Electric Tariff can anyone explain please?

Cardew

BallandChain wrote: »

Thanks for the link and info Premier. This was before 2000 and I had no idea they have scrapped the standing charge! I'm getting a standing charge for my electricity with EDF. If British Gas scrapped their standing charge I wonder why the other utilities haven't. I'm guessing that the units (for gas/electricity) are more pricier with British Gas to compensate for scrapping the standing charge?

There still is an effective 'standing charge' with all companies(except Ebico)

This is either achieved with the daily standing charge of xxp. OR a tier 1/tier2 system where you are charged extra for the first units in a quarter(tier 1)

The amount of tier 1 units varies by company and tariff, but if you use all the tier1 units(as the majority of customers) then it is the same cost as a daily standing charge.

The only people who gain are the very low users - normally for gas in the summer.

Cardew

It is also worth pointing out that some companies seem to taking steps to ensure that more low users pay the full 'standing charge'.

They do this by decreasing the allocation of Tier 1 units, but increasing their price.
e.g. all BG tariffs used to have 225 kWh(Elect) and 1143kWh(gas) on tier 1. Their latest tariffs have 125 and 680.

NPower's notorious 'sculpting' or seasonal weighting for gas means you are always going to pay the full standing charge.

BexTech

BallandChain wrote: »

Thanks for the link and info Premier. This was before 2000 and I had no idea they have scrapped the standing charge! I'm getting a standing charge for my electricity with EDF. If British Gas scrapped their standing charge I wonder why the other utilities haven't. I'm guessing that the units (for gas/electricity) are more pricier with British Gas to compensate for scrapping the standing charge?

Many companies have scrapped the standing charge, however most of them give you the choice, with a standing charge or without, if you are an average user then the costs work out the same.