
So, we know that energy prices are going to rise again and that hurts. There's nothing much we can do about that, the market will do what the market will do. Yes, you can switch suppliers constantly trying to chase the lowest tariffs but there comes a time when there's nowhere left to go. So what to do? Simply put the best thing you can do to lower your bills is use less energy. Sounds easy doesn't it... hmmm. Before we can start saving we need to know how much we're using and how much it costs.
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Have you ever really paid much attention to the explanation of the charges on the back of your bill? Me neither, once the shock of seeing the big number on the front has passed I lose the will to read any more. But now is the time to get better aquainted with your bill, get into your head how much electricity costs, how much you use, and attach it to a real world example like a light bulb burning away.
So I gritted my teeth, turned over the bill and read all the blurb about units, kWhs, day and night rates, standing charges, blah blah blah. What I wanted to do was to distill the information into one easy to understand number - how much does one unit of electricity actually cost me? This is relatively easy to do. Add up the total number of units used (usually listed at two different rates for night and day) and divide by the total cost of the bill (assuming it's for electricity only), this gives us the actual amount a unit of electricity costs us. This figure will average out the different rates, standing charges etc. Remember to include the 5% VAT charge. The figures for my most recent bill can be seen below.
I used 1114 units on day rate costing £107.81 (9.678p per unit)
I used 408 units on night rate costing £16.50 (4.045p per unit)
Standing charge of £17.05 (14.45p/day for 118 days)
Adding that all up I've used 1522 units costing £141.36+VAT@5%= £148.43 Therefore 1 unit actually costs 9.75 pence. This is the headline figure we need to keep in mind from now on.
1 unit = 1kWh which costs me 9.75 pence.
So lets put that into real world terms using something we can all understand, a 60watt light bulb. As the name suggests it will consume 60watts of power. Now, all our calculations are based on kWh so we'll convert this to match.
60watts = .06kW (60/1000=0.06)
Now we know the light bulb will consume 0.06kW and one hour's usage will cost 0.06*9.75=0.585 pence. Not very much in the great scheme of things. Leaving the light bulb on for 24 hours will cost me 0.585*24= 14.04pence/day or £4.35/month or £51/year... ouch. Of course you'd never leave a light bulb on 24 hours a day, would you? No, you'd switch it off when light was not needed.
But what about all those things around the house that you do leave on 24 hours a day? I'm not talking about the essentials like a fridge/freezer I'm talking about the TV/Hi-Fi/Computer/Consoles/Laptop/ etc. When you analyse the amount of energy these things consume (even when apparently switched off) it's enough to make your hair curl. I'll follow up this post with real world measurements of power consumption of devices in standby mode and real, actual costs for each item. To be continued...
Update: Second post on this subject can be found here.