How to help improve energy management without a dedicated energy manager Simple Energy Management through Utility Bills 17 th November 2015

Welcome! What does your energy bill tell you? How do you know it is right? How can bills be used to target & monitor change? A programme delivered by Zero Waste Scotland

“What does my bill tell me?”

What does you bill tell you? How much money your energy consumption is costing you: Energy consumption Tariff structure Energy rates Other charges

Sample ChargeskWh Used Pence per kWh Total charge (£) All nights9, , Summer day26, , All weekend13, , Site charge Agreed supply capacity charge at £2.15 for 31 days Agreed supply capacity excess 34.0 at £2.15 for 31 days Other charges Reactive charge for April 20% 0.32 Climate change levy48, VAT at 20% 1, Total including VAT 8, Electricity invoice New charges – 1 May to 31 May

Terms on your electricity bill (A) Kilowatt-hour (kWh). Unit of electric energy equal to 1 kW of power supplied from an electric circuit for one hour Unit rate (p/kWh). Higher rates for on-peak (day and weekend) and lower rates for off-peak times (night) HH metered supply. Meter electricity consumption data every half hour (HH) Charges Tariff structure – agreed variable and fixed charges Variable charges – energy use, peak capacity, use of system, taxes Fixed charges – connection

Terms on your electricity bill (B) Transmission Use of System (TUoS) Charge for the cost of using the National Electricity Transmission System (NETS) that delivers electricity from power stations to regional transmission networks Calculated based on site demand during peak periods called triads Distributed Use of System (DUoS) Charge for using the regional transmission network between NETS and your building Calculated based on volume of electricity consumed on site during times of peak demand, mid demand, and off-peak demand

Terms on your electricity bill (C) DUoS charges include: Unit rates (p/kWh). 3 time periods: Red (peak), Amber (mid peak), and Green (off-peak) Supply capacity charge. Based on “peak” energy use during a specific period. Charge is paid to the grid operator to have the capacity available to meet your peak demand, regardless of when it occurs Supply capacity excess charge. If the agreed supply capacity is exceeded, a higher capacity charge is paid than the regular rate Site charge. Fixed or standing charge due per day and per meter whether or not electricity is used on premises

Terms on your electricity bill (D) Reactive charge. Electrical systems use power to perform business or manufacturing processes Some equipment has reactive power requirements Inductive devices – motors, welding sets, induction heaters, fluorescent lights Reactive power charges normally indicate poor Power Factor (PF) Power factor PF proportion of current in an AC circuit used for its task PF 0.8 means 80% of current is used effectively by equipment Settlement Charges Fee for half hourly data service; HH data charges can also apply

Terms on your electricity bill (D) Climate change levy (CCL). Tax on the supply of energy products (electricity, gas, coal), set up to encourage energy efficiency improvements; currently set at p/kWh for electricity and p/kWh for gas – goes up in April each year

Sample Reading date Reading this time Reading last time Units Used Correction factor Adjusted units (m 3 ) Calorific value KWh 01/06/ C C Gas invoice Bill period from 4 May to 1 June Business unrestricted £ p Unrestricted units kWh at 2.687p3, Monthly charge CCL kWh at p VAT20% on charges of 3, Total this invoice4,742.08

Terms on your gas bill (A) Kilowatt-hour (kWh). Unit of energy equal to 1 kW of energy supplied from gas mains network for one hour Reading this time, C. C is for meter reading supplied by customer, E is for estimate Correction factor. Factor to convert gas units into kilowatt hours (kWh). Standard across all suppliers ( ) Calorific value (CV). Amount of energy contained in gas, or heat generated when a known volume of gas is combusted (~39.4 MJ/m 3 )

Terms on your gas bill (B) Unrestricted units. Where there is an ‘unrestricted’ meter, there will be one single reading. Monthly charge. Fixed or standing charge due per day and per meter whether or not electricity or gas is used on premises Climate change levy (CCL). Tax on the supply of energy products (electricity, gas, coal), set up to encourage energy efficiency improvements

“How do I know it is right?”

How do you know it is right? Actual or Estimated meter readings? Estimated meter readings are often higher than actual energy use. Every month, read your meters (electricity, gas, other energy, as well as water) and provide this information to your suppliers Check supply capacity excess. If your organisation exceeds the agreed peak capacity, the additional capacity will be charged at a higher rate. Update agreed capacity to peak capacity Check tariff. Check that your organisation is on the right tariff (electricity, gas) by checking online information from your supplier (or telephoning); compare rates with other buildings or suppliers to check costs are reasonable – base on all in rate

How do you know it is right? Check Climate change levy (CCL). Excluded or exempt from CCL? Exclusions: electricity & gas for domestic use or charities for non-business purposes Exemptions: supplies to good quality CHP schemes Check reactive power. Some distribution companies base their charge for reactive power on an assumed Power Factor. Find out if you can exchange your meter for one that measures reactive power if this is the case.

