PowerSwitch

The regulations regarding permitted uses of red diesel fuel will soon be changing, on April first.

If I have correctly understood the new regulations, white diesel will be required in generators used for trade or industrial purposes. Including but not limited to offices, shops, factories, building sites and the like.

Generators, and diesel burning heaters in domestic premises may still use red diesel, as may hospitals, places of worship, traveling circuses and funfairs, and sporting clubs.

Houseboats are considered as homes and may use red diesel for power generation, but PERHAPS not for propulsion.

Motor homes are also considered as any other home, and may use red diesel for heating and electricity generation, but not of course for moving the vehicle on public roads.

Railways, whether network rail or heritage operations may use red diesel for propulsion, and also for generating electricity for ancillary purposes such as heating, cooking, and electric lighting, on board a train PROVIDED THAT this electricity is produced from the engine(s) that propel the train. If a SEPERATE generator is used to produce electricity on board a train, then my understanding is that this requires white diesel.

Any generators used in railway workshops or at engineering work sites will require white diesel, as for any other trade purpose.

Any diesel burning heater on a train does AFAIK need white diesel, which may be problematic as the fuel for these heaters comes from the same tank as the engine.

The big economic impact might be with the construction industry... at least they are kicking up a fuss. However, it's only around 11p a litre difference so just another minor contribution to the inflation explosion.

At present prices, local diesel generation can be cheaper than grid supplied electricity.

A large modern diesel generator can produce about 4 units of electricity per liter of fuel. 3 units of electricity per liter might be more realistic for a smaller generator.

With red diesel at 60 pence a liter, the fuel cost will be about 15 pence to about 20 pence a unit.

Grid supplied electricity costs about
20 pence a unit, present capped domestic price.
30 pence a unit, capped domestic price from April.
50 pence a unit, market price for non domestic use.

Fuel alone does not tell the whole story, consider capital costs, depreciation, maintenance and spares. And remember that the cost per unit can rise alarmingly on low load.

OTOH if the waste heat from a generator can utilised instead of natural gas, then very substantial savings are likely.

Hospitals can use red as long as they don’t export any electricity.
CHP gen sets can be cheaper if loaded well with both heat and electrical load.
But can be expensive to purchase and maintain.