How to help improve energy management without a dedicated energy manager

Simple Energy Management through Utility Bills

17th 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

SampleCharges kWh Used Pence

per kWh

Total charge (£)

All nights 9,590.10 10.5 1,006.96Summer day 26,027.80 13.5 3,513.75All weekend 13,086.10 15.5 2,028.35Site charge 224.47Agreed supply capacity charge 100.00 at £2.15 for 31 days

215.00

Agreed supply capacity excess 34.0 at £2.15 for 31 days 73.10Other charges Reactive charge for April 2011 @ 20% 0.32Climate change levy 48,704.00 0.485 236.22VAT at 20% 1,459.63Total including VAT 8,757.80

Electricity invoiceNew 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 0.554 p/kWh for electricity and 0.193 p/kWh for gas – goes up in April each year

SampleReading date

Reading this time

Reading last time

Units Used

Correction factor

Adjusted units (m3)

Calorific value

KWh

01/06/2011 149262 C 138475 C 10987.00 1.022640 11235.74 39.4 122968.93

Gas invoiceBill period from 4 May to 1 June

Business unrestricted

£ p

Unrestricted units 122968.93 kWh at 2.687p 3,304.17

Monthly charge 439.76

CCL 122968.93 kWh at 0.1690p 207.81

VAT 20% on charges of 3,3951.74 790.34

Total this invoice 4,742.08

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, 149262 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 (1.02264)

Calorific value (CV). Amount of energy contained in gas, or heat generated when a known volume of gas is combusted (~39.4 MJ/m3)

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 contract3. Total consumption is sum of all billed units in the period of use4. 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 apply9. Sum to find total

How is the bill calculated? ExampleNight Day Weekend

Energy used last month (kWh)   9590.10   26027.80   13086.10Charge (£ per kWh) x 0.105 x 0.135 x 0.155Energy charge (£)   1006.96   3513.75   2028.35

Agreed ExcessCapacity charge (kVA)   100.00   34.00Charge (£ for 31 days) x 2.150 x 2.150

  215.00   73.10

Energy used last month (kWh)   48704.00CCL x 0.005

  236.21

Standing charge (£/month)   224.47Reactive charge   0.32

How is the bill calculated? ExampleNight charge   1006.96

Day charge   3513.75

Weekend charge   2028.35

Agreed capacity charge   215.00

Excess capacity charge   73.10

CCL   236.21

Standing charge   224.47

Reactive charge + 0.320

Subtotal   7298.16

VAT at 20% + 1459.63

Total   8757.80

Electricity Bill Dates Use (kWh) Cost

From To Total p/kWh Total PFMD (kVA)

Tonnes of CO2

Supply capacity kVA

Capacity charge £/kVA

Settlement charges

Standing charges CCL

p/kWh total

Day 30-Jun 31-Jul

253,140

9.061 £22,936.76

135.9 850 £1.37 £42.75 £27.07 0 Total kWh

Night 30-Jun 31-Jul

65,803

6.832 £4,495.53 35.3 £ 1,165

£ -

£ 28,667

318,943

8.99

Day 31-Jul 31-Aug

258,699

9.061 £23,440.46

138.9 850 £1.37 £42.75 £27.07 0 Total kWh

Night 31-Jul 31-Aug

78,562

6.832 £5,367.20 42.2 £1,165

£ -

£ 30,042

337,261

8.91

Day 31-Aug 30-Sep

232,143

9.061 £21,034.25

124.7 850 £1.37 £42.75 £27.07 0 Total kWh

Night 31-Aug 30-Sep

67,547

6.832 £ 4,614.68 36.3 £1,165

£ -

£ 26,883

299,690

8.97

Day 30-Sep 31-Oct

229,152

8.573 £19,644.28 0.98 728

123.1 850 £0.05 £61.54 0 Total kWh

Night 30-Sep 31-Oct

73,354

8.573 £6,288.35 39.4 £1,194

£ -

£ 27,188

302,506

8.99

Day 31-Oct 30-Nov

229,813

8.573 £19,700.95 0.98 696

123.4 850 £0.05 £59.96 0 Total kWh

Night 31-Oct 30-Nov

64,002

8.573 £ 5,486.64 34.4 £1,155

£ -

£ 26,403

293,815

8.99

Day 30-Nov 31-Dec

218,985

8.573 £18,772.71 0.98 728

117.6 850 £0.05 £61.54 0 Total kWh

Night 30-Nov 31-Dec

67,366

8.573 £5,775.02 36.2 £1,194

£ -

£ 25,803

286,351

9.01

Total 3,652,226 £ 0.090 £655,921 852

1,985 £12,932

£ 327,701

Annual 6,275,656 £ 563,092

24 -

£ 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

Rate Monday to Friday Weekends

Red High 16:30 - 19:30

Amber Medium 08:00 - 16:30 and 19:30 - 22:30

16:00 - 20:00

Green Low 00:00 - 08:00 and 22:30 to 24:00

00:00 - 16:00 and 20:00 -

24:00

Electricity bills & the FutureElectricity 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/tCO2 ), 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 useEnergy consumption end-use breakdown

BenchmarkingCompare similar buildings

Image source: Better Metering Toolkit. Better Building Partnership. London 2011

Estate league table

Building ID

Name Floor area (m2)

Annual heat

(kWh/m2)

Peak Heat (kW)

Annual electricity (kWh/m2)

Annual Emissions (kgCO2/m2)

Water consumption

(m3/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 emulatedTargets 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 improvementsActivity-based targeting. Calculate expected consumption with reference to things you can measure that make consumption vary

Energy use Possible driving factor

Space heating Outside temperature

Air conditioning Outside temperature, possibly also humidification levels

Steam raising Quantity of steam produced

Production process Production quantity

Exterior lighting Hours of darkness

Drying Quantity 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 http://www.resourceefficientscotland.com/resource/energy-audit-checklist

Walk around checklistIdentify energy saving opportunities in a walk-around

Image source: Better Metering Toolkit. Better Building Partnership. London 2011

Monitor and measureAutomatic meter readings

Image source: Monitoring and Targeting, Techniques to help organisations control and manage their energy use. Carbon Trust

Monitor & measure24-hour profile

Monitor & measure

Image source: Better Metering Toolkit. Better Building Partnership. London 2011

Week profile•Sub-metering to show end-use

Monitor & measureFalse-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 successEnergy dashboard•Energy consumption by end use in buildings (e.g. plug loads)

Image source: CMU energy savings over a year

For more information on our tools, guides and available support, please visit our website:

www.resourceefficientscotland.com

Alternatively, contact us by email:

pssupport@resourceefficientscotland.com

Alternative tariffsSingle rate•Standard rates

Alternative tariffsBlock rateCharges are based on a series of different kilowatt-hour rates applying to successive kilowatt-hour blocks of a given size during the period

Alternative tariffsOff-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 tariffsTime of Use (ToU)•Part of DUoS structure•Different times of day incur different rates

• Red – Peak• Amber – Mid-peak• Green – Off peak

Rate Monday to Friday Weekends

Red High 16:30 - 19:30

Amber Medium 08:00 - 16:30 and 19:30 - 22:30

16:00 - 20:00

Green Low 00:00 - 08:00 and 22:30 to 24:00

00:00 - 16:00 and 20:00 -

24:00

DUoS = Distributed Use of System

Alternative tariffsFeed-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: http://electrical-engineering-portal.com/beer-mug-and-power-factor

VoltageVoltage. 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