 by mickysf

In the past it not been so much of an obvious issue but price and consumption are inextricably linked and very much becoming a major feature in our budgeting as in those hotels, cruises, taxi firms and everyone else. Certainly it is in our homes but it’s also having a dramatic effect on the pricing structure of all in the leisure industry. Why are so many saying that pitch prices are now exorbitant, you really do know why, don’t you!

Posted on 05/12/2022 18:49

Are many saying they are exorbitant? I agree there are a few on CT, although quite a few of those don’t even use them, preferring CL’s or non CC sites, so hardly representative. From what I can see of advanced booking, when making my own, the sites still seem fairly popular. Energy in general has increased in price, as have wages, consumables and bought in services. Although electricity is a large element, it is by no means the only reason for escalating prices.

mickysf replied on 05/12/2022 18:55

Posted on 05/12/2022 18:49 by SteveL

Are many saying they are exorbitant? I agree there are a few on CT, although quite a few of those don’t even use them, preferring CL’s or non CC sites, so hardly representative. From what I can see of advanced booking, when making my own, the sites still seem fairly popular. Energy in general has increased in price, as have wages and consumables and bought in services. Although electricity is a large element, it is by no means the only reason for escalating prices.

Posted on 05/12/2022 18:55

It not just CT users saying this but folk on other forums too. Thing is it really isn’t, as you suggest, just electric prices driving the price hikes across our budgets, it’s the wider world wide energy crisis. Oh, sorry to mention this but Brexit too amongst other things!😱

Tinwheeler replied on 05/12/2022 19:02

Posted on 05/12/2022 18:55 by mickysf

It not just CT users saying this but folk on other forums too. Thing is it really isn’t, as you suggest, just electric prices driving the price hikes across our budgets, it’s the wider world wide energy crisis. Oh, sorry to mention this but Brexit too amongst other things!😱

Posted on 05/12/2022 19:02

There’s no doubt at all that energy prices are pushing up the cost of everything we buy but it is not the sole reason for the escalation in site prices which has been a contentious issue for years as can be seen from the frequently recurring theme on here. There are many other factors involved. Dare I mention the cost of the new booking system?🫢

Cornersteady replied on 05/12/2022 19:03

Posted on 05/12/2022 18:11 by brue

I presume you are aware Corners that CAMC have just put their prices up, again. They have stated they underestimated by 100% energy costs for this year, that's quite an underestimated amount! Therefore requests to reduce consumption eg not leaving heating on in a van when you are out are sensible requests to prevent further price hikes.

Posted on 05/12/2022 19:03

I did see it but paid little attention to be honest, I imagine that they can only go on previous years consumption and they, like the rest of us, were caught out by the increases. 

I may have missed it but do they actually ask to have heating off while out?

Cornersteady replied on 05/12/2022 19:06

Posted on 05/12/2022 18:30 by brue

I read this via a member of staff on Trust Pilot and obviously costs and consumption go hand in hand.

Posted on 05/12/2022 19:06

Of course they do but if the cost doubles overnight then the club has little control over that?

mickysf replied on 05/12/2022 19:18

Posted on 05/12/2022 19:02 by Tinwheeler

There’s no doubt at all that energy prices are pushing up the cost of everything we buy but it is not the sole reason for the escalation in site prices which has been a contentious issue for years as can be seen from the frequently recurring theme on here. There are many other factors involved. Dare I mention the cost of the new booking system?🫢

Posted on 05/12/2022 19:18

Absolutely Tinny, don’t forget the name change, the rebranding, the work time agreement, those political and unmentionable factors, the list goes on! Not all of these are within the control of the club but some may be. As some will say, it is what it is! Our contributions to the hikes are also having a consequence in the grand scheme of things.

KjellNN replied on 05/12/2022 19:22

Posted on 05/12/2022 18:26 by SteveL

I doubt that relates to consumption, rather the price they are having to pay for it. Perhaps they were hoping to get a better long term deal. Certainly when our current contract comes to an end our costs will increase by 100% overnight. I wouldn’t have thought that at the beginning of the year.

Posted on 05/12/2022 19:22

You are lucky if they only go up by 100%! 

We came off our fix in January, our prices are now 3.5 times as much for gas, and 2.3 times  for electricity.  And it is of course generally much colder up here than in central England.

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