{"id":345593,"date":"2024-10-06T09:36:16","date_gmt":"2024-10-06T07:36:16","guid":{"rendered":"https:\/\/climatescience.press\/?p=345593"},"modified":"2024-10-06T09:36:18","modified_gmt":"2024-10-06T07:36:18","slug":"why-are-well-off-ev-owners-charged-half-as-much-as-poor-pensioners-for-off-peak-electricity","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=345593","title":{"rendered":"Why Are Well-Off EV Owners Charged Half as Much as Poor Pensioners for Off-Peak Electricity?"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

From The Daily Sceptic<\/a><\/p>\n\n\n\n

By\u00a0Nick Rendell<\/a><\/p>\n\n\n\n

\u201cThe surprise is not whether the dog plays the piano well or poorly but that it plays it at all!\u201d Dr. Johnson might well have applied this aphorism to Rachel Reeves\u2019s cancellation of the pensioner\u2019s winter fuel allowance. However, in this instance the shock was both that the allowance was cancelled and <\/em>that it was handled so badly.<\/p>\n\n\n\n

As a general rule I\u2019m fine with anything that removes the state from people\u2019s lives. However, the \u2018optics\u2019 of this announcement were shockingly dreadful. Why wasn\u2019t it wrapped up with a programme of initiatives, such as confirmation that the triple lock would be retained or alongside details of the forthcoming increase in pensions?<\/p>\n\n\n\n

In any case, here is an even greater mystery: why are people who are sat shivering at home in poorly insulated, under-heated social housing paying about twice as much per kWh for off-peak electricity as EV owners, swanning about in their \u00a365,000 Teslas?<\/p>\n\n\n\n

You must remember the biblical parable about the widow\u2019s mite. At the temple one day the widow was only able to afford a small charitable donation. She gave her two pennies then quietly slipped away. Meanwhile the rich man made a great show of his large donation, despite it being a sum that he could easily afford.<\/p>\n\n\n\n

Well, something like that is happening today in every parish in the country. The widows in this case are mainly the poor little old ladies living in post-War houses and flats with night-storage heaters. Remarkably, there are about 1.4 million homes still using night-storage heaters<\/a>. The rich men in my parallel parable are the 1.2 million EV drivers, a group not known for understating their contribution to the selfless pursuit of Net Zero, especially when that contribution is funded by subsidies from general taxation and additional charges on everyone else\u2019s energy bills.<\/p>\n\n\n\n

Why do I contrast the two groups \u2013 the 1.4 million dwellers of sub-optimal housing and 1.2 million drivers of expensive EVs? Because, in many ways they\u2019re comparable, at least in their desire for cheap, off-peak electricity. Surely, you might think, isn\u2019t this where \u2018smart meters\u2019 come in? Isn\u2019t the idea that they can differentiate between user groups to provide more tailored tariffs? Alas, the \u00a320bn or so being spent on \u2018smart meters\u2019 doesn\u2019t seem to have delivered something quite that smart.<\/p>\n\n\n\n

As a kid I remember my dad had a Ford Sierra in \u2018burnished gold\u2019. Today, like so much else, the choice of a car\u2019s paint finish has been inverted. Long gone are the days when Henry Ford could say, \u201cyou can have any colour you like providing it\u2019s black\u201d. Elon Musk\u2019s customers now seem to say, \u201cpaint it any colour you like but to us we will always see it as \u2018burnished virtue\u201d.<\/p>\n\n\n\n

If our widow with three night-storage heaters could buy off-peak electricity at the same price as EV drivers she\u2019d save about \u00a3500 per year \u2013 far more than the amount she\u2019s missing out on if she\u2019s no longer collecting the winter fuel allowance.<\/p>\n\n\n\n

You may never have given it a moment\u2019s thought, so perhaps it\u2019ll come as a surprise to learn that a single night-storage heater uses about the same amount of electricity as an EV covering about 11,000 miles a year. A study quoted in This is Money<\/em><\/a> suggested that the average number of miles covered by an EV was, at 8,292, slightly lower than the distance covered by the average combustion car. So, for most EV drivers, they\u2019re using less electricity than a single night-storage heater consumes. But of course, while our EV driving eco-warriors tend only to have one EV, our widows have three or four night-storage heaters. While our EV champion is spending less than \u00a3200 a year on the 2,750 kWhs of off-peak electricity at 7p per kWh to propel his car 11,000 miles, our widows are getting billed about \u00a3350, 75% more, for each of their night-storage heaters.<\/p>\n\n\n\n