How is the bill calculated? 1.Billed units are calculated in kWh for the period of use for on- peak and off-peak times (day, night, weekend) 2.Multiply billed units by respective prices (i.e. £/kWh for period of use). Time periods and prices are stated in contract 3.Total consumption is sum of all billed units in the period of use 4.Multiply agreed peak capacity by agreed capacity rate (£/kVA) 5.Multiply excess peak capacity multiplied excess capacity rate (£/kVA) 6.Multiply reactive billed units by price (£/kvar) 7.Multiply billed number of units (kWh) by the CCL rate (£/kWh) 8.Add VAT at 20% unless exemptions apply 9.Sum to find total

How is the bill calculated? Example NightDayWeekend Energy used last month (kWh) Charge (£ per kWh)x0.105x0.135x0.155 Energy charge (£) AgreedExcess Capacity charge (kVA) Charge (£ for 31 days)x2.150x Energy used last month (kWh) CCLx Standing charge (£/month) Reactive charge 0.32

How is the bill calculated? Example Night charge Day charge Weekend charge Agreed capacity charge Excess capacity charge CCL Standing charge Reactive charge Subtotal VAT at 20% Total

ElectricityBill DatesUse (kWh)Cost FromToTotalp/kWhTotalPF MD (kVA) Tonnes of CO 2 Supply capacit y kVA Capacity charge £/kVA Settlement charges Standing chargesCCL p/kWh total Day30-Jun31-Jul 253, £22, £1.37£42.75£27.070TotalkWh Night30-Jun31-Jul 65, £4, £ 1,165 £ - £ 28, , Day31-Jul31-Aug 258, £23, £1.37£42.75£27.070TotalkWh Night31-Jul31-Aug 78, £5, £1,165 £ - £ 30, , Day31-Aug30-Sep 232, £21, £1.37£42.75£27.070TotalkWh Night31-Aug30-Sep 67, £ 4, £1,165 £ - £ 26, , Day30-Sep31-Oct 229, £19, £0.05£61.540TotalkWh Night30-Sep31-Oct 73, £6, £1,194 £ - £ 27, , Day31-Oct30-Nov 229, £19, £0.05£59.960TotalkWh Night31-Oct30-Nov 64, £ 5, £1,155 £ - £ 26, , Day30-Nov31-Dec 218, £18, £0.05£61.540TotalkWh Night30-Nov31-Dec 67, £5, £1,194 £ - £ 25, , Total 3,652,226 £ £655, ,985 £12,932 £ 327,701 Annual 6,275,656 £ 563, £ 563,092 Sample analysis of bill data – change of supplier and rates

Alternative tariffs Single rate Block rate Off-peak Time of use (part of DUoS structure) Feed-in tariff Reduce your costs by selecting appropriate tariff Under some tariffs, Use of System (UoS) rates change depending on time of day UoS rates are generally lower between midnight and 7am RateMonday to FridayWeekends RedHigh16: :30 AmberMedium08: :30 and 19: :30 16: :00 GreenLow00: :00 and 22:30 to 24:00 00: :00 and 20: :00

Electricity bills & the Future Electricity Market Reform (EMR) Electricity price increases are expected as a result of the EMR Carbon Price Floor. Electricity generators are expected to have to pay more to meet the carbon price floor for emissions (perhaps paying £16/tCO 2 ), and they are expected to pass this price on to consumers Capacity Market. Electricity generators are expected to participate in a Capacity Market where they will receive a guaranteed price for electricity in exchange for guaranteeing a certain electricity capacity to the electricity grid. This may lead to higher costs for electricity customers

“How can I use my bills to target & monitor change?”

