Why isn't electricity cheaper?


#823

maybe there is no corresponding gain or maybe it’s a few years down the line. Or it might be in the detailed accounts.
consider an Irish based airline

it hedges (i.e. buys) a load of fuel with a 5 year fuel swap when crude is $50. It does an FX swap to match

first year oil drops to $45. EURUSD does something else

it records this as a accounting loss across the 5 year term, meanwhile Charlie Weston gets to write an article about derivatives being weapons of financial mass destruction

  • apologies to the actual accountants out there feel free to drop some knowledge on us fools

#824

Understood; exactly why I would think they would explain the “loss”, even if it’s to say that they expect to recover it in future years, or have already in past years, or whatever.


#825

Have no special knowledge of these hedges/swaps/whatever, couple of thoughts:
Says they were acquired with the purchase of NIE, so perhaps only a legacy issue (of course, could ask whether they were identified properly when NIE was purchased).
Another exposure to inflation could be via index linked pensions/salaries?


#826

What strikes me as doubly odd is that the UK’s Office for National Statistics (ONS) does not produce regional price indices.

How does anyone know what NI inflation is to calculate a swap based on it?


#827

New electricity supplier enters market.
switcher.ie/blog/gas-electricit … -beenergy/
Not cheaper than current competitors though


#828

Oz home builder makes Tesla PowerWall 2 standard in all new homes:

electrek.co/2017/04/01/tesla-po … -standard/


#829

irishtimes.com/business/ener … -1.3037528


#830

That’s funny.

1kW of solar panels can be bought for about €700, a suitable grid tie inverter for €300, another €100 for the other bits and pieces. A diverter such as the Immersun will cost €400, so Electric Ireland want €4k to put it on your roof!?

Apart from doing this through Electric Ireland it makes good sense.


#831

I always thought that the prices for bikes increased with the cycle-to-work scheme…

irishtimes.com/news/ireland/irish-news/homeowners-could-get-10-000-in-state-aid-for-green-retrofitting-1.3037930


#832

@pyritenation, Yes, that would appear to explain the pricing structure alright.

Just how much hot water does a house need?!!

If the State (or Electric Ireland) were serious about renewable energy then they would allow the excess electricity production to be supplied to the grid rather than dumped into wasteful hot water. A REFIT would be an obvious solution, but a simpler solution again would be Net Metering. It would cost nothing to administer. The ‘low usage standing charge’ already covers the cost of maintaining the grid.

This is just more corporate welfare bullshit.


#833

That article and the measures are more concerned with about giving two fingers to Donald Trump that doing anything ‘green’.

I looked into retro fitting solar hot water panels to our house. When I did the costs, I found I could run an electric shower for 30 min every day for 12 years, and would still not have recouped the cost of the fitting the panels and ancillary bits.


#834

I’m surprised that the sums didn’t work out for solar collectors/water heaters, but similar to this PV scheme the prices got inflated once the grants became available.

For anyone interested in this Electric Ireland proposal the chart below shows what the production data for a 1.44kWp PV scheme in the Dublin region would have looked like between June 2016 and February 2017.

The house is consuming 12 kWhr of electricity per day and the green portion of the chart shows that portion that is met by the PV panels. The red line shows the number of kWhr being diverted to heat water.

And this is the very same production data with Net Metering…

That reduction in Grid electricity consumption can be achieved with a very small investment, but the key is to simply allow Net Metering.


#835

Yeah there is more that a small amount of truth in that. The SEAI grants stipulate that the works be carried out to a certain standard, which adds a lot of cost. New installs are cheaper than retro fitting. We would have been looking at roughly €4k after grants, to install. That is a hell of a lot of electricity.


#836

Or the price goes up because taxes are being paid.


#837

Of course you could instead spend the money on battery storage and not grid-tie for feed-in.


#838

Given that PV generates electricity when the demand/price is low this makes more sense…


#839

The only problem is that (as has been mentioned before on this thread) the standing charge still bites you in the ass here and makes the business case difficult.


#840

After all the expense of solar PV and battery storage surely it isn’t much more work to go off-grid with an oil or gas generator when the batteries are empty?

Maybe this has been discussed here already.


#841

Yeah, Coles linked a micro-CHP gas turbine earlier that looked interesting. You’d have to do the sums on how much you’d need to run it.


#842

Excellent, I now know what to Google.

I’d need oil, what with now being a six-fingered culchie.

cogengreen.com/en/8-340-kw-f … -chp-units

I have used my diesel car before during a power cut, with a power inverter hooked up and the engine running. It was enough to power the TV and a few lights, although I was a bit concerned about the car getting nicked.