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LittleAli

Electricity charge excessive per kw?

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Hi there, my husband and I have put a deposit down on our first static caravan however I am not so sure about the charges for the electric that they are stating.  They are stating 24p per KW excluding VAT but if that’s meant to mean per kWh this seems exceptionally expensive. Please could anyone shed some light on whether this is about right?

Your hell would be greatly appreciated.

Ali

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Compared to a domestic supply then yes, it is expensive .

I don't suppose you can predict how much you would use over the year, but it might be 'illuminating' to put together an estimate of your total annual running costs for  all utilities and other charges.

You will be saving some money at home whilst you're in the van.

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6 hours ago, LittleAli said:

Hi there, my husband and I have put a deposit down on our first static caravan however I am not so sure about the charges for the electric that they are stating.  They are stating 24p per KW excluding VAT but if that’s meant to mean per kWh this seems exceptionally expensive. Please could anyone shed some light on whether this is about right?

Your hell would be greatly appreciated.

Ali

At 24p per KWh + VAT, you'll need to shed your own light ... Is there the Standing Charge on top of this? Our leccy deal at home is about to expire, and, no surprise, the price is going to rise, yet again. But the daily Standing Charge is somewhere in the region of 32p per day whilst the KWh charge is just shy of 14p. In our case, the Standing Charge will be almost 50% of our total electricity bill and it has risen 2.5p per day [or over 20% ...].

Steve

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Why not ask the park owner for more information?  Before doing so, look at the Ofgem website which explains the legislation about the resale of electricity - including the fact that a reseller (such as a park owner who buys electricity from an electricity supplier and then sells it on to caravan owners) is not allowed to make a profit from the resale - meaning that while a small admin fee is legal, increasing the price in order to make a profit is not legal.

Any admin fee must be shown separately, not added to the unit rate.

The tariff is almost certainly commercial, so there is no standing charge on top of the unit price, so providing you have your own meter on the van you will pay only for what you use plus VAT.

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Many static parks have Half Hourly metering and generally this is cheaper per kw.  Also they tend to have their own meters.  I am fairly certain that they cannot charge you a standing charge. 

Unfortunately as you have already paid a deposit you are probably now locked into a contract and cannot cancel.  If you object to the price and contact Ofgem, the park owner can make your life a living hell!

I would hate to know what other hidden charges this park owner could impose at inflated prices.  Study the contract, perhaps take legal advice and see if you can get out of the contract and find another park that is more open about charges.

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Looked into the world of statics 2 years back but got frightened off.

 

Some info below on electricity resale costs etc.

 

https://www.ofgem.gov.uk/publications-and-updates/resale-gas-and-electricity-guidance-maximum-resale-price-updated-october-2005

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VAT ought to be 5% for electricity. We have been using a static on a Camping and Caravanning Club site and their electric cost is a lot lower than normal domestic since they are a large company and get it cheaper than you or I could.

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More than likely the site owner has installed sub meters at their own expense and is trying to recoup this cost and that is illegal.  Basically they have one main meter and there is one standing charge for that meter.  They then fit their own sub meters which are read every month and maintained by the site owner and there is no meter operator that inspects these meters or calibrates them.

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Thanks everyone, you’ve been most helpful. We are not tied in with anything yet as we have a cooling off period. Have called the company and they’ve explained everything to me.

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41 minutes ago, LittleAli said:

Thanks everyone, you’ve been most helpful. We are not tied in with anything yet as we have a cooling off period. Have called the company and they’ve explained everything to me.

The company will explain it in a way that they think will answer your questions.  In other words that will probably not be overly truthful by leaving out some facts.  However it is your decision, but I would suggest that you do a couple of Internet searches on buying a static caravan.

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Durbanite you really are miserable old so and so !!  We have a static on the south coast and a similar property in Cornwall and we have never had a problem with the owners/staff telling lies or exaggerating.  Of course do research but they are not all as nasty as you make out.

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As I understand it holiday parks cannot charge more per KWh than they are charged by their supplier.

It would appear to me that the price you have been quoted isat the top of price range. I’ve seen people on here and FB groups  quote from 12p/13p at the lower end now upto your 24p at the upper end. 

How are their prices on other things?

 

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3 hours ago, Durbanite said:

 

Unfortunately as you have already paid a deposit you are probably now locked into a contract and cannot cancel. 

 The Unfair Contract Terms legislation may apply, and Trading Standards would be able to assist towards a favourable outcome.

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Posted (edited)
12 minutes ago, TedNewman said:

Durbanite you really are miserable old so and so !!  We have a static on the south coast and a similar property in Cornwall and we have never had a problem with the owners/staff telling lies or exaggerating.  Of course do research but they are not all as nasty as you make out.

Thanks TedNewman for your positive attitude, I’ve seen a lot of negative stuff about statics!

 

Edited by LittleAli

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10 minutes ago, DaveE1 said:

As I understand it holiday parks cannot charge more per KWh than they are charged by their supplier.

It would appear to me that the price you have been quoted isat the top of price range. I’ve seen people on here and FB groups  quote from 12p/13p at the lower end now upto your 24p at the upper end. 

How are their prices on other things?

