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.

DavidKlyne replied on 15/01/2023 10:29

Posted on 15/01/2023 10:29

The Club do seem to be sitting on their hands on this one. They seem to acknowledge that charging for use is the fairer way of doing things but I assume they are concerned about the massive cost of installing meters across the network. Thus far they have not even thought to change the system over to meters on sites they are refurbishing where the costs could be more tightly controlled as probably new bollards are being installed anyway. I suppose there could be several reasons why they are reluctant to move on this. It would be likely that changing over to meters would take some time so you would have some sites with and some without. What would the situation be with sites on short leases, would it be wasted money? Are they just waiting for energy prices to stabilise so they need to do nothing?

David

peedee replied on 15/01/2023 13:55

Posted on 15/01/2023 13:55

The cost will not be massive compared to buying a site and refurbishing it!  I will be interested to see what they do with Steamer Quay and other refurbishments. I don't think it should make any difference to having some sites equipped with meters and others not after all it does not prevent members from not using EHU and by the same token it does not matter if they never equip sites on short leases. The longer it drags on I think the worse it will get because don't forget there is the spectre of the increase in electric vehicles hanging over the Club's head and members are certainly not going to cut back on electricity usage while it remains unmetered.

peedee

Hja replied on 15/01/2023 16:10

Posted on 15/01/2023 16:10

"the spectre of the increase in electric vehicles"

And this includes electric campervans.  I accept it may be some time before we see electric fully fledged motorhomes but there are now increasing numbers of electric campervans.  OK - some time before they become common.  One featured in magazines recently (cant remember which mags) which runs equipment off lithium leisure batteries and solar (massive amounts) and anticipates plugging in to pitch socket for charging vehicle battery on the basis that it will take no more electricity than "normal" non electric vans hooked up to use electricity in the van.  Can also charge from normal charge points.

The CAMC is envisaging electric cars charging at charge points in car parks.  Obviously not appropriate for electric campervans.

If we project forward five years electric campervans will be more common.  Five years is not a long way off in planning terms for the Club for refurbishments etc.  I just hope that, even though as DK says they seem to be sitting on their hands, a lot of appropriate planning is going on behind the scenes.

CaravanRamblings replied on 15/01/2023 16:40

Posted on 15/01/2023 10:21 by peedee

Some commercial contracts in the UK have electricity at £1 a unit. It's not difficult to imagine a large van with full height fridge / freezer using £20 - £30 of electricity a day.

I think your usage is a bit of an exaggeration.  I have such a fridge in my motorhome and when I over wintered in Spain my consumption was 4Kwh per day running the fridge, battery charger and boiling the occasional kettle. Space and water heating was using gas.

I also think sites can charge for electricity supply infrastucture including meters to recover the capital cost over the anticipated life time of the equipment. It is only usage that profit is not allowed. Approved meters are usually guaranteed accurate for up to 20 years before it is recommended they are replaced.

peedee

Posted on 15/01/2023 16:40

Aren't we more or less in agreement 4 or 5 units a day before heating? 

Based on our gas usage we are adding 10 units a day for heating, cooking and bbq. Hence when much colder in UK and maybe a fridge twice the size I don't think it's too far out at £20 - £30. The club may not though be paying the top whack commercial rate and of course this usage is winter not summer.

Without meters though and their current pricing it would appear that maybe summer pricing is subsidising winter stays??

 

Cornersteady replied on 15/01/2023 16:51

Posted on 15/01/2023 13:55 by peedee

The cost will not be massive compared to buying a site and refurbishing it!  I will be interested to see what they do with Steamer Quay and other refurbishments. I don't think it should make any difference to having some sites equipped with meters and others not after all it does not prevent members from not using EHU and by the same token it does not matter if they never equip sites on short leases. The longer it drags on I think the worse it will get because don't forget there is the spectre of the increase in electric vehicles hanging over the Club's head and members are certainly not going to cut back on electricity usage while it remains unmetered.

peedee

Posted on 15/01/2023 16:51

Well I think it was you who quoted a certain sum per pitch to install meters and then the overall cost across the network was a few million, wasn't it? 

Do you know how much a site costs to buy and/or refurb? Even it's the same or more as a club user (you have said you're going to use club sites less and less and perhaps none I recall?) I would personally spend the money on new sites and refurbishments which will at least enable the costs to be recouped unlike meters and the 'evidence' appears to shows it what those actually using club sites really want.

... are certainly not going to cut back on electricity usage while it remains unmetered

Even with meters why would I want to cut back on my electricity usage? I don't at home and when I'm on holiday that is will be the last thing I will do. I won't abuse but I will use whatever electricity I need to enjoy myself, meters or not. And if you think sites prices will go down at all or even significantly with meters then as others have posted before you might be wrong as even you appear to admit:

I also think sites can charge for electricity supply infrastucture including meters to recover the capital cost over the anticipated life time of the equipment.

