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Can't be done yet

Air source heat pump (ASHP) tariffs?

  • September 5, 2022
  • 3 replies
  • 407 views
  • Wheeler1749

I have an Ashp with no gas connected to the property as it was built as a “green” house. I receive my electricity from OVO 100% renewable energy yet I am being stung for using more renewable electricity with the per unit price rises. An Ashp uses three times less energy than a conventional boiler but the price difference between gas and electricity is   more than four times and rising. Making it more affordable but less green to go back to a gas boiler. Have OVO looked at some kind of green heat tariff as there seems to be plenty on the market for EVs. By using smart meter readings surely it is possible to estimate how much electricity is being used through the year by an ASHP system, this could be then charged at the gas price rate as a discount for being green, or/and remove the standing charge over the winter months as another idea of benefitting for being green. The government want people to move to green heating systems (Net Zero Paper) but there doesn’t seem to be any incentive. Only if you change from gas to Ashp.

3 replies

nealmurphy
Carbon Catcher***
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  • Carbon Catcher***
  • 232 replies
  • September 5, 2022

On the October variable cap electricity unit price is around 3.5 times the price of gas. Taking into account efficiencies of gas boilers and lack of gas standing charges you should be able to run an ASHP system cheaper than a gas system if the efficiency is around 320% or greater.

Depending on your system design you may also be able to make use of Economy 7 or other tariffs to get more of the ASHPs use into cheaper times of the day.

There have been discussions about what an ASHP tariff would actually look like. When would you want cheaper pricing to benefit the system? Time of use tariffs could work whereby you could increase input before the energy peaks and reduce the input at these peak times. 

Maybe the potential decoupling of renewables from electricity prices based on fossil fuels will see a shift in pricing that will favour the use of ASHPs. Certainly one to keep an eye on.


Tim_OVO
Community Manager
  • Community Manager
  • 1864 replies
  • September 6, 2022

Loving this idea, @G.B 

 

Very interesting to hear Neal’s figures above: what’s your “COP” like then G.B? 

 

As for the question around time of use tariffs, I happen to know of a trial happening near Manchester where households have a heat pump tariff with OVO. @nealmurphy for your sake mainly, think of that trial tariff as the type of use ‘Anytime’ add on, but for heat pumps. As you probably guessed, this is Kaluza’s handiwork. 

 

@G.B I can’t tell you when or even if a ASHP smart tariff will be available as an official product from OVO but it’s being worked on. The idea doesn’t actually relate to any of the products that the Forum Ideas module links up with. But I’d like to gauge customer demand for it by keeping it as an idea. 

 

So in short, we’re working on this, but the idea itself will be changed to the ‘Can’t be done yet’ status.


Tim_OVO
Community Manager
  • Community Manager
  • 1864 replies
  • September 6, 2022
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