Smart Meters
I noticed an article of note in the Globe & Mail today worth mentioning...
The regulator of Ontario's electricity industry says consumers can expect to pay $3 to $4 a month until the end of the decade for a so-called smart meter that would allow them to track energy use on an hour-by-hour basis. But the Ontario Energy Board added the new meters would give electricity users the ability to cut their monthly bills by shifting usage to periods when rates are lower...Energy Minister Dwight Duncan has pushed for new meters that would reward consumers who cut their electricity demand at peak times because this would reduce the need for the government to build costly new generation plants. The consumer would be charged according to when power is used, with higher prices prevailing during peak times...The presumption -- bolstered by experience in other countries -- is that the devices will quickly pay for themselves through reduced power usage.
Huh, promoting energy conservation through awareness of usage and thus shifting demand. Interesting idea.
The regulator of Ontario's electricity industry says consumers can expect to pay $3 to $4 a month until the end of the decade for a so-called smart meter that would allow them to track energy use on an hour-by-hour basis. But the Ontario Energy Board added the new meters would give electricity users the ability to cut their monthly bills by shifting usage to periods when rates are lower...Energy Minister Dwight Duncan has pushed for new meters that would reward consumers who cut their electricity demand at peak times because this would reduce the need for the government to build costly new generation plants. The consumer would be charged according to when power is used, with higher prices prevailing during peak times...The presumption -- bolstered by experience in other countries -- is that the devices will quickly pay for themselves through reduced power usage.
Huh, promoting energy conservation through awareness of usage and thus shifting demand. Interesting idea.
3 Comments. Add your comments!
I think with these meters you can actually go online and check your energy consumption.
I would pay for that!
By Scott, at 9:54 AM, November 11, 2004
This post has been removed by the author.
By Craig, at 2:47 PM, December 07, 2004
Good idea?
It will not make sense for the majority of residential consumers!
Why? For low volume consumers the amount of power required to be shifted and the expected savings from shifting that load will most likely not recover the cost of the meter!
DO THE MATH. Less than 1/2 of your utility bill is for electricity itself but rather for transmission & distribution costs, the cost of supporting the Independent Market Operator, and paying back the stranded debt. The average price spread between on -peak and off-peak power in 2003 was only $24.88 per MWh or 2.488 cents per kWh.
Using 2003 actual pricing, an average Ontario consumer would need to shift 17% of their peak power (7am to 10 pm EST Monday to Friday)usage to off-peak hours to cover the metering cost. (FYI The price spread in 2004 through the first 10 months has been even lower at $21.87 per MWh or 2.187 cents per kWh.)
What should be done? The 80/20 rule should be implemented. Only install smart meters where monthly volumes are high enough to ensure a more reasonable payback for the individual.
Also remember that if successful the spread between peak and off-peak prices will decline as more and more load is shifted; thereby arbitraging way any price incentive. By installing a smaller percentage of meters an equilibrium point will be reached where there is still some positive price spread between peak and off-peak prices sufficient to mantain load shifting and where those with meters can reasonably expect to breakeven or lower their total costs.
By Craig, at 2:49 PM, December 07, 2004
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