Swalec - standing charge??

welshsue

Hi
Hope someone can help.
I currently use Swalec for electricity through a pre-payment meter. I have become eligible for the social tariff and have been sent a new key which I duly put into the meter today and it adjusted the rate to the new social tariff rate. I was scrolling through the displays and noticed that under F (which is where the standing charge used to be), which was zero, I now have a charge of £1.00 per week.

Since August 2008 Swalec have proudly been stating that they no longer charge prepayment customers standing charges. I have just spoken to Swalec and they are saying that yes the charge was taken off but it is hidden in the rate. He believes this £1.00 per week is standing charge but is checking for me.

Surely if this is the case, then I should be able to take this to trading standards as they are blatanly lying.

Does anyone else know about this or had problems.

savers_united

I would'nt worry about it to much, £1 / Week = £52 a year, as the gentleman on the phones says, this £52 is incorporated into the rate so at the end of the year you would of paid a similar total for your energy by paying more per Kwh, so financially you will not be out of pocket.

Swalec do state the following regarding Prep Payment meters

"You may pay a little towards the service charge"

CloudedPearl

All supplier's no standing charge tariffs involve charging a certain amount of units (generally between 160 and 300 kWh per quarter) at a higher rate (primary units) and the remaining units (secondary units) at the standard rate. Whilst this means your invoice/bill/statement only bills for units of energy used and does not bill for standing charges, the units charged at the higher rate effectively recoup the standing charges they do not show on your invoice. Dependent on your supplier's actual prices, due to the differential between the primary units and the secondary units, your total energy charges per year on a no standing charge tariff will be virtually indentical to the same supplier's standing charge tariff (unless you are an extremely low user or have this tariff for an empty property or holiday home) - to confirm this, multiply your annual usage against your supplier's standing charge option and no standing charge option.

Specifically, many prepayment meters do not have the option to charge one rate for a certain number of units of energy used then a different rate for the remainder so the only feasible option for customers on a no standing charge tariff is for your prepayment meter rates to remain set at the same rates (with a weekly standing charge and pence per unit charge) with the amount collected via the weekly standing charge being offset against the higher charge of the primary units when your invoice or statement is issued. This explains why there is a standing charge on your meter. I would suggest the fact that you did not previously have a standing charge on your metrer prior to being transferred to a social tariff is more likely to be down to your pence per unit charge having been higher than your standard unit price or being set at £0.00 in error.

welshsue

I have a key meter and one rate is charged regardless of usage.
I have the printed literature from Swalec last August which shows all the tariffs for different areas and it clearly shows all rates now have no standing charges.

Swalec have admitted to me that yes they market it as no standing charge on all rates but when the rates increased, they put the standing in as part of the increase and hoped that nobody would notice.

Because I have now gone onto a social tariff, they have said there is no code to programme into the meter with the rate including the standing charge so have to show it seperately.

My issue is that they are misleading customers. I have received the complaint guidelines and will be forwarding a written complaint to them.

CloudedPearl

I don't see that they are misleading customers. They advise you are not being billed for standing charges and your bills will confirm this - in most instances this consists of one rate for a certain number of units used followed by another rate for the remainder of the units used or, in the case of the tariff you are referring to, one rate for all units used.

They are correct in saying that they are unable to set your meter to reflect the exact rates on your bill but you are still only being billed at the published tariff rates. If, due to your meter settings, you have paid slightly more than the published tariff rate then you will have a credit balance and, conversely, if you have paid slightly less than the published tariff rate then you will have a debit balance. Any balance on your bill will only reflect the actual amount of energy you have used at the published tariff rate less or minus what you have paid into your meter - you are not being asked to pay any more or any less than the published tariff rates.