National Grid charging model

[Guest Alphonsox]

Interesting article in the paper this morning regarding how we pay for the National Grid. Apparently us rich types who have put solar PV on our roofs aren't paying enough. I must admit I didn't know the cost of the National Grid worked out at £140 per customer so they may have a point.

http://www.telegraph.co.uk/news/2016/05/29/households-could-be-charged-annual-insurance-premium-for-access/

[SteamyTea]

This highlights the problem of subsidies.

I have often thought it is wrong to pay people to add extra load on the grid, but I suspect that it goes back to the old 'nationalised' National Grid.  It was considered a market failure, so the cost was covered by the state.  Since privatisation this has changed and it is very easy to charge to generation companies for the service as there are not too many of them.  The administration costs of charging 1 million plus private generators is a different matter.

I think I currently pay £0.18/day for my meter rental, so that is about £65/year.  If I am also paying £140/year to the National Grid, that is a total of £205/year.  This is equivalent to about 1,367 kWh/year, or about a third of my usage.  I could buy 200 lt of diesel (2,000 kWh/year) and generate my own electricity and thermal energy (circa 1,200 kWh/year), so getting close to parity before capital expenditure and maintenance to go off grid.  But a lot of faff to do so.

Edited May 29, 2016 by SteamyTea