Should the cost of our TV license be based on how much TV we watch?

Yes, good idea. I hardly watch TV at all, in fact I'm not sure why I have one!

The TV licence funds the BBC perhaps you should give up watching the BBC and ask the licencing authority for your money back. Let us know how you get on if it works I will try the same with my car tax as I don't drive very far.

I understand this idea, but whilst it will work for some people it won't for everyone.

For instance, in my own situation it could be incredibly difficult to regulate. I have Sky+, and don't watch any TV shows live, really. I have a few series that I follow and watch regularly, but I tend to let these record throughout the week and have a two or three hour viewing session every time my OH is out (he dominates the TV when he's in). Assuming my OH wasn't constantly watching TV, and I lived alone but wanted the same routine of record/watch in bulk, how would I be charged? To catch all my shows, my Sky box has to be on at all times. Otherwise, would it have to automatically switch on at the desired time to record, and switch off again once it finished?

I was in Portugal last year and learnt that the TV licence is integrated with your electric bill as an estimated percentage.
This seemed a simple way to address this issue unless you dont own a TV.

No. The BBC licence fee works rather like a tax and it funds the complete range of BBC output which will include some programmes you like and some you don't. The programming that you find interesting or useful will change over time and will depend on your interests. The output needs to be broad and should include minority interests. If you used the 'broadband' principle across the board you could say that you don't want to pay so much Council Tax because you haven't called the police this year or want to pay less tax if you haven't used the education system.