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4 comments on Ofgem Respond to Energy Review

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biffvernon on May 14, 2006 - 3:50pm Permalink | Subthread | Comments top
A few weeks ago the Radio 4 You and Yours programme carried an item about delays in the expansion of wind generation in Scotland.  The wind farm developers were complaining of the lack of grid connection for remote sites.  Their view was that Ofgem were preventing the grid provider committing to timely investment.  The Ofgem spokesman did not deny this but said that Ofgem's duty was to maintain low electricity prices now, rather than allowing investment for the long term at the expense of consumers today.  This short term bias in the way that Ofgem is constituted seems appalling.
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zceb90 on May 14, 2006 - 4:23pm Permalink | Subthread | Parent | Comments top
We need inverted tariffs now so that a basic allowance, typically 50% or so of average domestic consumption is allocated to each household at a low price.  As households approach 100%, 150% etc of average consumption progressively higher unit charges are incurred on the incremental consumption.  Those using (say) 200% of average consumption might well end up paying 2 or 3 times what they pay now.

Such a pricing policy would heavily discourage copious consumption while allowing a basic level of consumption for heat, light and cooking at low cost thus protecting more vulnerable households.  Current pricing mechaninisms achieve exactly the opposite - penalise low users in form of disproportionate standing charges while even providing discounts for the heaviest users.  One would suggest that 'quick profits' rather than prudent long term management of increasingly scarce energy supplies still dominates thinking.

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Tom DC in VA on May 16, 2006 - 5:54pm Permalink | Subthread | Parent | Comments top
This is a good idea.  For my water bill, the "service charge" usually exceeds the charge for water/sewer.  For my gas and electric bills, the "service charge" is usually about 1/2 of that for the energy I use.
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