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Why is electricity so cheap atm?
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A few months ago we decided to switch to a daily-tracker tariff (special smart meter tariff where we get charged daily based on the average daily wholesale rate). It works out to be between 11p and 14p/kwh depending on the day. We‘ve never even come close to the price of 27p that everyone else seems to paying with normal contracts. It’s essentially halved our electricity bill! However, I just don‘t understand „why“ electricity is so cheap right now. What happened to „prices will stay high for quite some time“. It‘s not like it’s been windy or sunny. Based on industry forecasts we‘ll even be under the govt price cap at the peak of winter.
Also, given the above, why is the government not forcing tariff reductions for normal folk? Electricity companies are raking in huge profits right now!
Fiends of ours have been wanting to get a smart meter since February so they can switch to the same daily tracker tariff we are on, but they constantly are given excuses (engineer shortages, stock outages, schedule conflicts, etc etc). They feel like they are being messed about purely because they are currently paying double what I’m paying. If energy prices really are so low right now, how about the government enforce price reductions or at least fine electricity companies for failing on rolling out smart meters fast enough? |
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By *usie pTV/TS
over a year ago
taunton |
I was about to ask a similar question, what is everyone paying I did a very stupid thing and fixed my price for 3 years more or less at the hieght of the panic as the energy advisers convinced me at the time it would continue to rise, mine is with EDF at 34p KW and 25p a day standing charge. I was on 15.9p prior although I am on a small business tariff. At the time EDF were the only company that would agree to bill each month for the amount used all the rest wanted a fixed DD that was at least twice the amount I was likely to use, no wonder they have 8 billion £s of customers money. |
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"I was about to ask a similar question, what is everyone paying I did a very stupid thing and fixed my price for 3 years more or less at the hieght of the panic as the energy advisers convinced me at the time it would continue to rise, mine is with EDF at 34p KW and 25p a day standing charge. I was on 15.9p prior although I am on a small business tariff. At the time EDF were the only company that would agree to bill each month for the amount used all the rest wanted a fixed DD that was at least twice the amount I was likely to use, no wonder they have 8 billion £s of customers money. "
Mines £150 to £200 a month. I think it was more than that earlier in the year |
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By *adMerWoman
over a year ago
Sandwich |
Strangely enough after being over £700 in credit and finding myself financially embarrassed earlier this year, I cancelled my direct debit.
I now just pay each bill monthly and I paying nowhere near what they want for a dd. I am aware the bills will increase in the winter, but not enough to warrant having to pay so much!
I am really annoyed that it’s virtually a monopoly these days again though!! |
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"I am really annoyed that it’s virtually a monopoly these days again though!!"
Yep! Nearly all the good providers went bust and now we are back to a handful of incumbents who are definitely enjoying their monopolistic situation. |
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"Strangely enough after being over £700 in credit and finding myself financially embarrassed earlier this year, I cancelled my direct debit.
I now just pay each bill monthly and I paying nowhere near what they want for a dd. I am aware the bills will increase in the winter, but not enough to warrant having to pay so much!
I am really annoyed that it’s virtually a monopoly these days again though!!"
I do that. The amount they wanted on DD was taking me loads in credit! I’m £800
In credit with gas which is nice now as it’s coming up to winter and I won’t have to worry so much about heating but I pay the actual bill monthly now for the electric |
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By (user no longer on site)
over a year ago
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By sheer luck, during the last crisis, I was already on a fixed tarrif that, with the govt. subsidies, kept my monthly dual fuel bill at @ £53 a month throughout. Now that it has gone back to standard tarrif and the little credit that had accrued is gone, I simply pay off the amount owing each month. My supplier tries to get me to overpay each month to build up credit but I prefer the money in my account rather than theirs. |
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"I just don‘t understand „why“ electricity is so cheap right now. What happened to „prices will stay high for quite some time“. It‘s not like it’s been windy or sunny. Based on industry forecasts we‘ll even be under the govt price cap at the peak of winter.
Also, given the above, why is the government not forcing tariff reductions for normal folk? Electricity companies are raking in huge profits right now!
how about the government enforce price reductions or at least fine electricity companies for failing on rolling out smart meters fast enough?"
because they are a private company we cant dictate our terms onto them.
you either pay it or loose it comes to mind from the energy companies
edf is owned by france government whilst ours sold it
if you want the government to take notice then its called cripple the infrastructure but people are selfish
to do that everyone needs to turn off at the meter at peak time 4-6pm as thats when the whole system is powering up for full power.
note that will cripple the infrastructure as all there machines will be screaming to be shut down and it will crash and cause black outs
but that wont happen
its the only way for the government and the energy companies to take note and do something about it
at moment your all a single voice with no power, join as one and give the system some hell and something will get done about it. |
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By *ucka39Man
over a year ago
Newcastle |
People could actually cut the cost further by installation of the solar power system in long run worth the price of installation. It would've paid for itself then maybe appliances change everything over so you don't have any gas (savings again) wood burner |
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"People could actually cut the cost further by installation of the solar power system in long run worth the price of installation. It would've paid for itself then maybe appliances change everything over so you don't have any gas (savings again) wood burner "
I gather you havent looked into it the cost is high for start up your looking at 5000.00+ for a basic system.
though a sand battery has some issues of transfer it has good months storage.
whilst the wood burner has its own issues of storage and can you burn it in that area.
not many people have space for these
whilst i have a rocket stove heater that burns less wood but produces 4hrs worth of high heat.
then your dealing with one room thats heated ( woodstove ) vs ducting the heat around the home. |
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I just saw another thread where loads of people were against smart meters (no reasons given) - so I guess that’s why the energy companies get to charge them more - it’s not like they have a choice to switch to daily variable tariffs.  |
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By (user no longer on site)
over a year ago
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My unit rate has gone down but the standing charge has gone up so my DD’s have stayed the same. Bloody high. I might do whah others are doing and cancel it and just pay as and when so monthly outgoings aren’t so high. I know it is meant to cost more this way but the monthly DD amount is way too high. |
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By (user no longer on site)
over a year ago
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"I just saw another thread where loads of people were against smart meters (no reasons given) - so I guess that’s why the energy companies get to charge them more - it’s not like they have a choice to switch to daily variable tariffs. "
I’m one of those people who’s against smart meters in the other thread and didn’t give my reasons of which there are 3. Also for what it’s worth. I did acknowledge that presently most people will save money with a smart meter.
