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Cost arbitrage: electricity x gas

Cost arbitrage: electricity x gas

An example of water heating to illustrate the convenience of evaluating - always - the most interesting energy source.

  • The cost of electricity for my home is R$ 0.8/kWh (1 USD = R$ 4,2)
  • The cost of the 45 kg LPG plug is R$ 290 or R$ 6.5/kg 
  • One kg of LPG plug contains 12.8 kWh, so its cost is R$ 0.5/kWh 

So for a first approximation, heating water via LPG is about 37% cheaper than via electricity.

An alternative to consider is migrating to the white tariff, and feeding the heater off peak, which would allow access to a 15% lower tariff.
 

Rafael Herzberg's picture

Thank Rafael for the Post!

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