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Real Time Information and Transaction Specialist

Rex has king hit the big question ! What he misses though, perhaps, is whether there’s flexibility (for use at other times) and if (1) the tariff {network cost recovery} facilitates that, and (2) if the energy retailer facilitates saving by the consumer. Peak (or for that matter offpeak) ToU [Time of Use] tariffs are an historical construct from when (peak) supply capacity and (peak) network capacity were tightly coupled. That is no longer the case. They are now decoupled and the greater the RTS the greater the separation! We should be managing network pricing COMPLETELY INDEPENDENTLY from energy prices. The best way to do that is - like nearly every other digitalised product/service - is via a subscription. For networks we should be subscribing for our reasonable (essential or guaranteed) capacity be that import or export AND receive a signal from the network when there’s spare capacity available we can use for our non-essential “flexible” load/demand. If there’s no congestion that extra utilisation should be free (a shared Community Commons) resource - when there’s congestion (lack of capacity) we receive a signal* to return to our subscription level. Really it’s no different to having a binge on an internet streaming service! Similarly our retailers could/should offer a (flat) rate for that essential base use, and dynamic charges for the flexible useage so consumers can drive “Energy Cost Efficiency”. The trouble is - consumer savings means a loss of retailer profits! With our big three gentailers being public companies they hate that with a passion! That’s why it’s time for the “Consumers’ Grid” * DOE / Dynamic Operating Envelopes Other recent and relevant posts on tariffs https://lnkd.in/g-z3Bz2b https://lnkd.in/gF6ijyJ2 Dan Bolger Daniel Mercer Lynne Gallagher Angela Macdonald-Smith John Cleland Mike Cole Guy Chalkley Colin Crisafulli Marc England Rob Amphlett Lewis Nick Black

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Introducing our newest social scientist Dr Rex Martin. Rex is interested in asking the question "What do people need?" Not what does the system need. “Energy tariffs foreground the priorities of the system. Of course, the system needs to function well but what social scientists are trying to do is invert the system to make it people centric. For example, some people aren’t able to rearrange their lives around tariffs. The family peak is between 5 – 7 pm," said Rex. "We wouldn’t penalise families for trying to feed and bathe small children at this time, and yet this is peak time for energy use, which means that often times it is the most expensive time of day to use energy in the home. This doesn’t support families,” said Rex. Read more about Rex and his research here: https://lnkd.in/gdzNmWfE #nonenergyfeedback #sensoryfeedback #socialfeedback #materialfeedback #systemicfeedback

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Tim Ryan

Real Time Information and Transaction Specialist

9 个月
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So, would your subscribed amount reflect the amount of physical network capacity per customer? My understanding is that this is around 3kW. So, when there is congestion, the DOE system will send a signal to all customers to reduce their consumption to this level? But how will they respond to this signal? Will every device - toaster, oven, kettle etc - be able to be controlled autonomously? That would be fanciful, surely.

Peter Kilby

Senior Grid Transformation Engineer

9 个月

You’re still a few moves ahead of the rest of us on tariffs Tim, but I wonder if it is just a coincidence that one of the most electrified countries in the world also apparently has the majority of its customers on spot exposed hourly electricity tariffs? https://www.ssb.no/en/statbank/table/09364/ How do they provide a social safety net without dampening price signals? How do they make it simple for customers while still enabling demand management solutions that maximise value? How do they provide energy usage insights to customers without overwhelming them in their bills? Hopefully we won’t start from scratch to answer these sorts of questions unnecessarily… https://youtu.be/52W4SoC8iis

Navin Bhardwaj

Manager, Green Hydrogen Pilot Plant

9 个月

This will need the vision to sacrifice near term revenues in favour of longer term energy cost efficiency. Is it the AER that should get the ball rolling on this one?

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Sam Elder

Energy Futures: Insight | Strategy & Transformation | Innovation | Facilitation

9 个月

Tim - reminds me of Laura Sandys CBE article below from a couple of years back. Are you thinking this still stacks up, or do you see / is what you’re proposing an iteration on this? (I really like the concept, and we’re developing and trialing a ‘capacity bands’ mechanism broadly along these lines through our ResiFlex project).

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