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

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

| 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.

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.