higher cost of electricity

22 Oct

london 10.03am 10C sunny monday 2018

well, i finally took the plunge and changed my electricity provider and commit to a higher tariff (£21.85 a month) fixed for a year. the rate i pay is 20.5p/kwh. no standing charge.

it is quite a big jump from my old £17 a month direct debit. so what i normally pay £208 becomes £261 a year for the same 1275kwh usage. almost £50 jump 33% rise.

i have been hearing of them saying electricity charges will be going up , to pay for the smart meters, to pay for the rising oil price, to pay for the green energy subsidy… and here it is , finally coming to me. i have managed in the past to just one step ahead of them and grabbed a low fixed rate before the increase, but this year i missed it. but also cheap rates are very rare now. even the smaller energy companies are not able to undercut the big 6 by much this year. 

just as well i have been reducing my energy consumption instead of just chasing cheap tariffs, (though i have noticed my usage have been inching up again by about 100kwh extra last year). but even with that increase it is low so that even this big jump comes down to only £260 a year. it is still cheaper than a annual gym membership. (it is not that i belong to a gym anymore. that is one cost that is up to us to take up or leave, unlike electricity which is a necessity). and not much more than my broadband/phone tariff. (now that one we can take up or leave, but to me, that i find i really cannot do without.)

i am hoping that i reduce my electricity consumption even more the coming year and reduce the actual amount i have to pay. this new contract do not have a standing charge. so that is good. it would mean any reduction of usage will translate to money saved.

ah well, that is life, isn’t it? some things the price goes up, other things it goes down. and it all comes to what we chose to use. for eg, i hear that olive oil will be going up a lot but i dont use olive oil much. in fact not at all, so that price increase wont affect me. and this goes for gas as well, if it goes up i dont get affected at all. 

correction. about the gas increase, i should say i am not affected directly. i am sure indirectly i am affected, as prices rises when those companies who are affected raise their prices. but still, i might not use their products so i can chose if i am affected or not. correction again… i noticed that my new electriicty provider uses gas to generate the electricity that they sell to me. 

following fuels:
% of total
Electricity Supplied Average for the UK
(for comparison) the second figure is average for uk
Coal 13.5%  8.5%
Natural Gas 41.4% 44.1%
Nuclear 11.3% 21.0%
Renewables 29.4% 24.2%
Other 4.4% 2.2%
Total 100% 100

so from the look of it, 41% of the electricity that i get from them is from natural gas. what is notable is that they are not using oil… and they are using coal!

indirectly i suppose we are all affected, but we can chose to move to another cheaper product of the same type, but without a well known brand. or like the supermarkets’ own brand. the quality may change and be worst, of course, but when it is a basic household item, like laundry soap, or washingup liquid, i dont think it is very important. they will all do their job well. 

 

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