Posted by Samsaranda on 10/11/2022 11:03:14:
… the energy companies will roll out different charge rates at different times of the day so when you most need to use energy it will be at its most expensive, it wouldn’t surprise me if the high usage periods will be at a considerable premium over other times, this will only work in favour of the suppliers not the customers. …
A misunderstanding I think. Smart meters are more to do with customers and suppliers working together to get the best out of a basket of energy sources, not all of which are reliable. Suppliers didn't volunteer to install meters, they've been beaten up by governments planning for the future.
When I was a boy almost all UK electricity was generated by burning coal mined here. Those days have gone, not least because coal has to be imported, and almost all our coal burning stations have been replaced. Electricity generation has evolved significantly and where it comes from and how much it costs is far more complicated than in the past. Ignoring Green issues:
- Coal has been phased out in the UK because it's more expensive than Gas and Nuclear. Coal also responds to peaks poorly, and it's particularly expensive to keep a coal power station idling overnight and on Sundays.
- Nuclear is only economic when run flat-out continuously; it's good for handling the base load but hopeless at managing peaks. Many people fear the consequences of a nuclear accident, and nuclear waste is a problem.
- Gas power-stations are quick responding and cheap to run at the moment. They are an excellent way of making electricity. Unfortunately, gas isn't a reliable long-term source of power. Supply isn't guaranteed beyond 20-30 years and delivery is vulnerable. Russian foreign policy has taken advantage of this already by disrupting gas supplies painfully this year.
- Green sources, despite a chorus of naysayers, now provides about 30% of UK electricity. Green is a major player and the only one with a sustainable future. Green sources are also cheap – sunshine, wind, and water don't have to be mined and transported, and there is no effluvia. But there's a giant fly in the ointment! Most green energy depends on mother nature, meaning power can't be guaranteed to be available at any given time. Some system of storage is needed, and so far, nothing cheap and easy is available, yet.
The effect of this new situation is that the value of electricity is going to vary wildly depending on the mismatch between supply and demand. When demand is low and supply high, electricity will be dirt cheap. Conversely, when supply is low and demand high, the cost will rise sharply. Prices could vary hour by hour.
The present system deals with overloads by firing up gas turbines, buying electricity from abroad, reducing frequency or voltage, and if necessary by disconnecting whole districts, usually starting with big industrial consumers where it doesn't cause too much trouble. This won't work so well when a major proportion of the energy comes and goes in bursts. Smart meters and smart devices allow the customer to pay what he wants and if he must. For example, recharging an electric car slowly on a windy night is likely to be considerably cheaper than a fast recharge on a cold, dark windless morning when everyone wants power.
I don't think Smart Meter information is any different from me normally choosing to buy petrol from my nearest cheap pump, but paying over the odds if I have to buy it on a long journey. I think there's a good chance the customer adapting to when electricity is cheap or expensive will be enough to balance the load. If not, there is also advantage to the community for suppliers being able to selectively disconnect devices such as freezers or greedy individuals rather than cutting a whole district off. Pensioners are a likely beneficiary; 'cut everyone in the street apart from Old Joe'.
Prepayment is a problem. It's a good way for suppliers to manage troublesome customers, but they get whacked with big bills because they're unreliable. A Daily Mail reader might approve of foreign layabouts being taught a lesson, but burst into tears when pre-payment is applied to them because they fear change and refuse to cooperate. Unfortunately, ordinary meters are too thick to deal with variable tariffs, and would have to be charged on a fixed tariff, certainly an expensive one. There's no benefit in letting an ordinary meter run on a cheaper tariff than can be managed by a smart meter.
This is only the beginning, but not the first time electricity has undergone major changes. Victorian methods were phased out in the early 20th Century, then a major reform in the 1930's when the National Grid was introduced, another major reform gave us 13A plugs and ring mains in the 1950s, then the demise of coal, and so on. All these changes were greeted with shrieks of pain at the time: the old guard rarely see any advantage in moving forwards, even when the need is urgent.
Interesting times ahead!
Dave
Edited By SillyOldDuffer on 10/11/2022 14:27:33