My reasons
1. I don’t trust the installers, even with their torque screwdrivers. Anyone else who installs and commissions a 100amp supply has 5years plus training. Meter installers have more like 5 weeks.
2. I don’t trust the equipment. As in why on earth would I link my energy distribution to my telecommunications at every service point? The security risk is unwarranted.
3. The infrastructure we have in place and the useage increases we experience are unrealistic going into the future. Smart meters are possibly a way of rationing peak electricity useage. I don’t like that possibility.
On the actual subject of the thread, have a look at the energy price deal with Hinckley point C. What we will be paying when it comes online isn’t cool. It ruffled some feathers on 2015 but has slipped into the distant past for now.
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"I just saw another thread where loads of people were against smart meters (no reasons given) - so I guess that’s why the energy companies get to charge them more - it’s not like they have a choice to switch to daily variable tariffs.
I’m one of those people who’s against smart meters in the other thread and didn’t give my reasons of which there are 3. Also for what it’s worth. I did acknowledge that presently most people will save money with a smart meter.
My reasons
1. I don’t trust the installers, even with their torque screwdrivers. Anyone else who installs and commissions a 100amp supply has 5years plus training. Meter installers have more like 5 weeks.
2. I don’t trust the equipment. As in why on earth would I link my energy distribution to my telecommunications at every service point? The security risk is unwarranted.
3. The infrastructure we have in place and the useage increases we experience are unrealistic going into the future. Smart meters are possibly a way of rationing peak electricity useage. I don’t like that possibility.
On the actual subject of the thread, have a look at the energy price deal with Hinckley point C. What we will be paying when it comes online isn’t cool. It ruffled some feathers on 2015 but has slipped into the distant past for now.
"
The smart meter has its own telecoms connection , it doesn’t use your Wi-Fi or what have you. As far as I know smart meters do not have control functions (ie they cannot switch your supply on or off). |
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By (user no longer on site)
over a year ago
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The smart meter has its own telecoms connection , it doesn’t use your Wi-Fi or what have you. As far as I know smart meters do not have control functions (ie they cannot switch your supply on or off)."
You are mostly correct. However the risk of malware or similar attack is quite real and a lot of resources are being used to research and prevent this. Stuxnet is a fine example of a closed and secure system being exploited for chaos, I think the risk is real myself.
The only part where you are not correct is that the DNO can turn your supply off remotely if you have a smart meter. It’s not yet the done thing but it has raised the potential for the supplier to cut off a supply without first getting a magistrates signature.
I’m an electrical engineer as well as a consumer so perhaps I look more at the worst case scenario than a regular consumer. I’m not trying to put people off of getting them. Actually at the moment you will benefit from better tariffs and not being given estimated bills. However it’s not something my colleagues or myself want in our own homes for the reasons stated and also our paranoia about the energy situation over the next 5-10 years.
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Yes, they can turn your electricity off remotely. They can also remotely change the meter to pre-pay or from pre-pay to monthly billing. This results in a much much lower credit score to be required to switch from pre-pay to pay-monthly and the cost is also no longer £200, but capped at £20 or so in admin fee.
I disagree on the safety arguments though.
I was heavily involved in the risk assessment for the government in regards to the smart meters deployment and cyber warfare was the number 1 worry. Nothing is impossible, of course, but the smart meters are currently the safest part in the entire grid. I’m not going to go into detail, but it is much easier to plunge a country into months worth of blackouts through a single attack than it is to hack a smart meter. Reducing these security risks are on the agenda for the coming 8-10 years. |
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It’s not yet the done thing but it has raised the potential for the supplier to cut off a supply without first getting a magistrates signature.
"
Magistrates signature is not required anyway. And for them to turn off a smart meter they still have to send someone to go inside the property to do a welfare check. Pop your granny in the living room and they won’t be allowed to turn off the power regardless. |
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"I just saw another thread where loads of people were against smart meters (no reasons given) - so I guess that’s why the energy companies get to charge them more - it’s not like they have a choice to switch to daily variable tariffs.
I’m one of those people who’s against smart meters in the other thread and didn’t give my reasons of which there are 3. Also for what it’s worth. I did acknowledge that presently most people will save money with a smart meter.
My reasons
1. I don’t trust the installers, even with their torque screwdrivers. Anyone else who installs and commissions a 100amp supply has 5years plus training. Meter installers have more like 5 weeks.
2. I don’t trust the equipment. As in why on earth would I link my energy distribution to my telecommunications at every service point? The security risk is unwarranted.
3. The infrastructure we have in place and the useage increases we experience are unrealistic going into the future. Smart meters are possibly a way of rationing peak electricity useage. I don’t like that possibility.
On the actual subject of the thread, have a look at the energy price deal with Hinckley point C. What we will be paying when it comes online isn’t cool. It ruffled some feathers on 2015 but has slipped into the distant past for now.
The smart meter has its own telecoms connection , it doesn’t use your Wi-Fi or what have you. As far as I know smart meters do not have control functions (ie they cannot switch your supply on or off)."
Think you'll find they can  |
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