Energy Local The Guide - Part 6: Electricity price

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Electricity prices

If you are a member of an Energy Local Club, then you will be receiving electricity from a local renewable source of energy (hydro, solar, wind, etc).

At sometimes of day, it will be possible to match all of your electricity use to electricity that is being generated by the renewable energy generator at your Club. At other times your electricity use will be bigger than your share of the renewable energy and you will buy this extra electricity from an energy supplier.

This extra electricity will cost different amounts at different times. This is indicative of the Time of Use (TOUT) that will be offered for Energy Local. The exact prices will be confirmed at the time of switching and will be in line with the fixed tariffs offered at the time.

Your electricity prices

Below, is an example graph of a TOUT and a renewable power rate (also known as match price).

Example of Electricity Prices EN

 

So how much will I end up paying?
You will use a mixture of electricity that can be matched to the renewable source, and electricity charged at different prices at different times of day. Below are some examples (based on the graph above) of how that would work during two different times of day and what your use might look like at the end of the month.

Your Friday Evening Use – Renewable Power plus extra electricity at Evening Peak price
It’s Friday evening between 5pm and 6pm, and you’re at home, using electricity to cook dinner and watch TV. During that hour you use 2 kWh of electricity.

  • 1 kWh of this is matched to your share of the renewable power and is charged on the ‘match’ price of e.g. 8.5p/kWh
  • The extra 1 kWh from the energy supplier is charged on the Evening Peak price of 17p/kWh.

The total cost of the electricity you use is 25.5 pence. You’ve used 1 kWh of cheap renewable power and 1 kWh of expensive Evening Peak power so overall the cost of your electricity for this time is similar to typical flat rate prices.

Your Sunday Afternoon Use – Renewable Power plus extra electricity at the Middle of the Day price
It’s Sunday afternoon between 1 and 2pm and you’re at home, using electricity to cook a big family dinner and run the washing machine. During that hour you use 2 kWh of electricity.

  • 1 kWh of this is matched to your share of the renewable power and is charged on the ‘match’ price of e.g. 8.5p/kWh
  • The other 1 kWh from the energy supplier is charged on the Middle of the Day price of 13p/kWh.

The total cost of the electricity you use is 21.5 pence. You’ve used cheap renewable power and cheaper Middle of the Day power so you have saved money compared to typical flat rate prices.

How to save the most
We expect everybody who is part of Energy Local Club will save money on their electricity bill. To achieve the biggest savings, remember these three key points:

  • Do the things you can to be more energy efficient
  • Match your electricity use to times when your share of the local generation is likely to be bigger.
  • Reduce the amount of electricity you use at peak times.

 

Energy Local The Guide - Part 1: How it works

Energy Local The Guide - Part 2: Your share of the solar electricity generated

Energy Local The Guide - Part 2: Your share of the hydro electricity generated

Energy Local The Guide - Part 3: Project Timescales

Energy Local The Guide - Part 4: Tips for your washing machine and tumble dryer

Energy Local The Guide - Part 5: Upgrading Your Lighting

Energy Local The Guide - Energy Efficiency