Last night I was woken by a thought - well, that's not correct; I was mainly woken by pins and needles caused by the dog sleeping on my feet! As I wriggled my toes and tried to get the blood flowing again (while ignoring the growls from the dog), I was struck by the thought of energy prices and how they were likely to fall. Wholesale energy prices are falling - some would say plummetting - so I'm guessing that OFGEM will lower the cap sooner rather than later.
Alongside the appreciation that the currently dire situation is likely to change, I remembered something mentioned when I was studying. An old professor asked us to consider how much of our utility bill comprised the cost of the mechanisms employed by calculating our bill. He mentioned that once telephone lines are installed, the outgoings for telephony companies are maintenance and installation of new lines and staff. As such, everything but a small portion of our bills was free and clear profit after paying off the initial investment in infrastructure. He suggested that roughly half of the phone bill was to cover the generation of the bills themselves: the recording of call duration and destination and the postage of those bills to us. Of course, I'm guessing that's changed in these times of online accounts, with that portion of the bill significantly reduced. Have these efficiencies made their way to us as decreasing bills?
I'm reminded of the boon that social media is to the intelligence services - instead of dedicating personnel to track our movements; we do it ourselves.
This reduction was probably the same for the other utilities, such as gas or electricity (let's pop them under the umbrella of energy utilities). I am trying to remember the last time we had any of our meters read - but it was certainly a fair few years ago - thus, the staffing costs have been reduced. This reduction in the number of meter readers has been thanks to smart meters and consumers providing their own readings.
But that's odd, isn't it? Instead of someone coming each quarter to check how much energy has been used in a property and a bill generated from that figure, we now provide that data monthly - or more frequently when we have a smart meter. Now we can tell how much energy we've used and be charged the going rate for that energy at that particular time. December is cold, and the energy price rises; we'll pay more. January is even colder, but energy prices have dropped - do we pay less...? The delay in OFGEM dropping their cap means that we don't - though the utility companies are paying less for the energy they provide.
So what to do? I'm pondering how well I should report my energy consumption. If the cap is high - is it better to report reduced usage as a consumer that provides their readings...? When the cap is lower, I can give increased figures to get me back up to the actual amount. Presumably, that would be far better than relying on the estimated figures used by energy companies - at least for me as a consumer. It does smack of being a gamble, though; who is to say when prices will fall?