But then if you're not using club sites? 

KjellNN replied on 15/01/2023 19:38

Posted on 15/01/2023 19:38

OH has been looking at where we might go this year, April to October.

She has found quite a few CLs, and some small commercial sites, are now  saying that electricity will be metered.  Some are including maybe 10kWh in the site fee, others include none but have reduced their price and  made EHU optional.

It would be good if sites that do this included some idea of the price per kWh they will be charging.  Prices are likely not fixed for a long period, but it would be easy for those with web sites to keep their prices updated, and the price to be clearly displayed on  the site.

Without having some idea of the unit cost, one would have little idea of what a stay might cost, whether the stay would be affordable, and whether using gas would work out less expensive.

So far, OH has not found any site that is using metering giving any inkling as to the likely cost per kWH.

Cornersteady replied on 15/01/2023 19:43

Posted on 15/01/2023 19:38 by KjellNN

OH has been looking at where we might go this year, April to October.

She has found quite a few CLs, and some small commercial sites, are now  saying that electricity will be metered.  Some are including maybe 10kWh in the site fee, others include none but have reduced their price and  made EHU optional.

It would be good if sites that do this included some idea of the price per kWh they will be charging.  Prices are likely not fixed for a long period, but it would be easy for those with web sites to keep their prices updated, and the price to be clearly displayed on  the site.

Without having some idea of the unit cost, one would have little idea of what a stay might cost, whether the stay would be affordable, and whether using gas would work out less expensive.

So far, OH has not found any site that is using metering giving any inkling as to the likely cost per kWH.

Posted on 15/01/2023 19:43

A good point, at the very least they should give the current (yes pun intended) price?

DavidKlyne replied on 15/01/2023 19:53

Posted on 15/01/2023 19:38 by KjellNN

OH has been looking at where we might go this year, April to October.

She has found quite a few CLs, and some small commercial sites, are now  saying that electricity will be metered.  Some are including maybe 10kWh in the site fee, others include none but have reduced their price and  made EHU optional.

It would be good if sites that do this included some idea of the price per kWh they will be charging.  Prices are likely not fixed for a long period, but it would be easy for those with web sites to keep their prices updated, and the price to be clearly displayed on  the site.

Without having some idea of the unit cost, one would have little idea of what a stay might cost, whether the stay would be affordable, and whether using gas would work out less expensive.

So far, OH has not found any site that is using metering giving any inkling as to the likely cost per kWH.

Posted on 15/01/2023 19:53

Kj

I think you will have to take that up with individual campsites as it will depend whether its a Domestic/Commercial/or contract price. Probably looking for a minimum of 50p KWh and perhaps as much as £1 a KWh if a commercial contract. You are going in the warmer months of the year so I suppose a rough guide of say £5 a day depending on whether you make use of your gas supply for more than cooking?

David

KjellNN replied on 15/01/2023 20:37

Posted on 15/01/2023 20:37

Our fridge/freezer uses 4kWh per day, so with lights, battery charging, TV and the toaster, we might get away with 5kWh.  

However, April can be cold, especially up here, and we would usually use our own facilities.  Many  CLs have no facilities anyway,  so it would be a lot more than that for heating and hot water if using electricity, even doing all the cooking by gas.

Luckily we have refillable bottles, so using gas for heating and HW is perfectly possible and not too expensive, but for anyone using Calor it could get expensive.  The only problem might be keeping the bottles topped up, depending on where we go.

Yes, one would of course have to ask the individual site, just puzzled why, if they are metering, they have not thought to indicate even the current pricing in their site details.   And keep the info updated.    There  is a big difference between 50p and £1 per kWh.

I think at £1 per kWh we might be going away a lot less!!

 

peedee replied on 16/01/2023 07:16

Posted on 15/01/2023 16:40 by CaravanRamblings

Aren't we more or less in agreement 4 or 5 units a day before heating? 

Based on our gas usage we are adding 10 units a day for heating, cooking and bbq. Hence when much colder in UK and maybe a fridge twice the size I don't think it's too far out at £20 - £30. The club may not though be paying the top whack commercial rate and of course this usage is winter not summer.

Without meters though and their current pricing it would appear that maybe summer pricing is subsidising winter stays??

 

Posted on 16/01/2023 07:16

Yes we are, sorry but I misunderstood your post and thought you were saying £20 to £30 was the price of just running the fridge.

I note in todays news a big energy supplier is predicting prices of energy will remain high and he does not expect gas and electricity bills to return to the levels they were before Covid.

peedee

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