 

 

DaveE1 they are actually very reasonable, we’ve done our research having been on seasonal pitches for last 5 years. We currently pay by card into a meter for our current electric and I’ve never asked what the rate is! The holiday park which the static is on is a well established company with several sites and my experiences with them have been very good, having had touring holidays with them in the past.  The site fees are comparable to other parks in the area and being in Dorset these seem to be higher than other areas in the UK!  I’ve found out who their supplier is and, as they should, they only charge the same per unit as they are charged. 

 

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Both Durbanite and Tednewman are correct - there are many happy static owners, and there are also many horror stories.

Both attitudes are extremely useful.

One reminds people to make sure they know what they are getting into and not to just rely on a sales pitch.

The other to highlight the fact that that happy endings are very possible.

The majority of the horror stories come from either people who did not do their research (and so purchased from a rogue) or from people who had unrealistic expectations about static ownership/did not actually read what they were signing up for. Or, even more often, people who overlook that caravan parks are a business and need to make a profit..

The happy owners are the ones to carried out a bit of research, took the time to read the contract, and have realistic expectations.

LittleAli is evidently going to be a member of the happy owners group.

 

 

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Posted (edited)
20 hours ago, TedNewman said:

Durbanite you really are miserable old so and so !!  We have a static on the south coast and a similar property in Cornwall and we have never had a problem with the owners/staff telling lies or exaggerating.  Of course do research but they are not all as nasty as you make out.

Unfortunately close friends of ours got caught out twice many years ago and lost a small fortune when in the first instance they were "forced" into selling as the new owners wanted the pitch for a park home.   Ca't remember what happened the second time and don't want to ask. 

The landlady at the pub also got caught as they bought a static through the site owner, but when they came to sell it 3 years later were offered £11000 by the owner on a £32000 purchase.  They had no choice except to take the offer.  The owner then sold it on for £25k+!

As said there are many happy owners and also many unhappy people who lost a lot of money.  Being forewarned is being forearmed as many sales people will tell you what you want to hear in order to get a sale.  Either way at £0.25p a kw that is an excessive charge and probably illegal!

Edited by Durbanite

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Electricity charges are now controlled by law so that one should be easy to check on.  The other thing is that some people think that buying a static is an investment like a house - it isn't it is just like buying a caravan or car you will lose money on it BUT you should be able to enjoy it!

 

And as a BTW this applies to park homes as well unless you can buy the freehold of the plot which is what we have done with our Cornish Lodge.

 

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On 17/05/2019 at 14:04, DaveE1 said:

As I understand it holiday parks cannot charge more per KWh than they are charged by their supplier.

It would appear to me that the price you have been quoted isat the top of price range. I’ve seen people on here and FB groups  quote from 12p/13p at the lower end now upto your 24p at the upper end. 

How are their prices on other things?

 

Interesting topic this. 

If they genuinely  can't charge the customer any more than they pay their supplier - and they must be buying lots of electricity for the whole site & hence could negotiate a very competitive rate - then I can't quite understand why they are charging 24 p when I only pay 13.3 p as a domestic customer.

Something doesn't add up.

 

In order to supply electricity to each static van, the site has to run cables and switchgear to each plot.  That system, once installed, will need maintenance, safety checks,  repairs & replacements.   The site owner needs to recoup these costs.

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9 hours ago, pepys1660 said:

In order to supply electricity to each static van, the site has to run cables and switchgear to each plot.  That system, once installed, will need maintenance, safety checks,  repairs & replacements.   The site owner needs to recoup these costs.

The site owner would recoup the costs by means of the initial siting cost, the pitch fee, and (for reading and billing) an admin fee.

None of these can be legally added to the per unit cost; the actual supply has to be rebilled at the same rate as paid.

Business rates attract VAT at 20%, not the 5% applied to domestic, plus I believe they also have a climate charge levy.

24p per unit is at te top end of the scale, but is quite possible looking at 2019 tariffs.

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On 18/05/2019 at 10:35, Durbanite said:

Unfortunately close friends of ours got caught out twice many years ago and lost a small fortune when in the first instance they were "forced" into selling as the new owners wanted the pitch for a park home.   Ca't remember what happened the second time and don't want to ask. 

The landlady at the pub also got caught as they bought a static through the site owner, but when they came to sell it 3 years later were offered £11000 by the owner on a £32000 purchase.  They had no choice except to take the offer.  The owner then sold it on for £25k+!

As said there are many happy owners and also many unhappy people who lost a lot of money.  Being forewarned is being forearmed as many sales people will tell you what you want to hear in order to get a sale.  Either way at £0.25p a kw that is an excessive charge and probably illegal!

I agree totally about “forewarned is forearmed” .

However Idon’t think the figures you quote for sale and resale of statics represent someone being “ripped off”. There will have been hidden extras in the original pricing which is always above “book price”. As to the buying back and reselling price differential , no dealer in any commodity trades without wanting to make a profit. 

Any research into static ‘vans would tell people these sort of figures are standard in the holiday park industry  and as you said forewarned would have been forarmed.

I’m sorry for anybody who feels they got taken for a ride but as grandad used to say “ you can’t get taken for a ride if you don’t get on the bus”.

I bought my ‘van, knowing what I got into, and love the life style it enables me to have.

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