Standing Charge vs No Standing Charge

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  • Ken68
    Ken68 Posts: 6,825
    First Anniversary First Post Energy Saving Champion Home Insurance Hacker!
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    edited 4 July 2009 at 11:03AM
    You could be right Cardew, but sad that so many consumers, especially older folk find the whole billing system of the energy customer so confusing.
    Time to simplify whatever.
    PS....the biggest 'hidden' cost is the comparison sites, NEEDED, to make sense of it all. Think of the millions saved if bills were unit costed.
  • I am sorry to bring this thread back from the dead, but rather that than create a new one with the same questions...

    So I am a single man, I have just bought my first 2 bed apartment, it is a new build with an Energy Rating of B...
    It is also a 1st floor so I have an apartment below me, and one above me... So hoping for some residual heat coming through....

    I am well up for seeing how little I can spend on utilities and everything else, infact I love the challenge of reducing as far as I can... I have been brought up in a large house where the boiler has never been man enough to heat the place fully, and would always take 3 hours to get anywhere close...

    So I have learnt to put on an extra layer, and I have a bit of a threshold for the cold...

    So I will only ever be using the heating when I REALLY need to, and as for electricity I intend to use as little of that as possible...

    So would I be better of going for a tariff with a standing charge but less pennies for the units... Or would I be better off going for something without the standing charge but more pennies per unit? From what I have read in this thread I may be better of without a standing charge but I'd love some reassurance if possible...

    Thanks
  • KimYeovil
    KimYeovil Posts: 6,156
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    Arran83 wrote: »
    [...]
    So would I be better of going for a tariff with a standing charge but less pennies for the units... Or would I be better off going for something without the standing charge but more pennies per unit? From what I have read in this thread I may be better of without a standing charge but I'd love some reassurance if possible...

    Thanks

    You have misread. The preference for a two-tier no standing charge tariff is only when choosing between the no standing charge and the daily standing charge versions of the SAME tariff from the SAME supplier.

    When deciding between two different tariffs from the same supplier or between tariffs from different suppliers the SC /NSC is irrelevant - some very cheap tariffs are available in only a standing charge version and this could still work out cheaper.
  • Oh right I see,

    I think I have misunderstood the billing in its entirety...

    I thought the the 1st tier was what you'd pay until you'd used a certain amount, and then it'd switch to the 2nd tier.. So you'd be paying, what you wouldn't have paid in standing charge with the 1st tier's unit cost... I am new to all of this :)

    So now I definitely don't know who to go for, it is really a toss up between Npower and Scottish Power... Scottish Power at least allow me to put in an address if their system can't find it via postcode, Npower don't seem to allow it so I'd have to ring and possibly lose the cashback opportunity from Quidco...
  • KimYeovil
    KimYeovil Posts: 6,156
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    edited 28 February 2010 at 11:36AM
    Arran83 wrote: »
    I think I have misunderstood the billing in its entirety...

    I thought the the 1st tier was what you'd pay until you'd used a certain amount, and then it'd switch to the 2nd tier.. So you'd be paying, what you wouldn't have paid in standing charge with the 1st tier's unit cost... I am new to all of this :)

    No, that is entirely correct. And the tier 1 cap resets each quarter - unused tier 1 units will not be added to next quarter's bill.

    What you are not understanding is the difference between COMPLETELY DIFFERENT tariffs. I repeat - with the standing charge and no standing charge versions of the SAME tariff you should choose the no standing charge version. When comparing COMPLETELY DIFFERENT tariffs all hats are up in the air - a standing charge tariff can be cheaper.
  • Hi,

    no standing charge is ideal if you have a holiday house in the Highlands, and only use it about 3 weeks a year,
  • Thank you both,

    I understand now :)
  • KimYeovil wrote: »
    Surely the noises issuing from authorities suggest that it is Ebico's tariff with its Tier 1-only prices that will be banned? They are more obfuscatory than others.
    How is one simple unit charge obfuscatory?
    This is much simpler to understand than tariffs where you have different rates,in some cases seasonal adjustments and various discounts to be applied.

    So i would say it is many of the other tariffs which seek to confuse the consumer:(
  • KimYeovil
    KimYeovil Posts: 6,156
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    Most suppliers charge a capped flat rate standing charge of between £102 and £175 per year dual fuel.

    Ebico charges uncapped unlimited standing charges - about £430 per year for the average consumer.

    Are Ebico upfront with this standing charge? No, they obfuscate it with their 'equitable' pricing. And their advocates make nonsensical claims about there being no standing charges - they have the most expensive standing charges of any supplier.
  • How do you arrive at the figure of £430
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