I said the smart meter booklet delivered to homes in London, though containing Time of Use timetables different than an official website, is likely the one Londoners should assume is correct.
But I also concluded by saying that “92 per cent of the time” I’ll be paying more for hydro and wondered if you are smart enough to save money with the smart meter?
Then I got distracted with other activities and didn’t get back here for awhile.
Regular readers may be used to my distractibility and likely think some of the following thoughts:
Gord’s mother must have worried about her wee boy’s short attention span and inability to sit still.
(She did).
His dad likely thought his son had ‘ants in his pants.’
(He invented the phrase).
His teachers must have had their hands full.
(They did).
Etcetera.
(I agree whole-heartedly).
["You know why I'm smiling?" "Do tell."]
But I come back today with two humble opinions that I’m sure you’ll enjoy hearing.
First, though the smart meter booklet says “if we all make some small changes to how we use electricity, we can also have a positive impact, both on the environment and on Ontario’s energy system,” and that all sounds appetizing (like apple pie with Aunt Jemima syrup on top), there may be, in my humble opinion, a few hidden calories on our plates that we should know more about.
For example, while I’m writing this, I’m paying 5.8 cents per kwh for hydro, a fixed rate. So are all households and small businesses.
Large business and industries are paying less, at a variable rate, i.e.,3.92 cents per kwh (as of 11 a.m. EST today), up from 3.35 cents an hour ago.
Ontario’s biggest users have paid, on average, 3.64 cents/kwh for February and 3.14 cents/kwh since Jan. 1, 2009.
Once the new rates begin, I’ll be paying, according to the smart meter timetable, 9.3 cents before 11 a.m. and 8.0 cents after 11 a.m. (until 5 p.m.) on weekdays and 4.4 cents all day on weekends.
["Timetables may differ in your municipality"]
In other words, when the booklet says “if we all make some small changes” they likely mean “we all” (as in households and small businesses) will have to make pretty big changes in order to spend less on hydro, conserve, and help the environment.
Whereas the other “we all” (as in big businesses, commercial users) will not have the same incentive to spend less, conserve, help the environment etc., unless market prices go up to the same degree as household rates.
If anyone can shed more light on the above matter (use a low wattage bulb), please feel free to leave a comment.
My second humble opinion relates to my earlier statement, i.e., “92 per cent of the time” I’ll be paying more for hydro.
I’d like to amend my statement.
If Ontario’s biggest users continue to pay lower rates on average - with no increase to incentivize conservation - then I’ll be paying more for hydro 92 per cent of the time and accomplishing very little for my money.
***
Everyone in the smart meter booklet is smiling.
The only reason I can come with so far - they all run big businesses.
Please click here to be transported, at the speed of hydro, to Part 6.
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5 comments:
Raising their rates for big users will probably have some impact in local jobs. If we're ready to face up to that, then we are ready to raise their rates.
If you will be paying more for Hydro 92% of the time, is that after you shift your use to off peak hours? I can't find my book right now but I read about ways to take advantage of the off peak rates.
Just a few comments
Firstly, just wanted to make a clarification on what large consumers pay. Firstly, the statement "Ontario’s biggest users have paid, on average, 3.64 cents/kwh for February and 3.14 cents/kwh since Jan. 1, 2009" is slightly inaccurate. The prices you quoted are weighted averages for the entire province. So, that takes into account residential consumption, as well as consumption that occurs when industrial (I use industrial to mean large hydro users) use is light. Further, industrial customers pay a weighted average price. Therefore, if they're using more electricity during times when prices are higher then that portion of their bill will be higher (yes, that means two industrial customers who operate next door to each other can pay a different rate for electricity). Finally, industrial customers pay different rates for delivery (aka demand) as well as a peak hours delivery rate to compensate for the larger demands on the electricity system. So, if you want an incentive, it's to shift consumption such that they lower their weighted average cost, or buy equipment that lowers their demand costs (which should, in turn, lower their consumption).
I think people are getting too hung up on the concept of shifting their electricity use. Sure, you can shift some of your behaviour to days and times when rates are lower; doing laundry on the weekends or buying a water heater that only heats your water between 11pm and 7am. However, avoiding consumption is probably the bigger aspect of this; CFLs, heating or cooling your homes in different ways (keeping your house at 23 vs 21 in the summer) etc.
Just as a disclaimer, I currently work in the electricity industry and have been for the past 13 years,
To Anonymous - we're here to swerve. GAH
Hi LM, Yes, the cost of doing business would go up. I'm ready for that, because it might accomplish two things: I'd become a smarter consumer of goods, maybe spread out my spending to absorb higher costs. Hey, I can darn socks, maybe I could learn a few other recycling skills. Also, a higher rate for business would surely incentivize the hydro-efficiency process within plants, factories, government buildings, etc. I wouldn't recommend a draconian increase, but some.
About my own hydro usage: I can make some adjustments or correct my ways somewhat. It's just that from 7 a.m. - 10 p.m. the rates will be either 8 or 9.3 cents/kwh, up from 5.8 cents. I can only switch so many of my hydro-based activities to the weekend and the 4.4 cent rate. We'll see, maybe I can try harder.
Finally...
Hi Trevor, you're just the person I was hoping to hear from. Thank you for your informative and helpful reply.
Weighted averages needed to be explained and I haven't read all the info on the Ont. Wholesale Hydro link. So thanks for adding your comments re the same.
I mentioned early on that I'm all for the culture of conservation but hope that fairness is a part of that; i.e., that the biggest users are incentivized to make improvements as much as I am. Going from 5.8 to a combination of 8 - 9.3 cents per kwh is a reasonable hike as far as I'm concerned (small residential user) and am playing with the flip side, i.e., what is reasonable to expect from big users.
I'm still working on it, may write a column about it, or two, and do appreciate your insights.
GAH
Haven't forgotten about you and the comment that you left on my blog. I'll give you a response shortly, it's just that it's an interesting question without a very simple answer :)
Our smart meters are coming soon. We are planning now for what's going to be quite a price hike I think. I thought Trevor's comment was very interesting, but I'm still not clear on the question - will industry pay more too? Is it time for a Lights off London campaign - so all those huge buildings have their lights turned OFF when they're closed for business?
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