But it doesn\u2019t have to work this way. The market for EV drivers is pretty competitive with prices in the range of 6.9p to 10p per kWh, as illustrated on the right hand side of the table, nabbed from Martin Lewis\u2019 MoneySavingExpert<\/a> <\/em>site and reproduced in Figure 1.<\/p>\n\n\n\n

\"\"
Figure 1<\/figcaption><\/figure>\n\n\n\n

Conversely, as can also be seen in Figure 1, the kWh prices for conventional Economy 7, or \u201coff-peak (night) rate\u201d electricity ranges from 10.95p to 14.85p, in some cases twice as expensive.<\/p>\n\n\n\n

Is there something special about \u2018EV destined\u2019 off-peak electricity in comparison to Economy-7 electricity ear-marked for our widow\u2019s night-storage heaters? Of course not. There\u2019s absolutely no reason why the electricity companies shouldn\u2019t offer the same price to Economy-7 users as EV users. In fact, Dale Vince\u2019s Ecotricity appears to do just that, well done Dale. So, why doesn\u2019t British Gas or EON do the same?<\/p>\n\n\n\n

In general I\u2019m not in favour of regulators. We only have regulators when markets don\u2019t work properly. Self-evidently the electricity market doesn\u2019t work properly. But if we are going to have a regulator why hasn\u2019t it stepped in here and required the energy companies to follow Dale Vince\u2019s lead and not discriminate against the widows and their night-storage heaters in favour of rich men in EVs?<\/p>\n\n\n\n

Even more pertinently, why doesn\u2019t Ed Milliband flag up the potential savings if all night-storage heater users switched to Ecotricity?<\/p>\n\n\n\n

Why doesn\u2019t Milliband go one step further and encourage our widows to install night-storage heaters? A large-scale national scheme could easily get the installed price down to about \u00a3300 for a state-of-the-art unit, about the same cost as the much lamented winter fuel allowance. We\u2019re not short of available night-time electricity which could be priced lower than gas and directly substitute a renewable energy source for a fossil fuel.<\/p>\n\n\n\n

Of course, Milliband might argue that rather than messing about with night-storage heaters he wants to install millions of heat pumps. But look at it from the widow\u2019s point of view. If she\u2019s only expecting to live another five or 10 years she\u2019d be mad to squander the money she\u2019s been squirrelling away for her kids on a \u00a325,000 heat-pump installation that would never pay back during her lifetime (if, indeed, they ever pay back during their own lifetime).<\/p>\n\n\n\n

Why not go for the low hanging fruit and get night-storage heaters in thousands of homes? Oh, and while we\u2019re at it we could tell the widow that her contribution to \u2018climate change\u2019 (assuming she gives a damn) is rather more valuable than that donated by the rich man who just razzed by in his Y-class Tesla. <\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cThe surprise is not whether the dog plays the piano well or poorly but that it plays it at all!\u201d Dr. Johnson might well have applied this aphorism to Rachel Reeves\u2019s cancellation of the pensioner\u2019s winter fuel allowance. However, in this instance the shock was both that the allowance was cancelled and that it was handled so badly.<\/p>\n","protected":false},"author":121246920,"featured_media":345595,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691820942,691821693,691819526,691822352,691820065,691830809,691830810],"class_list":{"0":"post-345593","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-dale-vince","9":"tag-ed-miliband","10":"tag-electric-car","11":"tag-electric-vehicle-ev","12":"tag-ofgem","13":"tag-pensioners","14":"tag-winter-fuel-payment","16":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/10\/0Screenshot-2024-10-04-194925.jpeg?fit=1601%2C886&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1rU5","jetpack-related-posts":[{"id":361947,"url":"https:\/\/climatescience.press\/?p=361947","url_meta":{"origin":345593,"position":0},"title":"\u201cIt\u2019s 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