Standing charge or no standing charge?

Hugbubble

...that is the question...?

How do I work out whether it is more economical to pay a standing charge on my electricity supply or not?

Thanks

Cardew

Everyone pays a standing charge on their electricity!

It can be a daily charge of xx pence(which I expect is what you mean)

OR

You pay extra for the first xxx units in a quarter. This is called Tier1/tier2 or primary/secondary units.

For most people this standing charge paid by either method comes to the same thing.

However if you use tiny amounts in a billing quarter(say you go away for several weeks) then the Tier1/Tier2 method may be slightly cheaper.

For instance I have a little used annex with a separate supply and it is cheaper for me to use the tier method.

babykitten

Cardew wrote: »

Everyone pays a standing charge on their electricity!

It can be a daily charge of xx pence(which I expect is what you mean)

OR

You pay extra for the first xxx units in a quarter. This is called Tier1/tier2 or primary/secondary units.

For most people this standing charge paid by either method comes to the same thing.

However if you use tiny amounts in a billing quarter(say you go away for several weeks) then the Tier1/Tier2 method may be slightly cheaper.

For instance I have a little used annex with a separate supply and it is cheaper for me to use the tier method.

I think you've confused your point here with your first sentence. My provider (Atlantic) has a no standing charge and, as you correctly point out, if you use very little on that tariff in a quarter then you pay less.

In fact, taking it to the extreme. Imagine you were away for a whole quarter and no light or any other appliance consumed any electricity. On a no standing charge tariff you would essentially pay nothing.

Of course, if you are on no standing charge, but use a normal amount of electricity then the extra paid by the tiering system would eliminate the saving of not having a standing charge, which is what you said.

espresso

babykitten wrote: »

I think you've confused your point here with your first sentence. My provider (Atlantic) has a no standing charge and, as you correctly point out, if you use very little on that tariff in a quarter then you pay less.

But you pay more per kWh on a no standing charge tariff, which effectively collects the same charge.

Quentin

If you pay a separate standing charge then it gets charged irrespective of any other useage (or non useage).

If you don't have a standing charge tariff, and you are a low user for any reason, then you will save some money.

So take a no standing charge tariff - as there is the chance of a saving, and you won't pay more than the standing charge tariffs.

Cardew

babykitten wrote: »

I think you've confused your point here with your first sentence. My provider (Atlantic) has a no standing charge and, as you correctly point out, if you use very little on that tariff in a quarter then you pay less.

In fact, taking it to the extreme. Imagine you were away for a whole quarter and no light or any other appliance consumed any electricity. On a no standing charge tariff you would essentially pay nothing.

Of course, if you are on no standing charge, but use a normal amount of electricity then the extra paid by the tiering system would eliminate the saving of not having a standing charge, which is what you said.

I have not confused anything!

You pay a 'standing charge' it is just can be collected in 2 different ways. Daily charge or 2 tier payments.

I explained how with very low usage you might pay less with the 2 tier method.

However the OP asked about electricity. Given that the Tier 1 allocation of unit in a quarter is low (225 in a quarter at the most) it will be very unusual for anyone to not 'use up' all their tier 1 units.

Their is more scope for saving with gas as the tier 1 allocation is bigger and some people do not use much gas in the summer.

Eagle15

What about Ebico? They have no standing charges and no Tier system. It's one rate per Kwh regardless of how much you use.

KimYeovil

Some would say Ebico is all Tier 1 but with a by unit very much lower and with a by typical consumption slightly higher cost.

HappyMJ

Yes I think we all agree that Ebico is not good for high consumption users. It's great for those on a tight budget who are willing to cut consumption. Also fantastic for those with second properties only lived in for 6 months of the year.

On the question though it's up to you...it'll only be pennies difference in the end if you're a normal user. I go for "No standing charge" myself as there is only me in the house and I'm rarely there.

tonester

I use Ebico because my gas usage is small about £200 per year and I only use the heating for 6 months of the year.....a standing charge for 6 months would pay for a month or so,s usage....!!

babykitten

Cardew wrote: »

I have not confused anything!

You pay a 'standing charge' it is just can be collected in 2 different ways. Daily charge or 2 tier payments.

I explained how with very low usage you might pay less with the 2 tier method.

However the OP asked about electricity. Given that the Tier 1 allocation of unit in a quarter is low (225 in a quarter at the most) it will be very unusual for anyone to not 'use up' all their tier 1 units.

Their is more scope for saving with gas as the tier 1 allocation is bigger and some people do not use much gas in the summer.

I accept that there's no such thing as a free lunch but if you are a very low user it's not you MIGHT save, you WILL save and quite significantly, if usage is low enough.

All I meant was that by saying everyone pays a standing charge you will potentially confuse people. With my tariff, if I use zero gas or electricity for a quarter then I pay £0. There is no standing charge whatsoever. Of course, realistically, most people do not use such a low amount as to make massive savings. I use a low enough amount to make savings that are worthwhile but hardly worth writing home about.

I still pay NO standing charge though. I pay the EQUIVALENT of MOSTof the same amount as that standing charge however, through the higher cost of the units. I was not disputing this.

I totally agree that the scope is much better for saving with gas than electricity. Most people use more gas, unless they have electric heating and the tier limits are easier to undercut if you have a smaller house or good insulation. And as you rightly point out, heating is very seasonal. Electricity usage (if heating not electric) is much more consistent throughout the year.