Posted by: @toodles

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the suppliers had a scheme whereby the first xxxkWh were at a certain rate and then above that threshold, the cost per unit increased for that billing period.

Yes. That's a rising consumption-related tariff.

One of Ofgem's options in their Consultation is for a Falling Block Tariff.

In that scenario, those who opt for a Zero-Standing-Charge tariff would be charged more for the first number of units,
and then less once they pass the threshold.

As that would penalise the consumers who have the lowest consumption, I'm surprised they've even made the suggestion!

If Block Tariffs are going to be introduced, then I can only see one ethically acceptable option, which has

• Block Tariff applied to a set of half-hour periods on a daily basis
• A Rising Block Tariff, whereby the first set of units below the threshold are cheaper

Those were the assumptions when the SMETS2 Specification was created in 2013/14.

Posted by: @toodles

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and unless they rose above a defined consumption per quarter* might avoid standing charges

That would require each Energy Supplier to write new functionality into their Billing Software...
... and for Ofgem to create a new regulatory mechanism to handle customers who switch Suppliers in the middle of the Quarter.

Whereas the Block Tariff mechanism which exists in each Smart Meter is already a 'standard'.

Posted by: @toodles

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I am uncertain as to how this would be implemented for consumers on pre-payment meters as there is probably no means of time related consumption measurement built into ‘dumb meters’ is there?

Prepayment meters have all the same functionality as any other Smart Meter.

The same internal registers hold consumption data per half-hour,
and the same Block Tariff system would be applied automatically if it were implemented per day.

I have no idea if Ofgem understands that, however.

A Block Tariff can potentially be used as a mechanism to alleviate social pressures.

Imagine these potential situations:

• a patient is to be discharged from hospital, but will need higher room temperatures and medical equipment at home (hoists etc)
• a family has suffered from a life-changing event, such as the unexpected death of the bread-winner

In such circumstances a Social Worker or Occupational Therapist could have the authority to request that the Block Tariff feature be temporarily removed.

As the household gradually aligns itself with the new reality, the Energy Supplier can look at the half-hourly consumption data for days/weeks,
and advise on a more suitable tariff.

Equally it gives the relevant authorities sufficient time to get a storage battery installed, for example,
and effectively move the house to operate off-grid, achieving greater resilience.

The temporary suspension of the block tariff can be viewed as a 'virtual battery' before the actual hardware is present.

@transparent 

In this context @toodles being profligate would be a household which doesn't reduce its energy consumption during the high-demand periods within the tariff.

Thus, if daily block tariffs were implemented, a profligate consumer would use electricity irrespective of whether it brought them into the extra-charge envelope.

This is really bad news and is exactly what the energy companies and numerous others are lobbying for. 

Demand-side Flexibility is the official name - I've spoken about it here before. It is literally the Uberisation of energy with surge pricing. Do not support this. It is leading down really dark roads and so far some other countries are refusing to implement it to any great degree. Surge pricing is a pandoras box for greedy energy companies.

It is not the place of the consumer to cover for the lack of investment private companies imposed on the grid while paying out to shareholders. There's nothing noble in it. You are not saving the planet.

Imagine if Thame water asked you to fish the sewage out of the rivers and pay more for clean water at lunchtime. 

Young families with kids have no choice for example, to not use energy during peak times as do plenty of other consumers.

Imagine coming home from a zero hours contract job tired and stressed to collect the kids, feed them and do homework, watch TV or Playstation bath or shower before bedtime. Then dirty clothes get thrown in the machine for school tomorrow because 7 year olds play football in mud and little girls spill paint and you don't own multiple sets of clothes. Dad comes home at the same time from a building job, tired, hungry and aching to sit in a hot bath... But hey, your electricity is being charged £1 per Kwh between 4pm and 7pm and you already struggle to pay your bills on the national minimum wage... 

We already pay the highest charges in Europe please don't accept any surge pricing nonsense. 

I also commented before in other threads specifically on different tariff regimes - another part of my work looking at markets in Europe alongside grids. Spain manages to have various levels of payment and exceptions to rules to cover energy poverty and low income and banded by consumption so there's various other options possible. BUT we must keep the low waged, sick and elderly in mind. 

But... please don't suggest energy support is included in benefits or it will get axed at the first opportunity. Britain is vicious about these things in ways no other country is. 🙁  

@transparent the state has no money to cover the upfront cost of installing batteries. There is little chance of central and local government taking on more debt right now. The social housing providers also don't have the money, nor can housing associations borrow it as they are already forecast to have insufficient income to cover loan repayments currently in the coming years due to higher interest rates.

The only way to get batteries into social housing would be via the private sector funding and owning them and taking the majority of the income.

The government has already reduced the requirements for getting a grant for a heat pump under the boiler upgrade scheme so it is no longer a requirement to install insulation if required. I can't see the government introducing red tape to oblige private landlords to install batteries, the direction of travel is the other way. I can't imagine a battery ever being a prerequisite for a heat pump grant for jo public, the government had to dramatically increase the grant just to get a decent traction in basic heat pump installations.

I think you come up with a lot a great ideas, I am less convinced they are grounded in what is achievable, but perhaps pushing the boundaries is a good thing and what you are trying to do. I am wary if you push too hard your voice will be ignored? 

The government are quite happy for the network operators to upgrade the grid as it doesn't appear on the national debt. One of the challenges is who pays with all these things so there will be a fudge and the end solution will be a compromise I suspect.