How can I use my bills to target and monitor change? Understand your energy use – end-use breakdown Identify where targeted improvements can be made across the estate Benchmarking. Compare buildings using a league table to identify poorly performing buildings Activity-based targeting. Calculate expected consumption with reference to things you can measure that make consumption vary. Sub-meter to measure energy consumption by end use Monitor and measure impacts of changes in the future Meter readings. Quantify impacts of changes Share success. Share monitoring results of energy savings

Image source: Carbon Trust. Schools, Learning to improve energy efficiency. CTV019 Understand your energy use Energy consumption end-use breakdown

Benchmarking Compare similar buildings Image source: Better Metering Toolkit. Better Building Partnership. London 2011

Estate league table Building ID NameFloor area (m 2 ) Annual heat (kWh/m 2 ) Peak Heat (kW) Annual electricity (kWh/m 2 ) Annual Emissions (kgCO 2 /m 2 ) Water consumption (m 3 /person) Use benchmarking within the estate identify poorly performing buildings that can be improved, and also to identify buildings that are performing well that can be emulated Targets can be set and over – consumption league tables to prioritise investigations

Opportunities for energy and cost saving Switching off. Turn off energy consuming equipment when not in use. Can be switched off by building users, or timer switches, or building control systems Maintenance. Routine maintenance procedures can improve energy efficiency Identify simple changes to tariffs. Alternative tariffs Power factor correction. Reduce reactive power used by equipment Demand-side response. Run equipment at night for lower off-peak electricity rate Refurbishment. Including energy saving measures in major refurbishments can be cost effective

Targeted improvements Activity-based targeting. Calculate expected consumption with reference to things you can measure that make consumption vary Energy usePossible driving factor Space heatingOutside temperature Air conditioningOutside temperature, possibly also humidification levels Steam raisingQuantity of steam produced Production processProduction quantity Exterior lightingHours of darkness DryingQuantity of water removed from product Table source: Monitoring and Targeting, Techniques to help organisations control and manage their energy use. Carbon Trust

Image source: Energy audit checklist. Resource Efficient Scotland Walk around checklist Identify energy saving opportunities in a walk-around

Image source: Better Metering Toolkit. Better Building Partnership. London 2011 Monitor and measure Automatic meter readings

Image source: Monitoring and Targeting, Techniques to help organisations control and manage their energy use. Carbon Trust Monitor & measure 24-hour profile

Monitor & measure Image source: Better Metering Toolkit. Better Building Partnership. London 2011 Week profile Sub-metering to show end-use

Monitor & measure False-contour plot Each horizontal column is one day (x-axis) Each vertical column is one hour (y-axis) Cells colour-coded for power level Image source: Monitoring and Targeting, Techniques to help organisations control and manage their energy use. Carbon Trust

Share success Energy consumption Before and after energy saving measures Image source: CMU energy savings over a year

Share success Energy dashboard Energy consumption by end use in buildings (e.g. plug loads) Image source: CMU energy savings over a year

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Alternative tariffs Single rate Standard rates

Alternative tariffs Block rate Charges are based on a series of different kilowatt-hour rates applying to successive kilowatt- hour blocks of a given size during the period

Alternative tariffs Off-peak (E7, Economy 7) Electricity is charged at two rates The day rate is higher The night rate is less expensive Often installed in properties that use electricity for heating and hot water

Alternative tariffs Time of Use (ToU) Part of DUoS structure Different times of day incur different rates Red – Peak Amber – Mid-peak Green – Off peak RateMonday to FridayWeekends RedHigh16: :30 AmberMedium08: :30 and 19: :30 16: :00 GreenLow00: :00 and 22:30 to 24:00 00: :00 and 20: :00 DUoS = Distributed Use of System

Alternative tariffs Feed-in tariff Payment made to organisation generating own electricity using renewables (e.g. PV)

Control Consumption driven by weather Relationship between fuel consumption and heating degree days Source: Monitoring and Targeting, Techniques to help organisations control and manage their energy use. Carbon Trust

Power factor correction Power factor. Ratio of useful power to total power drawn from AC supply Inductive devices use reactive power. Motors, welding sets, induction heaters, fluorescent lights. Power Factor Correction (PFC) Uses capacitors Reduces power consumption Leads to increased supply capacity Increases life expectance of electrical equipment Image source: Power factor correction, An introduction to technology and techniques. Carbon Trust Image source: and-power-factor

Voltage Voltage. Average supply voltage in UK is 242V May not match building equipment needs, causing electricity losses Transformer tap settings Check building equipment voltage requirements Adjust voltage to match building requirements to reduce losses Use settings on your existing transformer for voltage regulation Distribution transformers have off-circuit selectors (“tap changers”) to allow for manual ratio adjustment of site Low Voltage (LV)

Demand-side response Load shifting. Use off-peak electricity rates where possible by operating some equipment at night – e.g. charge electric vehicles at night Thermal energy storage Cooling. Building chillers operated at night to generate cold brine, or ice, which is stored in a central tank. During on-peak hours, chilled water circulated from storage system to supply building air conditioning system or supplement chilled water from a smaller chiller Heating. Electric storage heaters (where gas heating is not available) Distributed generation. Generate low-carbon electricity at the site – e.g. PV panels