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Feb 17, 2025

Thanks Lewis. I agree, and I think heat is the hardest bit of this.
On the cheap periods of power - I was initially very sceptical of this, but it seems there is a very real cost saving (not just related to wholesale costs). In a sense, standard tariffs are inflated a bit because you’re paying to cover the peak (and by definition most people’s electricity is concentrated at the peak). So switching to pass through tariffs - esp with a heat pump and/or EV - lead to genuine savings, at least for the foreseeable future.
New Nesta blog by me and Andy Regan on this btw! https://www.nesta.org.uk/blog/can-time-of-use-tariffs-make-heat-pumps-cheaper-to-run/

Andrew Sissons
Andrew Sissons

Written by Andrew Sissons

I’m an economist and policy wonk who’s worked in a range of different fields. I mostly write about economic growth and climate change, and sometimes both.

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