The problem, however, is that no one at Hydro One has done their homework. Hydro One’s proposed pricing scheme (see the table in my first article) is far too complicated. To take full advantage of the scheme, the average householder would need to have alarm clocks to know when they could cook, heat or air condition, do the laundry etc., at a reasonably economical time. Given also that the price structure varies from season to season, it makes matters even more complicated.
The solution? Easy! Adopt the same pricing scheme that has been used in the UK for many years. It’s called Economy 7. Very simply, electricity delivered to the home between roughly midnight and 7:00 am is much cheaper than electricity delivered during the rest of the day. Here is an example from British Gas, one of the major electricity suppliers in the UK.
British Gas
Day rate – Tier 1 27.5534 p/kWh First 500 kWh/year
Day rate – Tier 2 9.8790 p/kWh
Night Rate 4.4048 p/kWh
Hydro One 11.32¢/kwh Current price
Night & Weekend 8.91¢/kwh Proposed Smart Meter Price
As you can see, electricity prices in general are much cheaper here than in the UK or the rest of Europe, but note the huge difference between daytime and nighttime prices in Britain compared to here. In Britain, it really does make sense to take advantage of the nighttime tariff. Most people with electric heat and hot water stay comfortable throughout a winter’s day, without having to go bankrupt using daytime electricity. The technology exists, and with the right price differential between day and night, very cost competitive.
The problem is, Hydro One is not providing enough of a price difference to make it worthwhile, which is why Ontario Smart Meters are a revenue grab, and not a serious effort to balance the grid load.
As I mentioned last week, customers served by Cornwall Electric do not have to worry about Smart Meters, and Cornwall Electric’s pricing structure does more to encourage conservation than Hydro One’s.
Cornwall Electric will be having a barbecue and energy conservation display next Friday, September 11, from 11:30 am to 1:30 pm, at their Sidney Street office. Even if you’re not lucky enough to be a Cornwall Electric customer, come along anyway to learn how you can save. And if you are a Cornwall Electric customer, bring your current bill and you could win a worthwhile prize.
See you there.
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