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Understanding the Arms bill (1)

14/4/2018

1 Comment

 
 How Arms calculates the cost of electricity:

From the Electricity Supply Regulations, these are the annual allowances at each band on the Residential Tariff:
​
i) For every kWh of the first 2,000 kWh ..................... €0.1047; 
ii) For every kWh of the next 4,000 kWh ................... €0.1298;
iii) For every kWh of the next 4,000 kWh ................... €0.1607; 
iv) For every kWh of the next 10,000 kWh ................. €0.3420; 
v) For every kWh of the remaining consumption ....... €0.6076.
 
Arms converts the above ANNUAL allowances at each band to DAILY allowances. 
 
For example, at Band 1, the 2000 kWh annual allowance is divided by 365 days.  This gives the consumer a daily allowance of 5.4794 kWh at €0.1047.  Below are the DAILY allowances of kWh (units) at each band: 
 
For every kWh of the first 5.4794 kWh per day @ €0 .1047
For every kWh of the next 10.9589 kWh per day @ €0.1298
For every kWh of the next 10.9589 kWh per day @ €0.1607
For every kWh of the next 27.3973 kWh per day @ €0.3420
.........................................remaining kWh per day @ €0.6076

​To confirm that this is how Arms calculates the cost of the electricity,  I used the pro rata band allowances above to see whether it would  tally with our latest Arms bill.  This was for a period of 57 days. 
​
​So 5.4794 units per day x 57 days = 312.33 units @ €0 .1047
10.9589 units per day x 57 days = 624.658 units @ €0.1298
10.9589 units per day x 57 days = 624.658 units @ €0.1607
…………………………....……….remaining 707.356 units @ €0.3420



​​As you can see from the second page of our latest Arms bill, my calculation (see left) tallies: 
 

      312.329 units @ €0.1047 = 32.70
      624.657 units @ €0.1298 = 81.08
      624.658 units @ €0.1607 = 100.38
      707.356 units @ €0.3420 = 241.92
     
​Total:          2269 units €466.23 


Our 2269 units of electricity therefore cost 20.55 c per unit of electricity on average – practically double the cost per unit at Band 1 (10.47 c).

This calculation also taught me something new about the Arms billing system.  Effectively larger households obviously get through the cheaper bands more quickly than smaller households.

However, larger households get larger allowances for the eco reduction.  Next on the agenda, I will be looking at whether the larger eco reductions for the larger households compensate for the higher cost per unit (on average), when compared to smaller households.    I will also be illustrating how  being billed every two months is  costing us money.

In the meantime, folks, I would urge all of you to become experts on how the bills are calculated.  This billing system must be the most non-transparent, most unwieldy, most unnecessarily complicated billing system in the universe.  We need to understand how our bills are calculated. 

All I know is that it was cheaper to centrally heat a three-bedroom house in the depths of a Scottish winter than it is to have two electric heaters (occasionally used), two water heaters (occasionally used) and an electric oven.  We don’t have a dryer or a.c. 

A cost of €466.23 for 57 days is excessive, in my book.
1 Comment
Caroline falzon
23/4/2018 02:33:04 pm

My bill for electricity for 187 days came to euro 994.01 Consumption reads 5878 units. Household of 4 people

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    Johanna MacRae

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