Gas Billing Considerations: Difference between revisions

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Previously, energy was charged only based on a flat rate per unit of consumption, which was the volume of gas being passed to the consumer. The energy unit cost could be annually adjusted and was decided by the national government. None of the developed countries still use this system to determine energy cost.

For all intents and purposes, the current billing system uses a flat rate energy consumption with certain adjustments. In Britain, Europe and Japan, but also in many other developed countries around the world, the metered gas, as measured in cubic centimeters, is adjusted for pressure and temperature and given an equivalent value adjusted based on thermal (burning) energy release, known as calorific value. A typical billing ends up as below.

Keep in mind that energy unit cost is a derived value based on the pre-determined performance of gas. through production and distribution costs, that may or may not be separately reflected on the energy bill. The calculus below is repeated for each consumption price tier presented below.

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Gas volume is amount of metered gas (in m3)

VC is Volume correction factor, typically 1.02264

KC is ~~Kilowatt~~/hour conversion rate, always 3.6

KC is KiloWwatt/hour conversion rate, always 3.6

CV is Calorific value, between 38-41 MJ/m3, typically 39.5 MJ/m3

'''Energy cost''' = Delivered energy x ~~Kwh~~ unit price

'''Energy cost''' = Delivered energy x KWh unit price

where KWh unit price can be similar to electrical energy derived KWh unit price

===Tiered consumption range===

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The V.A.T. as is commonly known, can change by national government decision. It is typically between 5-25%, depending on country and product or service.

~~===Flat rate===~~

For all intents and purposes, the current billing system uses a flat rate energy consumption with certain adjustments. In Britain, Europe and Japan, but also in many other developed countries around the world, the metered gas, as measured in cubic centimeters, is adjusted for pressure and temperature and given an equivalent value adjusted based on thermal (burning) energy release, known as calorific value. A typical billing ends up as below.

~~===Flat rate with tiered consumption range===~~

Sometimes, this system is being transparently offered to consumers or it is being enforced as their consumption is determined. This way of billing traditionally set a lower energy unit rate for higher consumers, based on different consumption ranges. This depended on country and utility distributor conditions.

It is important to note that split fuel cost structures may also be introduced as methane is mixed with hydrogen, in different amounts up to 30%, as it seems, in the next decade. This will obviously increase the cost of gas but slightly reduce air pollution and dependency of foreign gas imports.

===Future systems===

@@ Line 27: / Line 27: @@
 Previously, energy was charged only based on a flat rate per unit of consumption, which was the volume of gas being passed to the consumer. The energy unit cost could be annually adjusted and was decided by the national government. None of the developed countries still use this system to determine energy cost.
+For all intents and purposes, the current billing system uses a flat rate energy consumption with certain adjustments. In Britain, Europe and Japan, but also in many other developed countries around the world, the metered gas, as measured in cubic centimeters, is adjusted for pressure and temperature and given an equivalent value adjusted based on thermal (burning) energy release, known as calorific value. A typical billing ends up as below.
 Keep in mind that energy unit cost is a derived value based on the pre-determined performance of gas. through production and distribution costs, that may or may not be separately reflected on the energy bill. The calculus below is repeated for each consumption price tier presented below.
@@ Line 34: / Line 36: @@
   Gas volume is amount of metered gas (in m3)
   VC is Volume correction factor, typically 1.02264
-  KC is Kilowatt/hour conversion rate, always 3.6
+  KC is KiloWwatt/hour conversion rate, always 3.6
   CV is Calorific value, between 38-41 MJ/m3, typically 39.5 MJ/m3
-  '''Energy cost''' = Delivered energy x Kwh unit price
+  '''Energy cost''' = Delivered energy x KWh unit price
+ where KWh unit price can be similar to electrical energy derived KWh unit price
 ===Tiered consumption range===
@@ Line 69: / Line 72: @@
 The V.A.T. as is commonly known, can change by national government decision. It is typically between 5-25%, depending on country and product or service.
-===Flat rate===
-For all intents and purposes, the current billing system uses a flat rate energy consumption with certain adjustments. In Britain, Europe and Japan, but also in many other developed countries around the world, the metered gas, as measured in cubic centimeters, is adjusted for pressure and temperature and given an equivalent value adjusted based on thermal (burning) energy release, known as calorific value. A typical billing ends up as below.
-===Flat rate with tiered consumption range===
-Sometimes, this system is being transparently offered to consumers or it is being enforced as their consumption is determined. This way of billing traditionally set a lower energy unit rate for higher consumers, based on different consumption ranges. This depended on country and utility distributor conditions.
-It is important to note that split fuel cost structures may also be introduced as methane is mixed with hydrogen, in different amounts up to 30%, as it seems, in the next decade. This will obviously increase the cost of gas but slightly reduce air pollution and dependency of foreign gas imports.
 ===Future systems===