Smarter Energy Pricing - Electricity Is Too Cheap

Most people are aware of ways to reduce their energy consumption in the home. From what I have read, there hasn't been a great reduction in energy over the past few years though. I think there are a couple of main reasons there hasn't been a big change in the way we consume energy.

Firstly, in the Western world we aren't feeling the direct impact of climate change. If we were actually starving or dieing of thirst, we might be a bit keener to turn lights off and waste less water.

Secondly, our energy really doesn't cost that much. I'd estimate my energy bills are about 1/30th of my income at the moment. It is a cost that I can afford, and making small changes in my consumption won't save me a whole lot of money per year.

So...my big idea to save the earth is called Smarter Energy Pricing (SEP) - the government love acronyms. The first step would be to work out how much energy an average person would need, if they put all the common energy saving techniques into practice. We will call this Energy Per Person (EPP).

The number of people per household can be worked out from the electoral role, or census, I'm sure the government must have pretty accurate figures on this.

Then, the energy used per house would be monitored by energy companies, they already do this with the current meters. All the energy used up to the EPP would be charged at the current rates. Any energy used over the EPP would be charged at something ridiculously high like 5 or 10 times the normal rate.

The extra money charged at rates over the EPP would be taken by the government as tax, and invested in new greener forms of energy.

This would be sure to make everyone cut their energy to a sensible level. There would be means tested grants for people to install energy saving bulbs, fit more efficient boilers, and insulate their homes. The current government grant schemes in this area could be extended.

I'm sure if this was put into practice the reduction in energy consumption would allow a coal fired power station to be closed, or taken to a lower capacity.

Basically, electricity is too cheap, and people who use lots should have to pay lots. So you want a 26 bulb chandelier? Fine, but you're going to pay through the nose for it.

So, is this a work of genius, or big brother gone mad? I'd be happy to hear your views. This is the first in a series of rants about common sense ways we can reduce our energy consumption, without waiting for new technology to save us. If you would like to add to the series, join the team of writers.

Published - Wed 28th Oct 2009 21:30:09